Commercial banks are the principal providers of loan finance to the household sector. Identify five different types of loan finance that a bank offers to individuals. Briefly explain the structure and operation of each of these types of loans.
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Commercial banks are the principal providers of loan finance to the household sector. Identify five different types of loan finance that a bank offers to individuals. Briefly explain the structure and operation of each of these types of loans.
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- Identify the various sources of consumer loans.What type of loan/s these banks offer? Explain how they use this type of loan among their clients.Banking may be subdivided into at least three categories of banks. Match the definitions with the appropriate name. 1. I. A bank that specializes in retail or consumer banking in a local market 2. II. A bank that engages in a complete array of wholesale commercial banking activities and usually also provides retail banking services 3. III. A bank that is located in a financial center and relies on nondeposit or borrowed sources of funds for a significant portion of its liabilities O Money center bank, super-regional bank; community bank O Super-regional bank, money center bank, community bank O Community bank; super-regional bank; money center bank Community bank; money center bank; super-regional bank Money center bank; community bank; super-regional bank
- Customer loans are classified on a Depository Institution (DI)'s balance sheet as Select one: A. liabilities, because the customer may default on the loan. B. assets, because the DI earns servicing fees on the loan. C. assets, because the DI's major asset is its client base. D. assets, because DIs originate and monitor loan portfolios. E. liabilities, because the DI must transfer funds to the borrower at the initiation of the loan.identify and explain four types of services that commercial banks offer. can you explain in own wordsName four ways that banks can calculate interest on loans
- Contractual savings institutions include: a.Commercial Banks b.Credit Unions c.Savings and Loans Associations d.Life Insurance Companieswhich of the following source of finance comes with a line of credit ? a. Credit card b. Mutual Fund c. Commercial Paper d. Supplier credit: Provide example of accounting treatment for transactions related to loan in two situations as following Personal loan Personal guarantees The accounting treatment include the payment of the loan and return the loan to the bank , interest rate , commission
- Describe about the bank loans.Loan structuring is the process of designing a loan to satisfy the financing demands of a business borrower. At the same time, it tries to protect the lender against losses caused by the borrower's refusal to repay the debt, as well as the interest and fees associated with it. Determine the process of credit facilities structuring that takes place in the bank.What are five recommendations for banks to enhance their operations and banking services ?