The Management Of Chicago Bank

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Contents Abstract 2 Introduction 3 Proposal 4 Loan 4 Amortization 5 Balloon Payment 5 Loan-to-Value 6 Abstract 'Consortium Bank '- “A subsidiary bank created by numerous banks. A consortium bank is created to fund a specific project (such as providing affordable homeownership for low- and moderate-income home buyers) or to execute a specific deal (such as selling loans in the loan syndication market)”. (Investopedia, 2009) The Consortium generally strengthens the individual bank’s assets to meet their objectives. All member banks have equal or proportionate ownership shares – the member with the highest percentage of shares has the leading authority. After the bank 's objective is met the consortium typically dissolves. This…show more content…
All these banks came together so as to invest in the Real Estate Sector that too in the East Lansing area. The main focus of our Consortium is to finance inner city and mixed-used projects. Inner City Projects are basically for the redevelopment of the city so as to improve the urban infrastructure, financial services, land tenure regularization, enhanced community capacity and improvements in public safety. (Jackson, 2015) Mixed-Used Projects are any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections. (Jackson, 2015) So basically we are interested in investing in any such project that is in the well fare of the city of East Lansing as well as its residents. It can be a hospital, a residential complex, a commercial office building, a school or any such project that enhances the real estate market of the city and should be for the wellness of the residents of the city. In this report further I am going to discuss about the Loan policies of the consortium for the Real Estate Developers. Why is a Consortium needed? A syndicate bank is formed by multiple banks, for a particular purpose of financing a specific project that is too big for an individual bank to finance on its own. Under this procedure the
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