Portfolio analysis in the banking sector

Passive management simply tracks a market index, commonly referred to as indexing or index investing.

Portfolio analysis in the banking sector

Portfolio analysis in the banking sector

Summary Management Summary The two types of customer profitability common in retail banking include current customer profitability and lifetime value. Customer profitability analysis enhances a bank's ability to 1 acquire new, profitable customers, 2 cross-sell profitably to existing customers, 3 provide differentiated service to customers based on their profitability, 4 migrate customers to more profitable products and services and 5 make pricing determinations that will make products more profitable.

Before undertaking customer profitability analysis, banks must ensure that they are ready to calculate customer profitability. Banks must 1 establish buy-in from the various business units affected by customer profitability analysis, 2 develop consistent, accurate and fair cost and revenue allocations, 3 develop good specifications prior to implementation and 4 ensure that all necessary staff are ready to undertake customer profitability analysis.

The largest banks were more likely to calculate current customer profitability than smaller banks. Current customer profitability was used primarily to support product development, pricing determinations, the identification of customers for migration to more profitable products and services and the establishment of customer segments.

However, the resulting activities supported by customer profitability analysis were not very effective.

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Few of banks were calculating lifetime value, although many of the largest banks expected to be doing so by year-end Many smaller banks will be developing customer profitability analyses for the first time.

Regardless of bank size, most banks that currently calculate customer profitability will need to increase the effectiveness of the support for the resulting applications. They will need to do this by incorporating more product information into the analysis and using actual costs and transaction- level behavior in their analyses.

There are several considerations for banksIn the banking sector, these regulations revolve around storage, access, analysis of client data in adherence with the regulatory requirements.

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The improvement of the information quality for existing client profiles while having effective systems in place to capture necessary information for new clients is ingrained in the regulatory requirements. Portfolio Analysis In The Banking Sector. INDUSTRY ANALYSIS An analysis of banking sector in India Introduction The liberalization brought in has swept the economic landscape of thecountry.

The automobile industry is one of the invisible faces of plombier-nemours.com the people who were used to many years of Ambassador cars with various.

Portfolio analysis in the banking sector

Nov 19,  · PORTFOLIO SELECTION: during this phase portfolio is selected on the basis of input from previous phase portfolio analysis. But the main target of the portfolio selection is to build a portfolio that offer highest returns at a given risk.

Portfolio Analysis – Indian Banking Sector Observations from GE Matrix Market Attractivess Retail Banking Retail banking lies at number three in terms of market attractiveness followed by treasury and agribusiness banking.

Banking Industry Outlook | Deloitte US

Banking & Finance: The Banking and Finance training department provides specialized training in cooperation with qualified instructors in the banking and financial industry in Egypt, in accordance with the regulations issued by the Central Bank of Egypt.

banking industry. KEYWORDS: Risk Management, Banking Sector, Credit risk, Market risk, Operating Risk, Gab Analysis, Value at Risk (VatR) _____ INTRODUCTION Risk is defined as anything that can create hindrances in the way of achievement of certain objectives.

Egyptian Banking Institute | Banking and Finance