Commercial Bank

Topics: Bank, Loan, Credit Pages: 7 (2077 words) Published: July 28, 2013
Commercial banking activity
BLF is an old established leading bank in Corporate Banking and an active professional provider of quality services to the Lebanese and regional markets. Our specialized team covers all segments of the business and is fully dedicated and committed to present our clients with needed advisory and adapted solutions to their requirements.

Commercial banking activities are carried out through two main commercial divisions: the small and middle market banking division and the corporate banking division: * the small and middle market banking division covers small or medium-sized businesses, with a credit exposure of up to USD 1.5 million and / or an annual turnover of less than USD 10 million. * the corporate banking division covers largest clients in terms of sales turnover or facilities extended. Corporate clients are currently defined as those with a sales turnover exceeding USD 10 million and / or whose banking facilities at the bank exceed USD 1.5 million.

Corporate division is divided into five units focusing on different economic sectors: the general trading and food retail unit, the general contracting and real estate unit, the international trading, services and insurance unit, the industries unit; and the syndicated, subsidized and special loans unit. In addition to the primary products and services, the small and middle market banking division and the corporate banking division provide advisory services. Such advisory services include, among others, the promotion of a wide array of financing programs such as Kafalat subsidized loans, Central Bank of Lebanon subsidized loans, Arab Trade Financing Program borrowings and European Investment Bank credit products. Through these services we aim to reduce the financing costs to our customers and afford them with easier access to export markets, thereby developing sustained customer relationships.

Some of the major activities/services provided by banks are: a. Checking/Current account
b. Savings accounts
c. ATM Cards
d. Check Books
e. Deposit Accounts
f. Loans
g. Credit Cards etc

The Objectives of Commercial Banking
When you deposit a paycheck into your savings account, you may wonder what the bank has to gain by this action. Access to your money provides commercial banks with the means to achieve various objectives. Because banks are authorized to loan out more than the amount of all deposits, your money is critical to accomplishing these goals. Earn Profit

* Banks are the same as any other commercial enterprise: Their primary goal is to make money. The largest commercial banks in the United States accomplish this task beautifully: A 2010 Federal Reserve bulletin indicates that large commercial banks in 2009 earned as much as they did pre-mortgage meltdown because of revenues from other activities such as investing. Because smaller commercial banks don't engage in as much revenue-bearing investment activities, they primarily rely on revenue from providing financial services. Mitigate Risk

* Banks want to earn as much money as possible but at the lowest risk possible. This objective is accomplished in various ways, most of which involve assessing statistical computations. For instance, bankers put the numbers divulged on a consumer's credit card application or a person's mortgage application into a software program; the results indicate if the consumer is accepted or rejected. In this case, inputs that assess risk include income, credit scores, debt-to-credit ratio and amounts in savings accounts. Risk analysis sometimes requires forecasting: An analyst may predict movements in the euro based on global events such as labor strikes in Spain and decide to sell the currency for dollars. Along with managing risks internally, an analysis from the Wharton School of the University of Pennsylvania states that commercial banks mitigate risks by transferring them to other parties and avoiding them...
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