The Principal Objectives of a Bank Sample

The Principal Objectives of a Bank Sample

PART: 2

The principal objectives of a Bank are;

·      to maintain itself as a self-sustaining unit within the ..... Bank Group.

.......... no longer looks to Group deposits to assist in maintaining liquidity levels. In addition the shareholders’ recent practice of not taking a dividend or replacing the dividend with Tier One capital, helps the continued maintenance of the Bank’s capital adequacy.

·       to continue to expand the community bank services and products to those of ...Brazil... and ....Japan.... extraction living in the ..USA...

Since establishing itself as a community bank, lending to residents has increased from some $..... to an estimated &.... by end 2000. This has been funded in part by the taking of some $...... in deposits from the wider ...USA.. public as well as from organic growth within the Bank’s resident deposit base and from the use of non-resident deposits.

·      to help to develop the economic base of the community.

The Bank has helped to sustain the community when other banking institutions were unable or unwilling to make advances to clients. This in part explains the growth in the resident loan book which was enabled by the robust financial health of ............ due to its conservative approach to banking in times of rapid expansion in commercial and personal credit.

·      to seek to introduce new delivery channels to provide faster and more efficient services to  customers, while reducing operational costs.

The Bank now has an Internet banking product which offers basic remote banking services which will be further enhanced over the life of the Plan. In addition the Bank will launch its debit card in early 2003 and later in the year a pre-paid card which will enable its customers for the first time to make use of cash machines and POS services.

·       to aim to at least stabilise the income from remittance products by the introduction of enhanced services.

For the first time since 2001 the income stream from remittance products has not shown a material decline on the previous year. This in part is due to the success of the Euro remittance product introduced in 2002 but given advertising priority over recent months.

·       to seek to supply the needs of non-Spanish speaking ...USA..citizens and in particular those with interests in ...USA... and the .......

·      The Bank successfully promoted notice deposit and one year fixed rate deposit products to the wider ....USA..... public. Interest rates offered were competitive but not top of the market. The Bank ceased advertising these products nationally in November 2000 but will review this in due course

·      to give independent consideration to the borrowing and savings needs of customers from Group banks.

The Bank from time to time receives proposals for granting advances or accepting deposits from clients of Group members. Any such loan proposals are assessed as part of the Banks standard credit application procedures.

In all cases of lending the same credit appraisal procedure is used as that for resident lending.

·      to expand  levels of synergy with other Group companies.

There has been limited success on this other than in the ordinary course of business. Some limited work for the Group’s factoring company is being undertaken.

·       to comply with all the legal and regulatory requirements applying to the areas and services in which the Bank operates including Governance and Compliance.

The recent ...... visit in August 2000 identified a number of deficiencies which are now being addressed under the Risk Mitigation Programme agreed with the FSA and which will be completed in the first quarter of 2001.

·      to maintain prudent credit and operational risk criteria in line with the Bank’s conservative policies.

The $200,000 loss sustained in 2004 due mainly to the non-performance of the $2m ABC Bank bond was very much an exception to the historical level of credit provisions and operational write-offs. The Plan envisages the level of provisions to return to the levels seen in previous years which amount to some 0.09% of loans and $XX of operational losses.

·      to provide high quality personalised services to all customers and abide by the Treating Customers Fairly policy.

Following the ........ visit the monitoring of customers’ opinions of the Bank are being surveyed and this will be further enhanced by more detailed future customer surveys. In addition training courses for staff are being held on Customer Service measures. This will continue over the life of the Plan.

·      to nurture staff to help them maximise their potential.

Improved staff training has been introduced during the final quarter of 2000 and this will be a continuing process. In addition the Bank encourages staff to undertake additional education to further their careers and in some instances, provides assistance with the payment of fees.

·      to maintain good discipline in the area of cost control.

The Bank has a Purchasing and Cost Control Committee chaired by the Financial Controller and a policy of obtaining at least two independent estimates before committing to any large capital expense having made the necessary (and regular annual) credit checks..

·      to provide a return acceptable to the shareholders.

This is an ongoing challenge which the management of the Bank is seeking to achieve.