1 / 13

Managing Non Deposit Liabilities and Other Sources of Borrowed Funds Anwar Harsono S.E., MBA

Harmonious Synergy. Managing Non Deposit Liabilities and Other Sources of Borrowed Funds Anwar Harsono S.E., MBA Management & Financial Accounting Group Head Bank CIMB Niaga. Prasetya Mulya , 10 May 11. 1. Bankwide Balance Sheet Highlight. Consolidated.

armand-gutierrez
Download Presentation

Managing Non Deposit Liabilities and Other Sources of Borrowed Funds Anwar Harsono S.E., MBA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Harmonious Synergy Managing Non Deposit Liabilities and Other Sources of Borrowed Funds Anwar Harsono S.E., MBA Management & Financial Accounting Group Head Bank CIMB Niaga PrasetyaMulya, 10 May 11

  2. 1. Bankwide Balance Sheet Highlight Consolidated

  3. 2. LDR of Top 10 Banks & Industry

  4. 3. Customer Relationship Doctrine • Customer Relationship Doctrine: • the first priority of a lending institution is to make loans to all those customers from whom the lender expects to receive positive net earnings. • The customer relationship doctrine spawned the liquidity management strategy known as ‘Liability Management’. • Liability Management consists of buying funds, mainly from other financial institutions, in order to cover good quality credit requests and satisfy any legal reserve requirements on deposits and other borrowings that law or regulation may require. • The hallmark of liability management are: • Buying funds by selling liabilities in the money market • Using price (the interest rate offered) as the control lever to regulate the volume and timing of incoming funds.

  5. 4. Source of Loanable Funds • Source of Loanable Funds: • Customer Deposits • Non Customer Deposit Liabilities • Short-term • Long-term • Equity

  6. 5. Customer Deposit Composition – Top 10 & Industry

  7. 6. Non Customer Deposit Composition – Top 10 & Industry

  8. 7. Non Customer Deposit Liabilities

  9. 8. Choosing among Alternative Non Customer Deposit Sources • How much in total must be borrowed from these sources to meet funding needs? • Which non customer deposit sources are best, given the borrowing institution’s goals, at any given moment in time? • Need to consider: • The relative costs of raising funds from each non customer deposit sources • The risk (volatility and dependability) of each funding sources • The length of time (maturity or term) for which funds are needed • The size of the institution that requires non customer deposit funds • Regulations limiting the use of alternative fund sources

  10. 9. Non Deposit Funds that Impact to Capital Right Issues Subordinated Debt Issuance

  11. 10. Cost of Loanable Funds VS

  12. Net Interest Income and NIM – Top 10 Banks NIM Ratio QoQ (%) 11

  13. Harmonious Synergy Thank You

More Related