Cần giúp đỡ làm ass Banking law của Mark

1) What is due diligence and why is it important? (500)
2) What is term sheet and why is it important (500)
3) Please explain the different between (a) an overdraft, (b) a term loan and (c) a revolving credit facility. In which circumstances are each of these appropriate?

trên đây là 3 câu hỏi dành cho ass , ai có ý kiến gì liên quan đến 3 vấn đề này xin gợi ý hoặc giả có sẵn bài mẫu từ các người đi trước xin post lên để mình có thể hoàn thành bài ass trong an lành . Thank các bác , các chú . các cô , các chị đã đọc

Chú terry với stephen học law rồi vô làm kia

e học business law chứ đâu có bít banking law, sẽ nghiên cứu và help nếu có thể

cai de` nay` lam` roi`=)) de~ ma`. co' trong slide het'

thoi giup' do~ ban. cau 1 lun ne`, con` cau 2,3 tu. lam` nhe' co trong silde va` cai tẻm sheet ong^ thay` dua het roi`
1/ What is due diligence and why is it important?

As a bank, there are many ways to get profit from its services. Loans are one of the main ways in almost banks. With providing loans, banks will get interest from its loan’s amount. The higher the loan’s amount, the higher interest the bank get. But a sucessful bank means that borrowers pay back their loans. Otherwise, if borrowers can not pay back their loans, banks will absolutely get trouble. To solve that problem, banks must know every information about their borrowers to assess the credit risk. And that is what due diligence is called.

Once a customer requests a loan, bank officers analyze all available information to determine whether the loan meets the bank’s risk-return objectives. Credit analysis is essentially default risk analysis in which a loan officer attempts to evaluate a borrower’s ability and willingness to repay.

Traditionally, key risk factors have been classified according to the five Cs of good credit:
• Character: refers to the borrower’s honesty and trustworthiness
• Capital: refers to the borrower’s wealth position measured by financial soundness and market standing
• Capacity: involves both the borrower’s legal standing and management’s expertise in maintaining operations so the firm or individual can repay its debt obligations.
• Condition: refer to the economic environment, production, and distribution factors influencing a firm’s operations
• Collateral: is the lender’s secondary source of repayment or security in the case of default
And five Cs of bad credit, representing things to guard against to help prevent problems:
• Complacency: refers to the tendency to assume that because things were good in the past they will be good in the future
• Carelessness: a lack of current financial information, and a lack of protective covenants in the loan agreement
• Communication ineffectiveness: refers to when a bank’s credit objectives and policies are not clearly communicated
• Contingencies: refer to lenders’ tendency to play down or ignore circumstances in which a loan might default. The focus is on trying to make a deal work rather than identifying downside risk
• Competition: Involves following competitors’ behavior rather than maintaining the bank’s own credit standards.
After analyzing a loan request, then evaluate:
- Character of the borrower and quality of data provided: an individual’s honesty, integrity, and work ethic typically evidence commitment. For a business, commitment is evidenced by the owners and senior management. The quality of data used in the analysis is critical. Audited financial statements are preferred because accounting rules are well established.
- Use of loan proceeds: should be used for legitimate business operating purposes, including seasonal and permanent working capital needs, the purchase of depreciable assets, physical plant expansion, etc. Speculative asset purchases and debts should be avoided.
- How much does the borrower need? The loan amount: lender should not only estimate how much the borrower will need today but also in the future. Failing to recognize that lending only a portion of the funds needed may actually reduce the borrower’s ability to pay the loan back.
- The primary source and timing of repayment: loans are repaid from cash flow. The four basic sources of cash flow are the liquidation of assets, cash flow from normal operations, new debt issues, and new equity issues. The primary source of repayment can determine the risk of the loan. The general rule is not to rely on the acquired asset or underlying collateral as the primary source of repayment
- Secondary source of repayment: Collateral: banks look to collateral as a secondary source of repayment when primary cash flow are insufficient to meet debt service requirements.
(Copyright: Lee)
Dung` copy nhe' ban=.=' tu` tren do rut ra y' chinh' thoi. day la` cau^ 1 cua~ tui lam` hoi truoc =]] ong~ bit' mat(. tui do, copy het ong~ chui~ tui thi` ....

conmeonguys là ai '.'

-.- tui la` ban cua terryywildwolf. cung~ hoc o~ Raffles nhung ben Sin:P hoi truoc cung~ hoc advance dip o~ Vn

À sắp tới mình có qua bên đó có gì mình gặp hỏi 1 vài vấn đề về trường bên đó nhé

truong` ben nay` thi`... ko co ji` phan` nan` nhung... giong' nhu noi tra tan^' SV (neu' hoc = Anh) ( ,con` = cua~ Uc' thi` do~ hon*

ok, thank bạn conmeoguys nhiều , câu 1 và 2 đã làm xong , còn câu 3 , ai có ý gì thì up lên nữa nha. cám ơn đã nhiệt tình đóng góp

) anh Trí mà bưng nguyên cái này vào 100% là fail đó
heeeee

FOR NEW VISION!
kám ơn mọi ng đã nhiệt liệt hưởng ứng New Vision
( Spam)

stephen Diep la ai thế?

Là thằng Quang Meo Meo hay còn gọi là Quang Bất Lực

anh comeonguys có thể gợi ý giúp em câu 2 với câu 3 dc ko, chứ câu 1 e làm dc rồi >"<