Chapter 1. Introduction. A Strong Banking Sector Is Very

One assumption that should be clearly analyzed is that the collection period is of 30 days net. Not always customers have the ability and willingness to pay off their debts in 30 days, some may take more time, and some could incur in bad debt.

The debtor collection period is the time taken for a business to collect its trade debts. It is the number of days the the debtor has to pay back the business who they we money to. The formula for debtor collection period is debtor / sales revenue multiplied by 365.

With this, the loans stay overdue for 270 days or end up being 270 days past due at any time, leading the loans to "default" condition.

After that,Careful examination, standard operation, strengthen the risk of loans, were involved in the loan overdue, have no interest.

The non-performing loans ratio (NPL) of SDB was firstly examined, with reference to exhibit 10, to determine the overall asset quality. SDB’s NPL is 11.6% which is higher than other banks, excluding BoCom at 16.7%. This NPL value is also greater than the industrial average of 7.3% by 1.59 times. This establishes that the assets owned by SDB has generally a lower quality compared to its industrial peers. This NPL ratio reported is not completely accurate as the NPL is calculated from book values, which are completely at the disposition of the bank. It is highly likely that the current NPL is lower than the real NPL, as the bank has an incentive to manipulate the data so that it would attract investors, and boost current stakeholder’s confidence.

There are several ways of ranking the world leading banking institutions. It is possible to distinguish at least three different categories:

A strong and resilient banking system is a foundation of sustainable economic growth. Banks are at the centre of the credit intermediation process between savers and investors. Moreover, banking institutions provide critical services to consumers, small and medium-sized enterprises, large corporate firms and governments, which rely on banks to conduct their daily business, both at a domestic and international level. However, the failure of a bank is unlike that of a non-bank firm, owing to their systemic risk. The failure of banks have the ability to impose large costs on society – externalities – which are not borne by bank shareholders; banks are materially different in their financing, business model and balance sheets

For instance, the inflation rate rose from an annual average of 25.96 per cent between 1986 to 1990 to an average of 48.92 per cent from 1990 to 1995 while the economy grew in real terms at an average of 5.99 per cent and 1.53 per cent respectively. The performance of the naira exchange rate has also been very poor with an average exchange rate of N5.2/$ between 1986 and 1990 reaching an annual average of $99.15/$ between 2001 and 2004, an average depreciation of 1806.73 per cent under two decades. All these and other factors peculiar to individual banks have jointly influenced the behaviour and performances of the banking industry as they try to adjust to the vagaries of the macroeconomic environment. Olaniyan (2000) has indicated that inflation and its variability are part of the important indicators of macroeconomic instability in Nigeria with significant negative impact on investment. This study sets out to investigate specifically, whether instability in the macroeconomic environment impacts positively or otherwise on the lending behaviour of the Nigerian banking sector. As observed by Baum, Caglayan and

The stability of the Financial System largely depends on the strength and resilience of the Banking System. Indian Banks which suffered from negative capital adequacy, negative earnings and high NPAs in the Seventies and eighties are now on a robust footing thanks to the reforms brought about by the Narasimham Committee I and II and on account of the strong resolve of the Govt. and the Reserve Bank of India. It is a matter of pride that the Indian Banks have now become fully Basel II Compliant, and that they

In today’s financial world, the banking sector is the pillar supporting the modern world’s commerce, trade, and industry. With a multitude of services provided on the personal, business, and institutional level, careers in a sector this broad are just as variable. In this essay I will discuss the history, workplace, job description, future developments, and my personal experience regarding the banking career. More specifically, it will focus on two occupations -- financial planners and accountants. A bank is broadly defined as a financial institution that provides a range of services to its customers. Banks play an integral role in the financial future of virtually every Canadian, including individuals, businesses, investors, governments,

Negative trend in Net NPA presents the efficiency of the bank. Every bank tries to minimize the Net NPA and should control them. All the banks selected for study exhibited a positive high growth rate in the assets. The public sector banks presented a high growth of 218.65% in the year 2012-13 for Andhra Bank and State Bank of India with a growth rate of 102.27 in the year 2015-16. In case of ICICI Bank 110.90% in the year 2015-16 will be highest growth in the value of Net Non Performing Assets.

ASSET QUALITY OF THE BANKS: As per the RBI the banking system in India is self-sufficient & is well funded. The asset quality of the banks is however a concern. Assets of the bank are largely loans such as mortgages, government bonds & cash. A healthy level of asset quality is imperative for survival of the bank. In India’s per the RBI's latest report released on June 17 the banking stability indicator (BSI) that indicates banks financial stability worsened between the quarter of September 2016 to March 2017 due to a deterioration in asset quality and profitability. The report clearly stated that the gross non-performing assets (GNPAs) of some scheduled commercial banks (SCBs) may rise from the existing 9.6 per cent in the month of March

After the 2007-08 economic down-turns, RBI had issued a warning to banks in regards to mounting Non Performing

Banks in India have traditionally been saddled with very high Non-Performing Assets. Banks burdened with huge NPA’s faced uphill tasks in recovering then due to archaic laws and procedures. Realizing the gravity of the situation the government was

One of the most debated issue in Indian Baking Sector is the growing number of Non-Performing Loans and Restructured Loans in the nation along with supremacy of public sector banking. Although, Indian Banks went off the financial crisis with least difficulty but now the situation is alarming. At present, of the total loans disbursed, 3.5% of them accounts as Non-Performing Loans. (India’s public-sector banks are sitting on something unpleasant)