Financial Safety Advice

An extremely important aspect in the management of credit risks, is related to risk analysis and review, and the classification of customers.

The quality of the portfolio of loans is the credit risk, which depends primarily on two groups of factors:

- Internal factors that depend directly on its own administration or ability of executives from each company.

- External factors that are independent of management, such as inflation, unanticipated depreciation of local currency, climate disasters, etc.. here appears as a major state basic macroeconomic balances that jeopardize the payment capacity of borrowers.

This risk is measured by net credit losses.

Among the internal factors we can list the following:

Loan volume: the higher loan volume, the greater the losses for them.

Credit policies: the more aggressive credit policy, the higher the credit risk.

Mix of credit: there is much more concentrated lending by companies or sectors, the greater the risk you are assuming. Therefore it has been determined that only 20% of the assets of a financial institution can lend itself to an economic group or person or entity, in order to safeguard the health of banks and financial institutions.

Geographic concentration: economic, number of debtors, economic groups and each group shares: therefore there is no doubt that any kind of portfolio concentration increases the risk of a financial institution. Read the rest of this entry →

Today online services has grown to become indispensable to us all. We can not do without the online services because they make things so much easier!.

The online bank accounts have been created so that transactions are carried out as simply as possible. We can get an online bank account for the vast majority of financial institutions. Both established and virtual banks. A large number of banks offering their customers free online bank accounts.

The only thing necessary for this type of account is to visit the website of the financial institution you want and follow the instructions to set up the account.

There may be online transactions and you can check the balance of the account, all free and easy just need to follow the links that your bank offers, also subscribe to receive your password and then enter the site and go check the movements.

An online bank account saves tedious hours of waiting in the banks, and long lines. It is quite comfortable. Just make several clicks and watch all procedures, transactions and negotiations are resolved much faster. Furthermore there must be concerned about security because the operations are encrypted with sophisticated security systems, which makes your data remains safe.

Another point to consider is the issue of security and independence. If you have an online bank account does not depend on anyone to get the information you want. You can check the amount of money in your balance and can make the process a bank account with online you can get direct deposit, which is really good. This means your paycheck is deposited directly into your bank account online for each payday. You do not need to go to the bank to get money. By accessing your online bank account, you’ll find everything you need at your disposal. Read the rest of this entry →

Those who have problems with a bank or credit should go to departments care entities, and only then, the Bank of Spain. But its resolutions are not binding.

Surely, a relative, friend or yourself has been forced to go to your bank to resolve a problem with a commission unexpectedly, the clearance of the deposit that do not fit in to their calculations, or the mortgage payment surprising that you have applied . Many data that a bank or handled during the day, although sometimes these errors are correctable, at other times the client is helpless before an operation he considers unfair.

For this type of conflict, banking users have a double protection: the defender of the client’s own entity and, where appropriate, the Complaints Service Bank of Spain.

Between 2007 and 2008, the number of queries submitted to the regulatory body increased by 69 percent, to 36,900. And only in the first half of 2009 (latest data update), had over 28,000 complaints, representing an increase of 81 percent over the same period last year. Read the rest of this entry →

At a general level one can distinguish between insurers (that we will discuss in another article) and banks.

In Spain there are four general types of banks:

Private institutions banks are usually publicly traded company, and is used mainly to mortgages and accepting deposits.

Savings. Are virtually identical to the banks except two characteristics:

1. Are public institutions owned by one or more government (municipality, region, county council, etc).
2. They do not pay taxes, but instead are required to distribute at least one third of its profits to works of social interest.

Credit unions. Are very similar to the savings banks, in fact it is often difficult to distinguish because they also adopt the name “box.” The main characteristic of these entities that are not public property, are actually owned by a “financial cooperatives.” Credit unions are often associated with a cooperative association or industrial or sectoral, so for example the Fund is linked to the Lawyers Bar Association. Read the rest of this entry →

It is becoming increasingly clear that the main strategy of banks today is based on “theft” of customers from other branches.

The European banking model, each day is more like the American model where each person chooses a bank for the services is not “because it is what I used all my life.”

So every day we see how the bank deals are aimed primarily at new customers neglecting customers “old.” It is interesting to bank moving according to our needs in order to make the most of our money.

Financial products that can take more advantage of the Bank are currently changing payroll and mortgage abrogation. These are the most important financial institutions as they are a relatively lasting relationship with them and, taking the payroll or mortgage in a particular bank, it is easier for them to consider hiring other related products (like insurance). Read the rest of this entry →