Where is the Value?
If a company adds value to my life.
When I am willing to pay a company?
Milk
What do cows make for cereal?
This department makes sure our loans are properly documented and entered correctly in the system.
What is loan operations?
This line of business takes consumer and commercial deposits and makes consumer and commercial loans.
What is the Community Bank?
Interest Income less Interest Expense
What is net interest income?
This is what banks charge their customers for loans.
What is interest income?
This department makes sure our deposit accounts are properly documented and entered into our deposit system correctly.
What is deposit operations?
This line of business makes loans to help people buy homes.
What is the Mortgage Company?
Interest Rate is 6% and it must be paid back in 5 years in even monthly payments.
What are the terms of the loan?
By serving as a financial intermediary.
How do banks make money?
This department makes sure that our income statements and balance sheets are accurate.
What is the accounting department?
This line of business helps consumers and business manage their risk.
What is insurance?
A loan for a home purchase.
What is a mortgage?
Helping individuals and companies make payments.
How do banks make money?
This department makes sure employees get paid on time and they manage our benefits.
What is the Human Resource Department?
This line of business helps wealthy individuals manage their money.
What is Wealth Management?
When banks serve as a link between people to help them perform successful financial transactions.
What is a financial intermediary?
What banks pay their customers for deposits.
What is interest expense?
This department sets policy for our loan portfolio and ensures that the bank is compliant with all of the bank regulations.
What is the risk department?
Income the bank makes from charging for certain services such as payments.
What is non-interest income?