Credit management in simple words is the process of monitoring and collecting payments from the borrowers. A specialized credit management system eases the amount of capital tied up with debtors. The principles of credit management revolve mainly around the concepts of safety, Liquidity, Diversity, and Profitability. The banks all over the world examine following details…
The volatility ratio (VR) is a statistical metric that measures the price changes of a security or market index over a period of time. It’s a technical analysis tool that helps investors and traders. In banking parlance, volatile liabilities are ‘hot’ or ‘unstable’ funds that can disappear from bank’s balance sheet overnight. Demand deposits are…
[The working capital requirement of industrial and trading establishments means the sum of the funds invested by them in various current assets (like raw material (RM), work in process (WIP), finished goods (FG), and the outstanding receivables on goods sold. The working capital facility is extended to a borrower by the banks will depend upon on…
Window dressing in accounting is the practice of manipulating financial statements to make a company appear more financially healthy than it actually is. It’s a short-term strategy that companies use to attract investors, consumers, and clients. Let us study here how a balance sheet can be window dressed. Window dressing in balance-sheet: Date of balance sheet…