FINANCIAL MANAGEMENT IN BANKING at IOB

What is FINANCIAL MANAGEMENT IN BANKING?

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

Overview

Maintaining enough supply of funds for the organisation; Ensuring shareholders of the organisation to get good returns on their investment; Optimum and efficient utilization of funds; Creating real and safe investment opportunities to invest in.

Frequently Asked Questions

What is meant by financial management?

In business, financial management is the practice of handling a company’s finances in a way that allows it to be successful and compliant with regulations. That takes both a high-level plan and boots-on-the-ground execution.

What is the role of financial management?

The financial manager’s responsibilities include financial planning, investing (spending money), and financing (raising money). Maximizing the value of the firm is the main goal of the financial manager, whose decisions often have long-term effects.

What are the 3 types of financial management?

Financial Management takes financial decisions under three main categories namely, investment decisions, financing decisions and dividend decisions.

What is difference between finance and financial management?

Business finance deals primarily with rising administering and disbursing funds by privately owned business units operating in non-financial fields of industry whereas Financial management involves planning, organizing, and controlling the financial activities of an organization.

What is financial management example?

Financial management is defined as dealing with and analyzing money and investments for a person or a business to help make business decisions. An example of financial management is the work done by an accounting department for a company.

What is financial management PDF?

Financial management “is the operational activity of a business that is responsible for obtaining and effectivelyutilising the funds necessary for efficient operations”.

What are the four elements of financial management?

There are four recognized elements of financial management: (1) planning, (2) control- ling, (3) organizing and directing, and (4) decision making. The four divisions are based on the purpose of each task.

What are the 4 types of finance?

• Public Finance,
• Personal Finance,
• Corporate Finance and.
• Private Finance.

What is capital or equity?

Equity represents the total amount of money a business owner or shareholder would receive if they liquidated all their assets and paid off the company’s debt. Capital refers only to a company’s financial assets that are available to spend.

What are types of financial management?

The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.

What are the benefits of financial management?

• Reduced errors.
• Ability to measure growth.
• Improved compliance.
• Data and financial transparency.
• Improved productivity.
• Improved planning and strategy.

What balance sheet means?

The term balance sheet refers to a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company’s capital structure.

What are the two main types of finance?

External sources of financing fall into two main categories: equity financing, which is funding given in exchange for partial ownership and future profits; and debt financing, which is money that must be repaid, usually with interest.

Is cash an asset?

Personal assets are things of present or future value owned by an individual or household. Common examples of personal assets include:Cash and cash equivalents, certificates of deposit, checking, and savings accounts, money market accounts, physical cash, Treasury bills.

What is difference between finance and accounting?

The difference between finance and accounting is that accounting focuses on the day-to-day flow of money in and out of a company or institution, whereas finance is a broader term for the management of assets and liabilities and the planning of future growth.