DOCSLIB.ORG

Fitch Rating 2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Fitch Rating 2020 Banks Universal Commercial Banks Germany Akbank AG Ratings Foreign Currency Long-Term IDR B+ Short-Term IDR B Support Rating 4 Sovereign Risk Key Rating Drivers Long-Term Foreign-Currency AAA IDR Institutional Support Drives Ratings: Akbank AG’s (AAG) Issuer Default Ratings (IDRs) are Long-Term Local-Currency IDR AAA equalised with those of its Turkish parent, AKBANK T.A.S. (Akbank, B+/Negative), reflecting Country Ceiling potential shareholder support given it is a core subsidiary of Akbank. Our view of support also considers the bank’s common branding, full ownership, integration with its parent and shared Outlooks management/board members. AAG operates in three main business segments – corporate Long-Term Foreign-Currency Negative banking, retail banking (deposit account services) and treasury operations. IDR Sovereign Long-Term Foreign- Stable No Viability Rating Assigned: Fitch Ratings has not assigned a Viability Rating to AAG as it does Currency IDR not believe it can be analysed on a standalone basis. This is because AAG leverages off its Sovereign Long-Term Local- Stable parent’s franchise in Turkey, generating a large portion of its business through parent referrals. Currency IDR Nevertheless, the bank’s funding is mainly sourced locally from online deposits. AAG accounted Applicable Criteria for 7% of Akbank’s assets at end-3Q20 and 6% of its net income. Bank Rating Criteria (February 2020) Mainly Turkish Risk, Corporate Focus: AAG’s credit risk was split 51% to Turkey-based borrowers at end-3Q20 (primarily blue-chip companies, but with exposure to Turkish risk) with Related Research the rest to borrowers in Germany and Europe. About 80% of loans are to companies that also Fitch Ratings 2021 Outlook: Turkish Banks have exposure on its parent’s books. Loans are mainly in euros and US dollars, heightening the (December 2020) credit risk in the case of Turkish corporates, given the potential impact of depreciation of the Turkish Banks Datawatch 3Q20 Turkish lira on their ability to repay their debt. (December 2020) Turkish Banks' External Debt and FC Strong Asset Quality: AAG has not recorded a non-performing loan to date. However, its loan Liquidity: End-3Q20 (November 2020) book is highly concentrated. The top 25 loans comprised 76% of total loans at end-3Q20, Policy Settings Are Key to Assessing Turkey although a moderate share of loans (about a quarter of total loans) was cash-collateralised. Central Bank Change (November 2020) Operating environment challenges in the markets in which the bank operates may heighten Fitch Revises Outlook on Turkey to Negative; risks to asset quality. Affirms at 'BB-' (August 2020) Fitch Affirms 6 Large Turkish Banks at 'B+'; Largely Deposit Funded: AAG is almost entirely funded by deposits (9M20: 96% of total Downgrades Halk to 'B' (May 2020) funding). Retail deposits make up about 38% of total deposits and have increased significantly in recent years. Concentration risk is high, due to significant deposits from German corporates. The maturity profile of the deposit base is adequate, with 60% at end-3Q20 having contractual Financial Data maturities of over one year. Of those, 16% were sight deposits, which constitute a cheap funding Akbank AG source. 30 Sep 2020 31 Dec 2019 Solid Capitalisation: AAG’s capital base consists entirely of core Tier 1 capital. At end-3Q20, its Total assets 3,190.8 4,947.8 total capital ratio (21.7%) was comfortably above its 13% regulatory minimum. AAG’s (USDm) capitalisation is adequate given its solid record of asset quality, fairly low growth due to the Total assets 3,735.8 4,404.3 (EURm) bank’s cautious approach on the back of heightened risks in Turkish operating environment and zero dividend policy. Consequently, no capital increases are budgeted in the near term. Total equity 761.7 723.6 (EURm) Reasonable Profitability: AAG reported a solid 6.9% return-on-equity (annualised) at end- 3Q20 supported by its low cost/income ratio (16% in 9M20), due to its lean organisational structure. Analysts Markus Glabach Rating Sensitivities +49 69 768076 195 [email protected] Parent Support: AAG’s ratings are sensitive to a change in Akbank’s IDRs or a reduction in its parent’s propensity to provide support, for example due to a change of strategy that results in a Cem Bilgin diminution of AAG’s strategic importance to the group. +44 20 3530 1230 [email protected] Rating Report │ 17 December 2020 fitchratings.com 1 Banks Universal Commercial Banks Germany Institutional Support Assessment Bar Chart Legend Vertical bars – VR range of Rating Factor Bar Colors – Influence on final VR Higher influence Moderate influence Lower influence Bar Arrows – Rating Factor Outlook Positive Negative Evolving Stable Institutional Support Drives Ratings AAG’s ratings are equalised with those of Akbank, reflecting its strategic importance to its parent but also its ownership, integration and common branding, while the Negative Outlook on the Long-Term IDR mirrors that on its parent. The bank’s Deposit Ratings are also in line with its support-driven IDRs. In Fitch’s opinion, AAG's debt buffers do not afford any obvious incremental probability of default benefit over and above the support benefit factored into its IDRs. Significant Changes Weaker Economic Outlook AAG’s credit profile is correlated to the Turkish market, given that most of its business is concentrated there. Downside risks have been heightened by the coronavirus pandemic and lockdown measures in Turkey amid market volatility and lira depreciation (the lira fell by 24% against the US dollar in 11M20). Fitch has raised its 2020 forecast for Turkey’s GDP to growth of 0.2%, followed by a moderately weaker 3.5% in 2021. Exposure to Germany is also significant at 32% of lending at end-3Q20. Fitch forecasts Germany’s GDP to contract by 5.6 % in 2020, followed by growth of 5.0% in 2021, which is a milder course than other European economies. Germany has launched comprehensive fiscal measures in the form of large aid programmes to support companies and households affected by the crisis. These measures, together with regulatory forbearance relating to the classification of crisis-driven non-performing loans, have mitigated negative rating migration and risk-weighted asset inflation, limiting banks’ provisioning needs in 1H20. We expect this to also be the case at end-2020, but expect credit quality to deteriorate in 2021 as some vulnerable borrowers will not fully recover, and many corporates and SMEs are likely to emerge durably weaker from the crisis. Akbank AG Rating Report │ 17 December 2020 fitchratings.com 2 Banks Universal Commercial Banks Germany Brief Company Summary Niche Focus on Turkish Corporates AAG had just EUR3.7 billion in assets at end-3Q20 and specialises in European (largely German) and Turkish corporate lending. It focuses on providing medium-term working-capital and trade finance facilities to corporates typically with direct or indirect business links to the Turkish market. Accordingly, 51% of its credit risk was Turkey-related at end-3Q20, while its remaining exposure mainly related to Germany and other European countries. AAG has three main business segments – corporate banking and financial institutions, retail banking (deposits only, no retail lending) and treasury. The bank’s main focus in corporate banking is on large and medium-sized Turkish companies, subsidiaries of Turkish companies in Germany and central Europe or companies that have regular business dealings with Turkey (import/export), many of which also have a business relationship with Akbank. AAG does not have any branches and operates solely from its head office in Frankfurt, while collecting deposits via internet banking, supporting its low headcount of 52 employees at end- 2019 and low cost base. AAG is a member of the German voluntary private depositor protection scheme (Einlagensicherungsfonds des Bundesverband deutscher Banken), which ensures that liabilities to non-banks placed with the bank (including all customer deposits) are insured up to a level equal to 15% of AAG’s equity in the case of each depositor. This enables AAG to raise low-cost institutional deposits, which constitute its main funding source (end-3Q20: about 98% of customer deposits). Management and Strategy AAG and Akbank are closely integrated in terms of management. AAG has seven supervisory board members, all drawn from its parent. The chairman of the supervisory board is Akbank’s executive vice president for corporate and investment banking at the parent bank and a further six members hold executive positions at Akbank. AAG’s business strategy is fairly simple and the bank has an adequate record in meeting its strategic and financial objectives. Its strategy focuses on expanding its corporate and trade finance operations, while seeking to diversify away from Turkish-related business by increasing non-Turkish risk. However, the bank will continue to extend short-term and overnight lira loans to subsidiaries of blue-chip multinational companies in Turkey. It will be challenging for AAG to achieve diversification away from Turkish risk in the short term, considering the stagnation in the eurozone and ensuing low appetite for loans. AAG expects the structure of its balance sheet to remain stable. The bank will continue to fund itself mainly by means of corporate and retail deposits. Risk Appetite A significant portion of AAG’s loan operations are sourced through its parent. AAG’s risk limits are fully consolidated into those of the Akbank group and its risk management policies and procedures are integrated and supervised by Akbank. AAG's asset size contracted by 15% in euro terms in 9M20 following a 2% contraction in 2019 on the back of deterioration in the Turkish operating environment and AAG’s ensuing more selective approach to extending loans. Fitch believes AAG will maintain its cautious stance towards growth.
Load more

Recommended publications
  • Spring 2020 Core Banking
    2020 SPRING CUSTOMER SUCCESS REPORT CORE BANKING SOFTWARE CATEGORY CORE BANKING SOFTWARE OVERVIEW Today, banks do more than just taking deposits and providing loans. They offer a wide range of services and products, and their activities are termed Core Banking, which is managed by a centralized platform that enables customers to do transactions from any branch. CORE stands for "Centralized Online Real-time Exchange," which allows a bank’s branches to access programs from centralized data centers. Besides retail customers, core banking also addresses the needs of corporate clients to deliver a complete banking system. With a CBS, banks can improve their operations to address industry consolidation and customer demands, eliminate mistakes due to multiple entries, easily launch new financial products and make changes to existing ones, seamlessly merge self-service operations and back office data, and more. 2 Customer Success Report Ranking Methodology The FeaturedCustomers Customer Success ranking is based on data from our customer reference Customer Success Report platform, market presence, web presence, & social Award Levels presence as well as additional data aggregated from online sources and media properties. Our ranking engine applies an algorithm to all data collected to calculate the final Customer Success Report rankings. The overall Customer Success ranking is a weighted average based on 3 parts: Market Leader Content Score is affected by: Vendor on FeaturedCustomers.com with 1. Total # of vendor generated customer substantial customer base & market share. references (case studies, success stories, Leaders have the highest ratio of customer testimonials, and customer videos) success content, content quality score, and social media presence relative to company size.
    [Show full text]
  • The Premier Bank Limited
    Evaluating Customer Satisfaction in General Banking of The Premier Bank Limited Evaluating Customer Satisfaction in General Banking of The Premier Bank Limited Submitted To Mr. Muhammad Intisar Alam Senior Lecturer BRAC Business School BRAC University Submitted By Fahmid Jahan Nayeem ID- 08204063 BRAC Business School BRAC University Submitted in Partial Fulfillment for the Degree Bachelor of Business Administration (BBA) BRAC Business School BRAC University Date of Submission: December 17, 2012 Letter of Transmittal December 17, 2012 Mr. Muhammad Intisar Alam Senior Lecturer BRAC Business School BRAC University 66 Mohakhali, Dhaka 1212. Subject: Submission of Internship Report on “Evaluating Customer Satisfaction in General Banking of The Premier Bank limited” Dear Sir, It is a great pleasure to submit the report on “Evaluating Customer Satisfaction in General Banking of The Premier Bank limited.” which was assigned by you for the completion of my internship program. This report is intended to fulfill the essential requirement for the successful completion of BBA program. All the information is done with utmost sincerity and honesty. The observations and result of my study are embodied on this report. I have tried my best to match my theoretical knowledge with the practical field. I also confess that my report has some limitations because I am still student and I am in a process of developing my skills. So I hope that you will be kind enough to consider the limitations of this report. I would like to express my gratitude for the effort you have provided during my internship with all your valuable suggestions and directions which have helped a lot to enhance the quality of this report.
    [Show full text]
  • Vivek College of Commerce
    Vivek college of commerce CHAPTER 1 1.1 INTRODUCTION Core Banking Solutions is new jargon frequently used in banking circles. The advancement in technology especially internet and information technology has led to new way of doing business in banking. The technologies have cut down time, working simultaneously on different issues and increased efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working. Now many advanced features like regulatory requirements and other specialized services like share (stock) trading are being provided. Core banking solutions are very helpful to SME industries. Core Banking Solution (CBS) is networking of branches, which enables customers to operate their accounts. And avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The Core Banking Page 1 Vivek college of commerce technologies have cut sown time, working simultaneously on different issues and increased efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions.
    [Show full text]
  • Annual Report 2015
    AKBANK AG ANNUAL REPORT 2015 REPORT ANNUAL AG AKBANK ANNUAL REPORT 2015 CONTENTS CONTACT INFORMATION 01 AKBANK AG IN BRIEF AKBANK AG - MANAGEMENT BOARD 04 FINANCIAL HIGHLIGHTS 08 SABANCI GROUP IN BRIEF Name Title 09 AKBANK T.A.Ş. IN BRIEF K. Banu Özcan CEO and Chairman of the Managing Board 14 VISION, MISSION AND STRATEGIES F. Hakan Elman Executive Vice President and Member of the Managing Board 16 MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 17 MESSAGE FROM THE CEO AKBANK AG - DEPARTMENTS 20 REPORT OF THE SUPERVISORY BOARD 22 SUPERVISORY BOARD Name Group 23 REPORT OF THE AUDIT COMMITTEE Mustafa Korkmaz Senior Vice President – Treasury 26 AUDITORS REPORT Murat Gündoğdu Vice President – Corporate Banking 27 REPORT OF THE MANAGING BOARD FOR BUSINESS YEAR 2015 R. Didem Öget Senior Vice President & CFO – Financial Coordination & Risk Management 46 REGULATORY ENVIRONMENT Osman Yüce Senior Vice President – Information Technologies & Operations 49 CORPORATE BANKING & FINANCIAL INSTITUTIONS Haluk Soma Vice President – Credits 51 RETAIL BANKING 52 TREASURY HEAD OFFICE 53 CREDITS 54 OPERATIONS & INFORMATION TECHNOLOGY Akbank AG 55 RISK MANAGEMENT GOVERNANCE Taunustor 1 59 FINANCIAL STATEMENTS FOR THE BUSINESS YEAR FROM 1 JANUARY TO 31 DECEMBER 2015 60310 Frankfurt am Main Germany 63 NOTES TO THE FINANCIAL STATEMENTS FOR THE BUSINESS YEAR FROM T: +49 69 29717100 1 JANUARY TO 31 DECEMBER 2015 F: +49 69 29717188 CONTACT INFORMATION www.akbank.de AKBANK AG IN BRIEF 1 AKBANK AG 2015 ANNUAL REPORT Akbank AG is the successor institution of the Upon this merger, Akbank T.A.Ş. has become German branch of Akbank T.A.Ş.
    [Show full text]
  • South Indian Bank Ltd
    Experience Next Generation Banking Investor Presentation May - 2016 Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation
    [Show full text]
  • SIB Hello Booklet.Pdf
    Greetings and welcome to South Indian Bank. Dear Sir/Madam, First of all let me thank you for choosing SIB as your preferred bank. We understand that, in this competitive market, while you had other choices, you have preferred us with great expectations, to meet your banking needs. We assure you that we have rededicated ourselves, to make you delighted and comfortable in banking, more than your expectations. Incorporated in 1929, SIB, during its 86 years of service to the nation, has been able to project itself as a vibrant, fast growing, service oriented and trend setting financial intermediary in the banking sector. We at SIB will continue to provide a secure, agile, dynamic and conducive banking environment to the customers, with commitment to values, ethics and unshaken confidence. Leveraging the advantage of a CORE banking network of over 823 branches spread across 30 States and Union Territories, we humbly strive to deploy the best technology, standards, processes and procedures, where customer convenience is of great importance. This Hand Book titled ‘Hello...’ contains certain key contact details, which will be of great help to you, while availing various services and products. For your ready reference, we have included the details of various personal banking products and services, being offered by your bank. User guides on ATM, Internet Banking and Mobile Banking services are also included herewith. Kindly get acquainted with the products and services and preserve this Hand Book for future reference. You may please visit our website www.southindianbank.com for further updates, terms & conditions, service charges etc. With your valuable suggestions, ideas and patronage, we are confident to emerge as the most preferred bank in the country.
    [Show full text]
  • Banking Is a Technology-Driven Business, and We Understand That A
    Banking is a technology‐driven business, and we understand that a cutting‐edge IT platform is a competitive advantage, a key driver of operational efficiency, and more importantly, a vital tool that will enable us to provide you with faster, better, and more responsive service—a definite PLUS! China Bank has acquired a new and more powerful core banking system for significantly greater computing power and enhanced capability and flexibility to improve service quality, optimize customer experience, manage risk and regulatory compliance more effectively, and easily adapt to changing customer demands and market trends. We are rolling out this new core banking system in all China Bank branches soon. Please go through this FAQ and know that we are doing everything we can to upgrade to the new system as seamlessly and efficiently as possible, so you, our valued client, will feel the PLUS factor. GENERAL 1. What is a core banking system? A core banking system is the deposit and loans system of a bank—the IT backbone of banking operations. 2. What will change? Essentially, the new core banking system will make transaction processing faster and more efficient. But what will be evident to you are the following: a) New passbooks for all passbook accountholders. For China Check Plus accountholders, the check number of Encashed/Inward Clearing/Debit On‐Us Checks will now be included in the passbook transaction details for easier account monitoring/reconciliation; b) New certificate of time deposit (CTD) for rolled over placements and new time deposit placements; and c) 12‐digit account numbers for new deposit accounts and 15‐digit account numbers for new loan accounts 3.
    [Show full text]
  • Unit – 4 Core Banking Solution Core Banking Solution
    Unit – 4 Core Banking Solution Core Banking Solution C H CBS BASICS AND A P T ITS WORKING E 1 R METHODOLOGY LEARNING OBJECTIVES What is Core Banking Solution Technology behind CBS Comparison of TBA (Total Branch Automation) with CBS Data Centre and Network Connectivity Functions of IT Department under CBS environment Modules of CBS Operations of CBS Branch Security and Controls at Data Centre and Branch 1.1 WHAT IS CORE BANKING SOLUTION? Core Banking Solution (CBS) is centralized Banking Application software. It has several components which have been designed to meet the demands of the banking industry. Core Banking Solution is supported by advanced technology infrastructure. It has high standards of business functionality. These factors provide the banks a competitive edge. There are different vendors in the market providing CBS. The software, (CBS) is developed by different software development companies like Infosys, TCS, Ifl ex Solutions etc., Each of the software has different names: Name of the Vendor : Software Infosys : Finacle TCS : Quartz Ifl ex Solutions : Flex Cube Apart from the above, some institutions have developed the software in house. The software resides in a Central application server which is located in the Central Offi ce Data Centre. The application software is not available at the branch but can be accessed from the branches. Along with Data base servers and other servers, application server is located at the Central Data Centre. 112 INFORMATION TECHNOLOGY CBS Basics and Its Working Methodology All of the branches of the bank are connected to the Central Data Centre as shown in Fig.1.1.1 Fig.
    [Show full text]
  • The Future of Retail Banking and the Case for Core Transformation Contents Introduction
    The Future of Retail Banking and the Case for Core Transformation Contents Introduction This paper argues that the widespread uptake of disruptive new technologies is exacerbating the pressures facing retail banking today, thereby driving a fundamental change in the structure of the industry i.e. digital- driven disintermediation of the banking value chain. Most European banks are not equipped for this change Introduction 03 because of the limitations of their aging legacy systems. Although banks have been investing in digital propositions in the front-end, they have been reluctant to embark on core systems replacement. At Temenos, The Technology Mega-Trends in Retail Banking 04 we believe that true digital transformation requires developing a coherent front-to-back proposition, built on a future-proof, modern core banking platform rather than on a complex web of legacy applications. Without Increasing Pressures on the Retail Banking Industry 06 a modern core, it is not possible to fulfill the emerging needs of the industry and to meet the heavy regulatory Structural Change - Disintermediation of the Retail Banking Value Chain 08 burden in an affordable way. The good news is that core banking transformations can now be executed easily and with acceptable levels of risk, because of the sophistication of packaged software now available The Retail Banking Model of the Future 09 and the lessons learnt and proven benefits delivered from successful transformations all over the world. The Current Reality 14 The Case for Core Transformation 15 Core Banking Transformations – Why (Not)? 17 Conclusion 19 About theAuthor 19 17% 6m 99.9% <15 Increase in RoE Customers STP Minutes By replacing core banking Onboarded in first year of Supporting seamless.
    [Show full text]
  • St. Mary's University Faculty of Business Department of Accounting
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by IDS OpenDocs St. Mary's University Faculty of Business Department of Accounting The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye June, 2014 SMU Addis Ababa The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye A senior essay Submitted to the Department of Accounting Business Faculty St.Mary's University in Partial Fulfillment of the Requirement for the Degree of Bachelor of ARTS in Accounting June, 2014 SMU Addis Ababa St Mary's University The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye Faculty of Business Department of Accounting Approved by the committee of Examiners Department Head signature Advisor signature Internal Examiner signature External Examiner signature June, 2014 SMU Addis Ababa DECLARATION We the undersigned declare that this senior essay is our original work prepared under the guidance of Gebregziabher Hagos. All source of material used for the manuscript have acknowledgment. Name Signature Addis Alemayehu ________________________ Samuel Mengesha ________________________ Sara Tsehaye ________________________ Place of submission Addis Ababa Date of Submission June, 2014 Acknowledgements Glory to God and his mother for giving us courage and strength throughout our educational life. Special thanks go to our advisor Ato Gebregziabher Hagos for his constructive suggestions, guidance, and great advice in the writing of this senior paper, as well as for his devoting precious time in reading the paper.
    [Show full text]
  • South Indian Bank Achieves New Milestone One Lakh Crore Business
    Experience Next Generation Banking Investor Presentation October - 2016 Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation
    [Show full text]
  • Implementation of Core Banking Systems (Cbs) in the Banks in India – with Special Reference to Urban Co-Operative Banks (Ucb)
    Vol.3 No.1 January 2015 ISSN: 2320-4168 IMPLEMENTATION OF CORE BANKING SYSTEMS (CBS) IN THE BANKS IN INDIA – WITH SPECIAL REFERENCE TO URBAN CO-OPERATIVE BANKS (UCB) J. Shifa Fathima Assistant Professor, Department of Commerce, Madurai Institute of Social Sciences, Madurai Abstract This paper gives an overview of Implementation of Core Banking Systems in the Banks in India. This study is based on Secondary data. A bank is an institution which deals with money and credit. It accepts deposit from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another. It is a financial institution that creates demand deposits, that is deposit account which are subject to withdrawal by the owner on demand and subject to transfer to a third party by means of a cheque, in fact a modern bank performs such a variety of functions that is difficult to give a precise and general definition of it. CBS stand for Core Banking System or Core Banking Solution. Core Banking System is another way of saying the core functions of a bank. These functions represent the essential (core) business of banking. Because of the plethora of services banks now provide, it is easy to forget that the root of banking is the accepting deposits and lending money the definition of core banking may have been mudded by the emergence of package computer solution which combine core banking functions, with other elements of a bank’s operation but at the most basic level core banking manages financial transactions and their impact on the accounts of each customers.
    [Show full text]