Sources and Uses of Funds of Foreign Banks

This technique is sometimes called the common size analysis. It also shows the size of each category on the balance sheet. For example the individual asset, liability, and equity items are the different items listed on sheet. The next method is the ratio analysis. This

Second, the restriction of investment in fixed assets can be obstacle of the business growth. The property/sales ratio was stable around 20% from 1993-95 along with sales growth (Exhibit 2). It implies that the company kept investing to fixed asset. Therefore, I would ask bank to change this requirement as; “If the company use the funds for business unrelated purpose, the lender has right to call immediately.”

The assets show the type of resource that the organization use; the other side shows the type of resources, and how much money it needs to take care of expenses. In Figure 1, it shows an example of a balance sheet for ABC.

Briefly explain the rise and fall of LTCM. What was the moral hazard issue the fed was worried about? How did they try and get around the moral hazard issue? What specifically was the Fed's role in the bailout? What roles specifically did Bear play and not play in the LTCM's life and death?

Common-Size Statements -- reveal changes in the relative importance of each financial statement item. All amounts are redefined in terms of common-size percents.

All term deposits ensure the investor receives profits from their financial savings, but why was this term deposit account selected? This term deposit account offered an exceptional fixed interest rate, which was 2.90% per annum for 5 years – this was higher than most of its competitors. Although some financial institutions offered a higher interest rate (3.10% per annum), Commonwealth Bank is a highly reputable bank and unlike other financial institutions, their term deposits have no additional fees, except for an avoidable penalty. Moreover, Commonwealth Bank is located in most shopping centres, unlike independent financial institutions. The investor can simply go to one of their banks to invest money into their term deposit account, which

The two areas that will be focused on for the purpose of this analysis is based on a financial aspect and a

1. What does this statement of cash flow tell you about the sources and uses of the company? The cash flow statement gives me a view between the balance sheet and income statement. The main sources of income come from the regular sales and the sales of stock.

A brief description of financial ratios that is used by most financial analysts are used to evaluate the financial infrastructure of applying to Central (BMC), also will provide an overview that will cover the organization’s ability to meet their financial obligations. According to the company balance sheet (see Appendix A.) the discussions on the profitability trends that may be favorable, or unfavorable are based on the ratio analysis. The financial ratio analysis is the methods used, which businesses can make predictions based on the future performance of the company. According to the

“Statement of financial position identifies the resources controlled by the business and the source of the funds that were used to acquire the assets”( A.Benedict & B.Elliot)

Due to this users of the financial statements identifies the merits and demerits of the entity, and also liquidity and solvency including financing.

There are several basic organizations through which a foreign banking organization such as D. Beers’ Bank of South Africa may engage in banking activities or business to varying degrees in the United States under federal law. Options for entity formation include: representative offices, agencies, branches, Edge Act and Agreement international banking corporations, commercial lending companies, and subsidiaries of bank or financial holding companies. Under California law the offices of foreign banks are divided into classes and ranked roughly according to the activities that each class may engage in. These categories are: representative offices, non-depository agencies, depository agencies, limited branch offices, wholesale branch offices, and retail branch offices. D. Beers has narrowed down that he wants a branch or subsidiary, but within those types of bank charters there are further distinctions

Financial statements mainly include profit and loss account and balance sheet. Profit and loss account lists out all the expenses made by the firm and revenue earned over a period of time. Balance sheet depicts the financial position of the firm at a particular point of time. While fund flow statement is complimentary to both balance sheet and profit and loss account, it brings a clear idea about

• Examples of financial assets: U.S. Treasury bonds, Foreign bond,.Home mortgage loan,Common stock. Financial assets are referred to as debt instruments in the case of: U.S. Treasury bonds, Corporate bonds, Municipal bonds. Financial assets represent a residual claim in the case of Common stock. The process of valuing financial assets include: Estimating the cash flows, Determining the appropriate discount rate, Discounting the expected cash flows. the following risks are associated with realizing the expected cash flows: Default risk, Purchasing power risk, Foreign-exchange risk. The principal economic functions of financial assets include: The transfer of funds from those with surplus funds to those who need funds, The transfer of funds

over at least the last six years. The recent acceleration in the projected growth rate for