The uneasy relationship
Article Abstract:
The use of outside advice is prevalent in the banking sector. Banks hire consultants for a number of reasons, such as to expedite the completion of special projects, to bring a wider perspective to a job and to gain the necessary skills when hiring full-time employees is not an option. However, hiring outside experts can be expensive, with a top-level expert easily charging about $44,000 for a month's work while a team of consultants could charge about $500,000. Banks are employing different strategies to cope with the growing costs of third-party consultants. Some use in-house consultants, others are adopting strict parameters for the use of outside experts, while there are also those that formulate a code of conduct for both consultants and employees. Other banks review contracts annually and put all projects to bid.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1998
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Re-thinking the credit process
Article Abstract:
Banks must respond to the weakening profits from credit assets and the pressures caused by strong competitions by reducing the cost of bank credit review and simplifying the review process. The review process used in the past years was created to prevent losses brought about by poor credit judgement which is crucial to an organization. However, a review of the traditional process was deemed necessary due to advances in risk analytics and the changing nature of banks's role in credit markets. Moreover, entrants in the industry have been employing credit review processes that are based on external ratings and on an individual's decision which are found to be cost-effective.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1999
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