1. Do you know what is investment banking?
Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.
2. Explain me what is ‘Fixed' APR and ‘Variable' APR?
‘APR' (Annual Percentage Rate) can be ‘Fixed' or ‘Variable' type. In ‘Fixed APR', the interest rate remains same throughout the term of the loan or mortgage, while in ‘Variable APR' the interest rate will change without notice, based on the other factors like ‘prime rate'.
3. Tell me what is ‘Loan grading'?
The classification of loan based on various risks and parameters like repayment risk, borrower's credit history etc. is known as ‘loan grading'. This system places loan on one to six categories, based on the stability and risk associated with the loan.
4. Explain me what are the different ways you can operate your accounts?
You can operate your bank accounts in different ways like
a) Internet banking
b) Telephone or Mobile banking
c) Branch or Over the counter service
d) ATM ( Automated Teller Machine)
5. Explain what do you mean by co-maker?
A person who signs a note to guarantee the payment of the loan on behalf of the main loan applicant's is known as co-maker or co-signer.
6. Do you know what is (APR) Annual Percentage Rate?
APR stands for Annual Percentage Rate, and it is a charge or interest that the bank imposes on their customers for using their services like loans, credit cards, mortgage loan etc. The interest rate or fees imposed is calculated annually.
7. Explain me what is Cost Of Funds Index (COFI)?
COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Loans.
8. Explain what is ‘Amortization'?
The repayment of the loan by instalment to cover principal amount with interest is known as ‘Amortization'.
9. Tell me as a bank branch manager, what is your management style?
In my experience delegating responsibility and authority is crucial. A team needs to be able to develop and grow as individuals and a whole, not be held back by low expectations or ego.
10. Explain me what do you mean by term ‘Usury'?
When a loan is charged with high interest rate illegally then it is referred as ‘Usury'. Usury rates are generally set by State Law.
