CLASS # 12 Investment Finance

CLASS # 12 Investment Finance - InvestmentFinance .,present...

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Investment Finance The overlap of the personal and business needs of private bank clients make Investment  Finance a very important product in Private Banking. This convergence of needs, present  the banks with the opportunity to penetrate more deeply into the individual’s finances in  order to enhance the relationship and to make more difficult for the client to exit. Private  banking   clients   may   borrow   against   qualifying   collateral   to   capitalize   on   attractive  investment opportunities, to enhance portfolio yields, to reinvest in or expand their  businesses, to acquire assets, or to free liquidity for personal use. Credit facilities may be  standard or be tailored and large banks make easy to use these virtually anywhere in the  world. Facilities may be structured  on a fixed or floating rate basis in appropriate  currencies, as either loans or lines of credit. Lending to high net worth individuals and their business concerns often take unique  banking characteristics. The majority of private banking lending is fully secured, most of  the time by cash, securities and other assets held by the private bank and therefore,  lending to high net worth individuals is relatively credit risk free. Notwithstanding these  special characteristics,  private  bankers  still have to  look at credits  under the  same  magnifying glass used to evaluate traditional consumer and commercial loans and apply  the Six C’s of credit: 
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CLASS # 12 Investment Finance - InvestmentFinance .,present...

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