How is the US banking system different from the European system? - ANS -Europe has 6 to 9 banks per nation while the US has about 7000
-Over 90% are community banks.
Briefly explain the basic idea of how banks earn a profit. - ANS Primary income comes from loans; banks by money ...
How is the US banking system different from the European system? - ANS -Europe has 6
to 9 banks per nation while the US has about 7000
-Over 90% are community banks.
Briefly explain the basic idea of how banks earn a profit. - ANS Primary income comes
from loans; banks by money at one price and sell it at a higher price.
What is meant by saying that loan growth is cyclical? - ANS it goes through cycles
What are some of the important items that a loan officer needs to understand about a potential
or current client's business? - ANS -how the business is managed -what the business'
products are -how the products/services are made or provided
-what the local and national economic prognosis is and how it will affect the business.
What are some of the personal characteristics that make up a good business banker? - ANS
-Ability to communicate
-Ability to listen & observe**
-Have empathy
-Positive attitude
-Ethical
-Analytical ability & math aptitude
-Risk Taker**
-Common sense
-Motivation to sell
Explain the roles of owners (shareholders) - ANS Select the board of directors
Explain the roles of the board of directors - ANS -Sets policies
- Reviews Overall operation of bank
-Selects CEO/Management team
Explain the roles of bank management. - ANS -Implements policies
-establishes procedures to implement policies
-day-to-day management of bank
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