A Report On Bank Of Maharashtra & Different Areas Of Banking For Summer Internship @

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Reports Prepared & Compiled By :-

Manish Ranjan Singh BVDU, IMED, Pune

MBA (General) Division B Roll No. - 65

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CONTENTS

INTRODUCTION OF STUDY...4
1.1 1.2 1.3 BACKGROUND OF STUDIES PURPOSE OF THE STUDIES RESEARCH METHODOLOGY

INTRODUCTION OF BANK OF MAHARASHTRA...................5

2.1 MISSION

BANK OF MAHARASHTRA BACKGROUND...........................6

3.1 3.2 3.3 3.4 3.5 THE BEGINNING NEED FELT FOR AN INDEPENDENT BANK FOR MAHARASHTRA MILESTONE IN THE JOURNEY FOR NATION BUILDING KEY PERSON IN BANK OF MAHARASHTRA HIGHLIGHTS OF BANK OF MAHARASHTRA

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OVERVIEW OF BANKING..........................................................12 AREAS OF BANKING..................................................................13

5.1 5.2 5.3 5.4 5.5 5.6 5.7 CORPORATE FINANCE RISK MANAGEMENT OPERATIONS HUMAN RESOURCES FINANCE LEGAL AND COMPLIANCE TRANSACTION BANKING
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5.8 5.9 5.10 5.11 5.12

SALES AND TRADING ASSET MANAGEMENT WEALTH MANAGEMENT TREASURY TECHNOLOGY

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5.13

INTRODUCTION OF STUDY
1.1 Background of Studies

As part of the academic requirement for completing MBA (Finance and Marketing) Master of Business Administration of the students are required to undergo two months of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about Bank Of Maharashtra. BOM was established in 1935 and since then, it has expended its network, becoming the growing commercial Bank of the country. It offers different products of services to its customers. Purpose of the Studies The main of the study in hand is to gather relevant information to compile internship report on Bank Of Maharashtra and understand the overview of Banking, explore the career opportunities in Banking. To observe, analyze and interpret the relevant data competently and in a useful manner. To work practically in an organization. To develop interpersonal communication.

Research Methodology The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while discussion with bank officials and faculty members. Primary Data 1. Personal Observation 2. Informal Discussions

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Secondary Data 1. Internet 2. Journals 3. Magazine

INTRODUCTION OF BANK OF MAHARASHTRA

Bank of Maharashtra is the premier bank of Maharashtra, operating in the country of India. Registered on 16th Sept 1935 with an authorized capital of Rs 10.00 lakh and commenced business on 8th Feb 1936. Known as a common man's bank since inception, its initial help to small units has given birth to many of today's industrial houses. After nationalization in 1969, the bank expanded rapidly. It now has 1375 branches (as of 31 March 2008) all over India. The Bank has the largest network of branches by any Public sector bank in the state of Maharashtra. The Bank was founded by a group of visionaries led by the Late V. G. Kale and the Late D. K. Sathe and registered as a Banking Company on 16 September, 1935 at Pune. Today, Bank of Maharashtra has over 12 million customers across the length and breadth of the country served through 1577 branches in 23 states and 2 union territories As on 30.09.2011 Bank has 1564 Branches in all over India. The Bank attained autonomous status in 1998. It helps in giving more and more services with simplified procedures without intervention of Government. Bank is the convener of State level Bankers committee. Bank offers Depository services and Demat facilities at 131 branches. Bank has a tie up with LIC of India and United India Insurance company for sale of Insurance policies. All the branches of the Bank are fully computerized. Employees like Brajesh Mishra, posted in South Ex branch are doing excellent work for Bank.

Mission
To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing shareholders' and employees' value while moving towards global resence. To ensure quick and efficient response to customer expectations.
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To innovate products and services to cater to diverse sections of society. To adopt latest technology on a continuous basis. To build proactive, professional and involved workforce. To enhance the shareholders wealth through best practices and corporate governance. To enter international arena through branch network.

BANK OF MAHARASHTRA BACKGROUND

Banking is one of the most sensitive businesses all over the world. Banks play an important role in the economy and are considered as the backbone of an economy in every country and India is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production and distribution of public finance. India has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. Today, the banking sector is providing financial solutions to the masses and is growing and becoming a solid partner in the development of the Indian economy, this growth potential has seen different acquisitions in the banking sector. The Beginning Maharashtra has a long history of commercial activity since ages because of its strategic location in Indian sub continent and its large natural resources. Maharashtra has been a progressive region and the Banking activity was also started in this region quite early. Historically speaking, the Bank of Bombay established in 1840 was the first Commercial Bank in Maharashtra. However, the first commercial bank set up in Maharashtra outside Mumbai was The Poona Bank established in 1889 at Pune followed by The Deccan Bank in 1890 and the Bombay Banking Company in 1898.

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Need felt for an Independent Bank for Maharashtra The Mahratta Chamber of Commerce (MCC) was established in Poona in 1934 and its Founder Secretary Shri A.R.Bhat was a great visionary. Shri Bhat initiated for a comprehensive review of banking services available in the region through the special issue of Kesari news paper released in memory of Lokmanya Tilak within a few months of establishment of MCC. He ensured that his friend, Shri V. P.Varde, considered as a doyen of cooperative movement, wrote an article on the necessity of a separate bank for Maharashtra, thus launching a public discussion on the subject. While there was no noticeable response to the article of Shri Varde, Shri A R Bhat kept on discussing the subject with leaders in Trade and Industry. Shri Bhat ensured that Mahratta Chamber and its Directors took up the issue and held a Conference on Business and Industry in Poona on behalf of the MCC in February1935. Shri Bhat pushed the proposal for formation of a bank and succeeded in getting the following resolution adopted by the conference:
"For providing capital to the trade and industry in Maharashtra, it is essential to establish a Joint Stock commercial bank. The Mahratta Chamber is, therefore, requested to make all the necessary enquiries in that behalf and take appropriate steps for floating such a bank. The business community in Maharashtra is urged to support such an effort. "

Outbreak of the First World War leading to great depression took a heavy toll on banks in India. Between 1914 and 1935 as many as 380 banks failed in the country out of which 54 were based in Bombay province. The impact of these failures was felt more in Maharashtra region because certain banks known for a long time were also closed down. The effects of great depression started fading and new enterprises began emerging with new hopes in all spheres of economy, including banking. The Swadeshi movement of the first decade of the 20th Century gave stimulus to the establishment of a number of commercial banks under Indian Management in Maharashtra. The MCC formed a sub-committee consisting of Sarvashri V.G.Kale, D.K.Sathe, N.G.Pawar, G.D.Apte and A.R.Bhat to work out the details.

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The first meeting of the committee was held on 19 May 1935 in the conference room of the Kesari Mahratta office and besides the committee members, prominent personalities from the City like Shri Babasaheb Kamat, the then President of the MCCI, J S.Karandikar, Rajabhau Godbole, Govindrao Pandit, Damuanna Potdar, S.R.Sardesai, Baburao Gokhale, and N.N. Kshirsagar among others participated in deliberations. Another meeting of the sub committee with wider public representation was followed on 27 May 1935 in the meeting hall of Kesari Mahratta office and decisions on matters like the number of Directors on the Board of the proposed bank (maximum to be 11 members), Amount of each share (to be Rs.50/-) and primary condition for becoming a Director (to hold a minimum of 500 shares) were taken. The Bank was formally registered under the Indian Companies Act, on the auspicious day of 16 September 1935. The Memorandum and Articles of the Bank were signed by following 19 promoters (Sarvashri): Board of Directors 1. Prof.V G Kale 2. D K Sathe 3. B M Gupte 4. N. G. Pawar 5. V T Ranade 6. V P Varde 7. M R Joshi 8. S G Marathe 9. Raghunathrao Sohoni 10. D V Potdar Witness Signatory: Shri G D Apte Others 1. A R Bhat 2. S M Joshi 3. B S Kamat 4. S R Rajguru 5. R N Abhyankar 6. T V Sane 7. D G Bapat 8. G S Marathe 9. D D Chitale

Milestones in the journey for nation building:

Registered on 16-09-1935
Commitment stated in the prospectus issued on 21-10-1935: 9|Page

Steadily to spread its business operations all over Maharashtra and as opportunity allows, outside that area offering varied services to the general public while trying to be useful to trade, commerce and industry consistently with high standards of safety and efficiency

1936 1938 1940 1944 1946

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Commenced operations on 08-02-1936 in Pune Second branch of the bank was opened in 1938 at Fort, Bombay. Third branch came up at Deccan Gymkhana, Pune Status as Scheduled Bank obtained Deposits crossed Rs One crore mark Formed fully owned subsidiary, The Maharashtra Executor & Trustee Company First branch outside Maharashtra opened in Hubli (Mysore Starte, Now Karnataka) Expansion to AP: Hyderabad branch opened Expansion to Goa: Panjim Branch opened Expansion to Madhya Pradesh: Indore branch opened Entered in Gujarat: Baroda branch opened Nationalised alongwith 13 other Banks Entry in Delhi by opening Karolbagh branch on 19-12-69 Deposit base crossed Rs. 100 Crore mark Marathwada Grameena Bank, first RRB established on 26-08-1976 New Head Office building inaugurated by Hon'ble Prime Minister of India Shri. Morarji Desai Deposits crossed the figure of Rs.500 Crores Mahabank Agricultural Research and Rural Development Foundation, registered as a public trust, was established for undertaking research and extension work and to provide more extensive services to farmers. 500th branch in Maharashtra state was opened at the hands of the then Prime Minister, Mrs Indira Gandhi at Nariman Point, Mumbai. First Advanced Ledger Posting Machine (ALPM) was installed at the branch. Golden Jubilee Year Celebrations launched at the hands of Dr. Manmohan Singh, Governor Reserve Bank of India Thane Grameena Bank sponsored The 1000th branch of the Bank was inaugurated at Indira vasahat, Bibwewadi, Pune at the auspicious hands of Dr.Shankar Dayal Sharma, the Honourable Vice President of India "Mahabank Farmer Credit Card " was launched Entered in to Domestic Credit Card Business Main Frame Computer installed Became member of the SWIFT Diamond Jubilee Celebrations - Dr C Rangarajan the RBI Governor was the Chief Guest Deposits crossed Rs 5000 crore mark Moved into A category from the earlier C category. Autonomy obtained Deposits crossed Rs 10000 crore mark Public Issue of Shares 24% owned by Public Listed in BSE and NSE 10 | P a g e

1949 1963 1966 1969 1974 1976 1978 1979

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1985

1986 1987 1991

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1995 1996 2000 2004

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2005 2006 2009 2010

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Bancassurance and Mutual Fund distribution business started Crossed total business level of Rs.50,000 Crore Branch CBS Project started Entered in to 75th year of dedicated service to the Nation Adopted 75 underdeveloped villages for integrated overall development 100% CBS of branches achieved Total Business crossed Rs One lakh crore Opened 76 branches in the Platinum Year taking the total to 1506

Key Person in Bank Of Maharashtra

Shri. A. S. Banerjee
Chief General Manager

Shri. B. K. Piparaiya
General Manager - Corporate Credit & International Banking

Shri. V. E. Dalvi
General Manager : Integrated Risk Management

Shri. M. C. Goyal
General Manager - IT, Alternate Business Channels and Rajbhasha

Shri. S. D. Arya
General Manager - Credit-Priority, Mid Corporate Credit, Financial Inclusion, RRB, LBS & SLBC

Shri P S Vengurlekar
General Manager, Recovery, Credit Monitoring and Legal Services

Shri. Dilip. R. Harnagle

General Manager & Chief Vigilance Officer

Shri. R. Parthasarathy
General Manager, Financial Management, Accounts & Investor Services

Highlights Of Bank Of Maharashtra

Autonomy secured in the year 1998 continues. Total business more than Rs. 91000.00 crore of which total deposits more than Rs. 54400 crore and Gross advances more than Rs. 36600 crore as of 30.9.2009 Branch network comprises of 1433 branches spread over 22 states and 2 union territories. CBS Branches Bank has migrated 831 branches under CBS as against 773 branches as on 31.03.2009 and 798 branches as on 30.06.2009 ATM Network Bank has 345 ATMs. Bank has installed 11 Biometric ATMs. Card base crosses 10 lakh Mahabank Insta International Visa Debit Card Mahabank Intenational Debit Card is issued in collaboration with VISA
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ATM Card along with PIN is given to the customer as Welcome Kit at the time of opening of the current and SB account in all CBS branches. The customer can start using ATM Insta card after 36 hours from date of issue. ( 36000 Insta Cards are issued since July 09) Utility Bill Payment through Internet Banking Facility. The customers can do on line shopping / e-commerce and utility bill payment transaction through Internet Banking facility.( 37000 Customer are using Internet Banking facility) Maha e-Statement Customers can get their statement of account on registering their e-mail id and desired frequency of statement with the Bank. Straight Through Processing (STP) STP of NEFT/ RTGS transactions has been implemented for instant processing of inward and outward remittances through RTGS and NEFT. (800 branches are offering RTGS/NEFT facility) Specialised branches: S M E branches - 14 Agro High-Tech branches - 4 Industrial Finance branches - 2 Overseas branches - 2 Treasury & international Banking - 1 Pension Branch -1 Govt Business Branch - 1 Bank has 28 FEX centers to handle FEX business. Toll Free telephones at 11 major Metro centers. The bank is shouldering the responsibility of lead bank in six districts viz. Satara, Pune, Thane, Nasik, Aurangabad and Jalna. Our bank is also convening State Level Bankers Committee and various development issues are taken up to implement the state credit plan and achieving the targets under various Government sponsored schemes. The Bank has set up a Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF), which is engaged in providing Credit Plus services to the farmers in specific specialised fields like commercial dairy, Emu farming, sericulture, organic farming, etc. The Rural Development Centers at Bhigwan and Hadapsar in Pune District undertake various lab to land programs on improved technologies. A full fledged soil-testing lab is being set up for the benefit of the farmers to go in for high-tech agriculture. To provide activity specific training to educated unemployed youth, Bank has set up five Mahabank Self Employment Training Institutes (MSETI) at Pune, Aurangabad, Nagpur, Nasik & Amravati for providing training to rural youth for enabling them to acquire skills for self-employment. The Bank has floated a subsidiary company- The Maharashtra Executor & Trustee Company Ltd. (METCO) which undertakes Trustee Business, Property Management and Tax Consultancy as well. Bank is the Convenor for Town Official Language Implementation Committee (TOLIC) at Mumbai, Pune & Solapur. The Bank secured the First Prize for better implementation of
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Hindi in both A and B Region and the Fourth Prize for implementation of Hindi in C Region under Reserve Bank of India Rajbhasha Shield Scheme for the year 2007-2008. The Bank also secured the Second Prize under R.B.I. Bi-lingual House Magazine Competition for the year 20

OVERVIEW OF BANKING
Banks provide services for those who want to borrow, lend and invest. This is putting it as simply as possible; actually the specifics of how they do it are complex and hugely diverse. Banks are large and complex organizations. Their clients range from individuals and institutions, all the way up to the governments and central banks of entire countries.Banks don't produce physical things. They are not in the manufacturing business. The work they do simply involves money their money, their clients' money: borrowing it, lending it, and many other related activities that are explained in this site. It's an important undertaking. The movement of capital handled by banks allows economies to grow and prosper. Businesses and governments cannot be completely selfsufficient. They need money to operate, and banks act as intermediaries (like middlemen') between the suppliers of funds and users of funds. There are four broad categories of banking:
Retail Banking dealing directly with small businesses and individuals Commercial or Corporate Banking offering banking facilities to medium-to-large businesses Private Banking a one-to-one service for rich individuals Investment Banking generally related to helping clients raise capital, often by investing in the financial markets.

Large, global banks tend to deal in most or all of these. The ones that cover everything are generally known as universal banks. This means that just some of the services they provide include:
Advising corporations on mergers and acquisitions Handling the finances of wealthy individuals Trading on the stock markets Developing and selling new financial products, such as structured packages of investments Designing and implementing new finance-related technologies.

But as large institutions, they must also carefully manage their own internal processes, including:
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Handling their own finances, not just those of their clients (a much bigger task than it sounds) Nurturing and guiding new talent Preparing for and managing any risks that arise from trading their own assets Responding to an ever-changing and increasingly complex regulatory environment.

AREAS OF BANKING
There are many areas, many specialisms and many roles. Banking is an exciting but very varied industry, so making a decision about which career path to take might seem a little overwhelming. It doesnt help that the names of each area can differ by bank. Also there are overlaps in disciplines. In some banks a specialism could be part of one area; in others it might sit somewhere completely different. Weve tried to select the most recognized names, and provided an easy-to-understand account of what they do. This page is just a summary of each area. They all have their own dedicated section, just a click away.

CORPORATE FINANCE
Corporate Finance is one of the well known areas of investment banking. Corporate Finance is all about helping corporate clients build their businesses by providing financial and strategic advice and products. These clients tend to be large blue chip companies. The services Corporate Finance offers are vast and wide. Its more than just advice and introductions to investors. Heres a snapshot of some of those services: Underwriting equity and fixed-income offerings this is all about raising money from issuing
shares and debts in the company Acting on behalf of and advising clients when they buy or merge with another firm Identifying and securing new business deals Helping to develop financial strategies.

Roles Within Corporate Finance Roles within Corporate Finance vary by bank because they are based around the needs of the bank's clients. As with many other divisions there are both general and more specialist roles. In general, the roles fall into two broad categories: client teams and product teams. Client teams This is a specialist area of the business, with senior professionals looking after clients in a specific region or industry. These are the people directly responsible for working with clients and growing
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their businesses, by using their skills, experience and expert knowledge of their market and industry. Client teams are sometimes referred to as working in 'client coverage'. Client coverage bankers identify a client's needs and then call on product specialists for advice on which products and services would be right for the client. They then act as a bridge between the two, maintaining the client relationship throughout. Product teams Product teams, as the name suggests, are the ones with the extensive product knowledge. They work with client coverage teams to advise on a range of services. Let's look at some of those now:
Mergers and Acquisitions (M&A) Buying another firm is a critical moment for any company. M&A specialists provide strategic and financial advice regarding potential target companies, pricing and valuation, and how to integrate the companies post-acquisition. Structured Financing In brief, structured finance is an alternative option to a standard business loan (which might be borrowed against existing assets). Structured finance is instead borrowed against a company's cash-flow history for example - along with the evidence that the company will therefore be able to pay it back. It could be for anything from planes, ships, or property to infrastructure, renewable energy and other assets like patents and private equity. Equity Capital Markets In simple terms this is the function of the bank that helps companies structure, buy, sell and issue shares. Equity capital is very dependent on the information provided by companies regarding their financial situation and estimates of future performance. Debt Capital Markets Debt capital is the finance or assets that a business raises by taking out a loan. A Corporate Finance team that specializes in dept capital will use innovative and complex structures to raise funds for organizations that have limited access to more traditional capital sources.

RISK MANAGEMENT
Theres a surprisingly large number of risks associated with running a business. Risk Management is an essential part of helping the bank grow while keeping an eye on the potential consequences if something goes wrong. This could be external factors such as a recession or stock market crash, or internal factors such as IT failure. There are all kinds of risks in business and these need to be identified and minimized.
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Once it has identified the associated risks, say with a transaction or business deal, it will decide whether or not the risk is too high to approve. If it is, the bank is basically not allowed to proceed with that piece of business. Roles Within Risk Management

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Credit Risk Management This is a banks internal credit approval and monitoring function. It looks at how risky transactions are going to be, and whether theyre really worth that risk. For example, it will set the levels of risk-adjustment on credit arrangements in other words, lending to a company with a poor credit rating will probably mean setting a high level of interest on the loan (to cover the inherent risk). This is a really important element of the banks business - managing the credit risk is vital. Market Risk Management A large part of what an investment bank does is buy and sell securities on the stock markets (securities is the collective name for bonds and shares). The price of a security on the market fluctuates daily. If the price goes down, a loss will be made. But there are many types of security available and trading across different countries is complex. So there are different kinds of risk that must be taken into account: Equity risk that stock prices will change Interest rate risk that interest rates will change Currency risk that foreign exchange rates will change Commodity risk that the price of a commodity will change. The Market Risk Management team has the complicated but hugely important job of assessing the effects of these market movements. They will focus very carefully on the activities of the trading floor and work with the traders and senior managers to help calculate the associated risks of the trades and decisions they are making. Market risk is caused by external events: for example, major environmental disasters, political upheaval, even terrorist threats. All of these things can cause huge fluctuations on the financial markets. Investment Risk Management If the bank acquires another company there will be a whole new set of risks associated with the new company. All of these risks need analyzing, and that is one of the tasks of the investment risk manager. The new company will also need to have its risk processes aligned with the parent company for example if one of them has a different way of dealing with risk than the other. Operational Risk Management This department covers the risks associated with the day-to-day running of the bank. There are many different types of operational risk. Here are some of them: Internal fraud tax evasion, bribery External fraud theft of information, hacking Employment practices & workplace safety health & safety, discrimination Clients, products & business practice product defects, improper trade Damage to physical assets vandalism, natural disasters Business disruption & systems failures including software or hardware failures Execution, delivery & process management accounting errors, data entry errors.

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Clearly the bank should do what it can do to minimize all of these risks, but the larger the company the more likely it is that these kinds of problem will occur. Having identified what potential risks there are, it is the job of the risk manager to calculate the likelihood of them happening and the potential cost if they did happen. That information will be vital to any future success of the business.Sometimes considered a sub-sector of Operational Risk, sometimes on its own, is Reputational Risk. This relates to how a company is portrayed or its perceived trustworthiness. A business might not be found guilty of a crime, yet damage to its reputation can be caused by many factors: a story in the news, a customer backlash, perhaps its association with another company. A damaged reputation can ultimately lead to a loss in revenue.

OPERATIONS
The popular image of investment banking is one of slick, fast-moving dealmakers. But deals can only work if the right processes are in place to back them up. Thats where Operations comes in. A core function of Operations is to control and manage the processing of trades made by the various other divisions of the bank chiefly Sales and Trading. And with such a huge number of trades being made every second of the day, it has a complex but incredibly important role to play in the successful functioning of the bank. Operations is a non-revenue making division but it couldnt be more vital. In helping to streamline the processes used by the front office (the revenue generating part of the bank) it can save the bank billions. Operations also oversees many regulatory requirements of the bank, as well as resolving discrepancies in trades. Much of its work also needs to take place 24 hours a day 7 days a week, in different markets and different time zones. In many instances, therefore, Operations adopts a follow-the-sun model to ensure processes are able to work continuously around the globe. In summary, it shouldnt be surprising that Operations is often viewed as the engine of the bank. It works across the whole company to meet the operational challenges of processing transactions, settling trades and satisfying the needs of colleagues and clients across multiple time zones in all major currencies. In a large bank this is a huge undertaking with responsibility for millions of transactions every day. Areas In Operations Typically, Operations is split into a number of different areas covering a range of responsibilities. Operations as a career provides with the opportunities that are very broad in a fast-paced and challenging field. Here are some of the operational functions we should expect to find in a bank: Trade Processing and Support This is fundamental. Without it, there would be no way for a bank or its clients to make money from trading on the financial markets.Various processes are required to take each transaction or transfer-of-ownership (in the case of securities such as bonds and shares) to completion. Firstly funds must be cleared. Next the confirmation of ownership must be confirmed - or settled. Finally the transaction needs to be reconciled, which means its documented and reported. All of these vital
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tasks, sometimes collectively referred to as Trading Operations can fall within the remit of Operations. Operations Control One part of Operations Control might be checking data is being effectively communicated from the front office to other areas of the bank. Another might be the measuring and reporting of any operational risks that could arise within the systems in place. In a similar realm is Process Management. On the technical side there will be overlap with Technology but this area involves trouble-shooting problems with internal systems, and looking to streamline the process of settling transactions. The aim is to make processes slicker, faster and ultimately more profitable to the bank. Monitoring and Reporting Reporting doesnt stop with Operations Control. Supervising and servicing activities within the bank, while reporting on daily transactions, is another key area. Client Services Operations is often referred to as the back office of a bank, which supports the client facing departments in the front office (such as Sales and Trading, Corporate Finance and Wealth Management) and other banks (who purchase their services). But there are still vital client related roles for Operations to undertake. These can be speaking directly to clients to help resolve transaction settlements at their end, offering advice and support, and providing information to clients about whats happening with their trades.

HUMAN RESOURCES
The banking industry is highly competitive. The key to a banks success is having the best people. In fact, people are the main commodity. Banks dont manufacture anything; they offer a service. Human Resources is core to the success of the bank. Its the HR team that hires, motivates, and develops the people that offer that service. HR is responsible for people issues across the whole company. This includes things like:
Making sure the business is employing the best people, helping develop those people - and importantly ensuring they dont leave! Working with other divisions such as Legal and Compliance to help set company rules - and in some cases communicating those rules to staff Ensuring employees are treated fairly, that they know what their rights are, and that there are measures in place when something goes wrong Helping to develop people strategies to meet the goals of different parts of the business for example: succession planning for senior people or structuring teams to ensure they have the right type of skills and experience.

Roles Within HR in banking

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Its wrong to think that HR is only about dealing directly with people face-to-face. Theres far more to it than just doing interviews, being a shoulder to cry on, and dealing with complaints about colleagues. In most banks youll find theres an opportunity to work in either a general role or to specialize. Sub-Areas of HR Recruitment / resourcing / talent acquisition Its not just about the specific gaps in the company that need to be filled with new recruits. Its about putting a long-term strategy in place to make sure the right people are coming in to move the company in the direction it needs to go. Its about managing how the bank is perceived as an employer (preferably as a very good one). Remember - the best people dont just have to sell themselves to you; the bank has to sell itself to them. Its about helping the company to attract the best and most appropriate talent possible, people that will fit with the company culture, from the brightest graduates to the most senior managers. And its the responsibility of the recruitment team to do just that. Development Once people have been recruited, their skills need to develop over time. If theyre new to banking they need to be trained. If theyve already got years of experience they can still improve. Thats the key goal of someone who works in development: devising training and development programs, helping people learn and grow in their careers. As the company moves forward, they also need to move forward. Reward or compensation and benefits The salary is accompanied by perks, holiday entitlements, health care, even bike-to-work schemes. Rewarding staff for their work is important. Nowadays there is a focus not just on the standard things like pensions but also the softer side, helping to ensure employees get a good work life balance. And company policies for this type of thing need to be put in place and managed over time. Employee relations Its not always good news. Sometimes staff members have complaints - or someone complains about them. There could be disciplinary issues that need resolving. Maybe someone is performing badly at work. Perhaps theyve stolen more than just a stapler from the stationary cupboard. Dealing with staff grievances can be difficult, so this area of HR is often about ensuring policies are in place to make the process as smooth as possible. Business partners / strategic partners / HR advisors These roles provide consultancy on HR matters to senior business managers within the bank. They usually have responsibility for certain divisions, tending to look at the bigger strategic picture rather than day-to-day HR covered by the other areas. Issues they might consider are: size of workforce versus profitability, succession planning for senior positions, or reviewing compensation practices for a certain business area.
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As with many areas of the banking sector, hiring trends reflect the situation within the market. This can mean bolstering staff when times are good and scaling down when times are tough. A change to HR that has been happening gradually over the past few years is that many banks are now outsourcing more of the administrative HR activity. These might be areas relating to employee pay, employee data, and the paperwork involved in new employee orientation (referred to as onboarding). This enables the central HR function to focus on more strategic matters.

FINANCE
Well, all big companies have a Finance department, and investment banks are no different. Finance is usually referred to as being in the middle office. Not the front office - thats where the divisions that generate profits for the bank are, such as Sales and Trading, and Corporate Finance. And not in the back office where youll find Technology and Operations. Finance is firmly in the middle. Why? Because it plays a vital middle role between all other divisions. Here are some of its basic tasks: General company accounting Producing the companys financial statement these are the documents presented to shareholders about all of the firms finances Analyzing the company's performance in terms of profits and losses Auditing this might involve producing internal reports, or liaising with external auditors.

One key role that the Finance division also has is making sure the bank stays within the law. It helps the bank conform to its own internal rules and regulations. It basically ensures that integrity is maintained, because integrity is crucial to the banks ability to do business. Roles Within Finance in Investment Banking Roles within the Finance division vary greatly according to each bank and the type of services they provide. Some of them cross paths with other areas of the bank such as Risk Management and Compliance. Here are some of the services that Finance gets involved in: Business Control Business Control is all about making sure the bank operates in a profitable way. To this end it will work closely with all other areas of the bank to develop new products and processes that ensure efficiency and profitability.Heres an example: when traders are doing deals they dont have much time on their hands. Their aim is to make money for the bank and they might not have time to check the fruits of their daily trading labor. This is where the Business Control team comes in. Theyre able to calculate, analyze, and report profits and losses. They then pass this information back to the traders and to senior management. The aim is for figures to be tallied with what the traders think they made that day.

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Risk Control This function is responsible for measuring, managing and reporting on risk across the banking group. In partnership with areas such as Legal and Risk Management, Finance analyzes potential business and financial risks associated with certain products and trades, while ensuring all related data are accurate. Valuation With so many products and services being offered by an investment bank, its important that prices for those products and services are set accurately and competitively. Industry standards and complex mathematics are usually used to do this. However continual assessment is vital. Also many new and complex products are created before there are industry standards to base them on.

LEGAL AND COMPLIANCE

There are many ways in which a transaction, trade, or agreement between a bank and one of its clients can fall foul of the law or financial regulations. The small print governing the finance industry is necessarily complex. It needs to account for extremely large and intricate financial agreements between big businesses across a wide range of countries, industries and markets. The many laws and regulations that govern banking differ from country to country. The work that banks undertake is often complex, involving regulations set down by multiple governments and agencies. The rules are not just complicated, but are also constantly changing. Its vital that banks monitor their own activities, stay on top of changes in regulations, and avoid any infringements of the law. So for all these reasons the collective area known as Legal and Compliance is very important to the successful running, and to the reputation, of the bank. Legal and Compliance, as two separate entities, are concerned with many of the same areas, so in lots of banks the two departments are conjoined. The distinction between the two can be viewed as follows: Legal: advises on all legal issues within the bank gets involved in client complaints and in extreme cases handles lawsuits plays a role in contract negotiations assists with investigations made into the banks activities produces legal documents advises and educates employees in legal matters. Compliance: liaises with regulators to stay on top of any regulatory changes ensures local regulations are being adhered to develops strategies and processes in light of any changes in the law assists with training employees on regulatory issues
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 monitors for any questionable trading. In summary, Legal deals more directly with the letter of the law and is predominantly made up of qualified lawyers. Compliance is more specifically focused on the operational elements of the banks business particularly ensuring the bank complies with regulations, and that it conducts business ethically. Roles Within Legal and Compliance Legal and Compliance have an involvement in most parts of a banks business. This means that each of Legal and Compliance is split into specialisms and for the most part experts will sit within that specialist area, not within one big team. For example, someone from Compliance who specializes in Corporate Finance will sit with the Corporate Finance team. Legal In Legal, given the complex nature of the regulations that govern banks you can specialize in anything from derivatives to Asset Management. For obvious reasons a Legal team in an investment bank will be looking for recruits who have a background in law. Almost all of the people working in Legal will be qualified lawyers. Compliance Compliance is also a growth industry and the breadth and scope of opportunities is wide. As well as Compliance specialists sitting amongst various other areas in the bank you might also come across the following sub-teams: Trading compliance These people are involved directly with the trading floor, ensuring that local regulations are being observed. Roles may be specialized towards particular products, e.g. equities or derivatives. Control room This is an internal role ensuring that the companys own traders are complying with regulations. Monitoring and surveillance This team has a remit to observe specific trading practices that might point towards fraudulent activity. Anti-money laundering This is a specific role for a specific type of illegal activity. Teams are assigned to uncover any activities that involve questionable transactions. Regulatory risk Changes in laws and regulations can have a big impact on a banks business perhaps making a trade less financially attractive or increasing operating costs. Regulatory risk specialists analyze how large that impact will be and set in place processes to counter them.

TRANSACTION BANKING
Every day billions of transactions are made around the world. A transaction is the process of money transferring from one place to another. With transactions being such a critical part of any business, its no surprise that Transaction Banking is an incredibly important area for banks to be involved in.
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Transaction Banking isnt just about moving cash; its about the security requirements that come with it. Its about the assurance that the processes are as streamlined as possible. And because these processes can be complex, yet so fundamental to the successful running of a company, banks have large teams of people dedicated to helping clients with their transactions. Areas in Transaction Banking The two key roles in Transaction Banking are product managers and sales people. The product managers have the more operational role - coordinating the back-end processes of the transaction. The sales team, meanwhile, are client-facing, out trying to win new business for the bank. But its not as simple as having one group of experts covering all types of transactions. There are many different specialist areas. Here, we explain the main ones. Cash Management Every corporation needs to manage its cash in an efficient and effective manner. This involves optimizing the way it makes internal and external payments, and making the best use of internal liquidity (cash owned by the company) to reduce the need for external loans. The larger the company and the more countries it operates in, the more challenging this is. There are tax, regulatory, and security issues to consider, amongst many others. Cash Management, therefore, is a broad term that covers the services offered by a bank to help its clients take payments for goods or services, and to process receipts. It also includes assisting them to keep track of their cash flow, and helping them collect money from customers. Cash Management specialists find themselves immersed in their clients daily business and often IT infrastructure. This requires a high level of trust between the two parties to make the relationship work. Trade Finance Trade Finance is Transaction Banking for companies involved in international trading. International trade is highly complex and involves a range of risks. Trade Finance is about helping clients manage those risks and resolving any other issues associated with their international transactions. Its vital that the resulting transaction is completed to the highest level of satisfaction for both the seller and the buyer. Almost all international companies have the potential for Trade Finance requirements, especially those in the consumer, technology, media, industrial and natural resources sectors. Complications can arise when either side of a transaction (the origin and the destination) is subject to a different set of regulations and laws. A Trade Finance specialist must understand how to deal with all eventualities. Consideration must be given to insurance, to determine which party is responsible if something goes wrong. A letter of credit will be supplied in many instances this acts as proof that the buyer has enough resources to complete the transaction. Associated with Trade Finance is Financial Supply Chain Management. This involves ensuring measures are in place to improve the financial efficiency of the supply chain, so that both suppliers and buyers can enjoy better working capital, greater transparency, and a strengthened trading relationship.

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Securities Services As the name suggests, this is servicing, or managing, a clients securities (usually defined as noncash assets such as bonds and shares). Its a complex area with many functions. A key one is safeguarding a clients securities. This is where the phrase custodian bank comes in in other words the bank takes custody of the securities. Securities Services also includes:
arranging settlements (or clearing) of sales and purchases collecting income (for example interest payments on bonds) helping to finance activities relating to the securities monitoring and reporting all activities relating to the securities.

Securities Services is a vital part of Transaction Banking. Closely tied to Asset Management it differs due to the role it plays as a custodian to the securities, as well as its transactional nature for example, the clearing of payments and collection of funds. Asset Management is more to do with the generation of securities products. Capital Markets Capital Markets are markets in which financial securities are traded, generally on a long-term basis. Clearly any business or government that is engaged in trading in securities will be looking for a good rate of return on their investments, along with low exposure to risk. In Capital Market Sales, a specialist team within Transaction Banking, a bank offers products and services to deliver precisely those things. But on top of offering products for managing their transactions on the capital markets, a bank can also provide a comprehensive service to set up and maintain professional risk management for their clients. The types of product a bank can offer include management solutions for:
Foreign exchange Comprising foreign exchange investments, currency hedging and spot transactions (immediate transfer). Interest-rates Including different types of interest rate hedging; such as caps and floors, forwards and swaps. An interest rate cap is a type of derivative in which the buyer receives a payment at the end of an agreed period in which the interest rate goes higher than the strike price. For example, the agreement might be to receive a payment every time the London Interbank Offered Rate goes above 2.5%. An interest rate floor is the same thing, but payment is received if the interest rate goes below an agreed strike price. Commodities For hedging and optimizing commodity prices. For example, a futures contract for oil: buying immediately at an agreed price for the transaction to take place at an agreed later date. Commodity management solutions can also include commodity-linked bonds (a bond in which the payment to the investor is linked to the price of a commodity). Investments These include money market products (short-term, fixed income investments), securities and derivatives for hedging and optimizing investments. The bigger the bank, the better its resources and the more complete its Capital Market product package.

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SALES AND TRADING

Buy, buy, sell, sell. Ask someone in the street what investment banking is and theyll probably talk to you about trading. Its a myth of course that banking is only about trading but its fair to say that it is one of the most important and well-known parts of the business. So what do they do? Well in simple terms traders buy and sell products. These might be: financial products such as shares in companies foreign exchange commodities such as gold, beef, oil or natural gas. The price of all of these things fluctuates according to whats happening in the market - both in terms of the individual product and the wider economy. If you see gas or petrol prices go up in your local service station, its probably because something has happened somewhere in the world that has pushed up the price of oil. This can be due to the simple laws of supply and demand if more people want something, or it becomes more difficult to get hold of, the price increases. Trading is vital to the world economy. If every person, company or even country, in the world had to be completely self-sufficient then the economy would be brought to its knees. The trading floor has changed dramatically in recent years. Phones, and now computers, have replaced many of the famous open outcry trading floors. Now traders often sit in front of four or five computer screens watching market developments. The more screens they have, the more important they think they are! Even so, the pace of life remains infamous. Those who work on the trading floor need that legendary stamina to think and act as quickly as they can throughout the day. Roles in Sales and Trading Theres a variety of different roles that make up the Sales and Trading team, each vital to the process in its own right. Sales The salespeople are generally known as brokers or dealers. A big part of their job is contacting existing or potential clients to try to sell them financial products. Their key challenge is to build their book of client transactions. Theyll work the phones for the whole time the markets are open, and often for a few hours either side. Who are they talking to? Well clients could be a whole range of different people: institutional investors pension fund managers hedge funds (visit Learn the jargon for the definition) even high net worth individuals (people with their own personal fortune). So the main aim of the salesperson is to generate and take orders from clients for whatever they want to trade in, and then pass those orders over to the traders to execute the trades. They will also
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work with traders and the research team to devise trading strategies and raise capital for the bank by placing newly issued bonds and shares with investors. Trading These are the people who actually do the buying and selling on the financial markets. They access the markets through an array of computer monitors each showing movements of stocks, bonds, commodities and various other financial products. Theyll also have up-to-the minute news and research streamed live to them, so that at any moment they can press a button to buy or sell the product theyre tracking. Buy low and sell high, and theyre onto a winner. Buy high and sell low oh dear. Traders use many different strategies to make their trades. Here are some of the basics: short term gain using expert market knowledge to beat the market long term gain buying and holding onto investments to achieve a return over a given period risk management strategy dealing in particular investment types to offset a predicted risk and balance their portfolio Research The research role varies according to each bank. Researchers will often sit and work directly with sales, presenting their take on how different markets will perform. Typically this covers analysis of a specific company or sectors financial performance. At a more advanced level, they will also be involved in creating and pricing new financial products for the sales team to sell to clients. Structuring In many banks this is a fairly recent addition to the Sales and Trading division, but one you may find has a large intake of graduates. Structurers work with the sales team to understand the needs of clients whose requirements are either very specific or highly complex. They then structure deals so they are tailored perfectly to client requirements, sometimes creating new financial products in the process. Structured products can include a whole variety of different securities including stocks, bonds, commodities, and derivatives all neatly packaged up for the client. So that was a brief lowdown on the roles. We should now turn our attention to some of the key areas that the teams are selling, trading in, and researching.
Equity Investors buy and sell equity (or shares) in a company based on which direction they think the share price is going to move. Research plays a vital part in this area. It will analyze a companys past results and forecast future performance, along with looking at industry trends and how they may impact upon a company's finances. Any information that could affect the future financial performance of a company could prompt a wave of swift buying and selling activity. Debt Banks buy and sell debt primarily in the form of bonds. Bonds are issued by governments and companies who use the issuing of debt to raise finance for their institutions. These are normally for a fixed term of, for example, 5 or 10 years. For this reason bonds are considered a more slow-paced investment than equities. Investors receive regular interest payments until the bond matures and the debt is repaid.

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Money markets Money market desks lend and borrow large amounts for short periods perhaps from a day to around three months. Foreign exchange The trading of foreign exchange (also known as forex or FX), is very important to many multi-national companies. A typical example would be that a client wants to buy currency at a guaranteed price, in say six months from now. Why? Because they need to pay a supplier based in the country of that currency and dont want the risk of fluctuations in the daily foreign exchange market. Clients might use this process to offset risk. Banks also trade in FX because they take commission on each transaction. Derivatives Derivatives are financial products whose value is based on the expected future price of an underlying asset (typically equity, debt or a currency). For example, you want to buy shares in a company, and current market trends suggest that the share price will rise in six months. The solution could be to buy a noobligation option to buy the shares in six months, but at the current price (plus a small premium). If they dont rise, you simply sell the option, not the shares. Other common types of derivatives include futures and swaps.

ASSET MANAGEMENT
Asset Management is, in simple terms, all about managing other peoples money and making more money while doing it. Broadly, there are two categories of client: institutions (large corporate clients) and retail (private investors). Money is invested on behalf of these various clients into investment products (or asset classes). These include: Stocks also known as equities, a stock is typically a share of ownership of a company Bonds these are basically loan agreements: a company or government issues bonds and receives money in return, while the bondholder receives a fixed amount of interest on the money they have lent Foreign exchange Property i.e. real estate. So from stocks to real estate, one of the key things the Asset Management division needs to do is use a combination of investment experience, theory, technology and market analysis to identify the best investments for its clients portfolios. Then they need to grow the value of the initial investment on behalf of their clients, but keeping in line with the clients needs. The more successful they are at this, the higher the commission they make for themselves and the bank. Sub-Areas of Asset Management In general, Asset Management is broken down into a number of key sub-sections according to investor and investment types:
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Institutional investors This area specializes in providing investment advice and products to pension funds, insurance companies, charities and corporations. It often involves making long-term investments of their assets. Retail investors This refers to an individual as opposed to an institutional investor. However, asset managers dont usually deal with individuals directly. In most instances the client relationship will be held either by another part of the bank, such as the Wealth Management division, or by an independent financial advisor. In these cases, the retail part of Asset Management develops investment products tailored to retail needs which are then marketed through these channels. Alternative funds This is where asset managers offer investment into things like hedge funds and real estate. Real estate comprises commercial or industrial property. Hedge funds meanwhile are usually used by wealthy individuals and institutions, looking to generate returns even when markets are volatile or performing poorly. Alternative funds also include funds relating to fixed-income and equity. The functions of Asset Management The functions generally fall into two parts: investments and sales. Investments Also known as Investment Management, this is the doing bit of Asset Management the investing of clients funds. There are various roles within Investments, including research analysts, portfolio managers and traders. Research analysts Research analysts identify companies and industry sectors and make recommendations on how best to invest. They tend to be experts on a specific market, for example telecoms or automotive. Research analysts need to be able to take complex information and distil it down so its comprehensive, clear and easy to understand. The information they provide then goes to the portfolio manager (see below) or directly to the client if the client chooses to make their own investment decisions. Portfolio managers Using information gathered by the researchers, portfolio managers make the decisions about where to invest their clients money. They work to clients pre-determined criteria. This might include the percentage of money the client wants to invest in certain types of asset, and the level of risk they are willing to take. As with research analysts, portfolio managers tend to specialize in specific types of investment and market, such as bonds or futures. They need to be constantly up to date on world events and how these could impact the products and markets they work with and the portfolios they manage. The ultimate decision on where to invest rests with them. As a portfolio manager, your success is measured against an industry benchmark, the better your funds do, the more confidence clients will have in you, the more they will invest and the more successful you are.

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Traders Working on behalf of portfolio managers, traders must make sure that all trades are made/executed at the best possible price, under the best conditions and performed quickly via the best network of brokers. Traders work under a lot of pressure. Unexpected moves in a market (for example as a result of political circumstances or if a big company goes bust) can have a massive impact. In these instances portfolio managers will want to trade quickly to either minimize the negative impact, or maximize the potential, of their clients portfolio. Its imperative that a trader keeps a cool head in these situations. Sales and distribution This function is responsible for positioning and selling the investment services offered by the bank. It also manages client relationships. The 'clients' in this case are the distribution channels that sell the bank's services on its behalf they could be retail banks, independent financial advisors, institutional investors and professional wealth managers. In sales, you need to understand the clients needs and sell them the right products and services to meet those needs. Salespeople need to feed back to the product managers to ensure that the products developed are in line with client needs. So who are the product managers? Well, these are the people who devise the new investment products and services. They use their network, working closely with investment management, watching competitors and gaining a deep understanding of the market to identify where opportunities lie. In sales and product management, the key to success is in really knowing the market, creating products, positioning them within the market, and winning over investors. Product managers are a key link between the asset managers, clients and legal divisions. Competition is high, workload hectic, and commitment is key.

WEALTH MANAGEMENT
Wealth comes in lots of forms; it isnt simply a matter of having huge sums of cash in your bank account. People who have a lot of money often have complex financial arrangements in which their assets are widely spread and diverse in nature (assets is the term used for anything owned by an individual or business which has monetary value). Making those assets work most efficiently and productively takes an in-depth knowledge of both financial markets and the latest investment opportunities. This is where the Wealth Management division comes in. It does exactly what it says Wealth Management is about managing peoples wealth. The people in question are usually defined as high net worth individuals. HNWs are generally defined as people who own financial assets over $1 million.What types of clients are there? Well, they could be anyone or rather anyone who has enough money to warrant employing a wealth manager: successful business owners, entrepreneurs, people who are rich through inheritance, perhaps even celebrities.
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Given the often complex nature of a HNW individuals assets, it is no good for a wealth manager just to advise on what to do with one lump of cash. Wealth managers provide comprehensive financial support for their clients. The advice they offer will be wide-ranging and varied. It can cover taxes and asset protection, investments to property advice. Of course they cant be experts in everything - in many cases theyll act as a front for other departments in the bank, depending on the complexities of the services required. The things they do will often touch on many aspects of their clients lives from business to family. Nurturing the relationship they have with their client is vital to retaining and growing their business. Wealth Management services are offered on a discretionary or non-discretionary basis: Discretionary Clients who opt for discretionary support effectively hand over their finances to the bank to manage. Based on pre-determined criteria, the bank will make investment decisions (perhaps through its Asset Management division) on behalf of the client and assumes responsibility for protecting and growing their wealth. Non-discretionary Non-discretionary means that, although the client receives advice from the bank, ultimate decision-making still lies with the client. Roles Within Wealth Management in banking Banks differ in how theyre structured but Wealth Management can be split into these three broad areas. Relationship managers
This is an exceptionally important role. Relationship managers are the main point of client contact. Theyre sometimes called client executives. It can also be a very complex role. The relationship manager needs a grounding in many areas:

the services and products his or her bank offers an in-depth knowledge of the clients own finances a full understanding of financial markets or other external factors that can affect either of the above.

Lets think about what type of advice will be offered; only then can we understand why its so important that the relationship managers rapport with the client is so strong and their knowledge-base so wide. Things like: the management of the client's assets such as stocks, bonds and real estate establishing trust funds and drawing up wills charitable donations even the purchase of expensive goods such as art works and antiques. In order to advise them on their finances, the relationship managers will have to understand various aspects of their clients personal life. They will therefore often find themselves networking with the clients families and friends. Thats not all the job entails of course, but it can be an exciting and rewarding aspect.

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Product specialists
These are the people who develop the investment products and/or uncover the investment opportunities. There are many specialisms so here are just a few examples: real estate financial instruments such as stocks, bonds, derivatives, equities and foreign exchange alternative investments such as hedge funds art and antiques. To find out more about the type of investments and assets the investment manager and product specialists might get involved in, take look at our section on Asset Management. Product specialists will often liaise directly with colleagues in Sales and Trading to ensure top market expertise is passed down to clients. They will also often be client facing, offering support to the relationship managers. They need to be good communicators, interacting with different levels. Simplifying complex financial ideas is a start. But they may also get involved in sales and business development themselves. Its a varied and exciting role.

Investment managers
The role of the investment manager is to directly manage the clients assets. They will typically oversee a large number of client portfolios, which normally include a complex combination of investments. So the responsibility of making the clients money make more money ultimately lies with the investment manager.

TREASURY
Treasury plays a pivotal role in the running of a bank: it looks after the money. Its responsible for the banks capital, liquidity and balance sheet.A key responsibility for Treasury is making sure there is enough cash in the bank, that there is capital available when needed, and that funds can be raised as and when necessary. Treasury is usually a small division in terms of headcount, but it serves a vital function in the smooth running of any large scale bank. Roles Within Treasury Treasury has the following broad responsibilities: Liquidity Liquidity refers to the ease of converting assets into cash without incurring financial loss. Liquidity risk can be a major concern to banks, when for example a security or asset cannot be traded, perhaps because no one on the market wants to buy or sell it. So in Treasury, this role involves carrying out stress tests to determine whether the bank has sufficient liquidity, or to assess the pricing of assets and liabilities for liquidity management and funding purposes. They also monitor the concentration risk of the banks accounts - in other words ensuring that funding is diversified across a wide variety of sources. Capital This area of Treasury involves capital management of the bank; for example, injecting capital where and when it is required, perhaps when businesses are expanding or an entity requires it to cover losses or because of a change in regulations. Other capital management tools involve FX hedging of capital, and securitizations.
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Funding Treasury will take responsibility for issuing bonds (loan agreements) when extra funding is required. For example it might do this by hosting roadshows for investors. Other sources of funding include wholesale funding and retail deposits among others. The number and variation of roles in Treasury will depend largely on the scale of the company. Clearly the work is numbers-based however the structure will vary across institutions. Whatever the case, there is a great deal of work with numbers analyzing data and running complex computations. But the work also involves a lot of communication with other departments and companies.

TECHNOLOGY
Banks are highly specialized environments. They rely heavily on top-end technology as the essential tool in their complex and fast-paced activities. Staying ahead of the game is vital to the success and growth of the business. Technology is essential to even the most basic execution and processing of trades which are core to the daily functioning of the bank. And only the most innovative Technology division will help to keep the bank ahead of the competition. Real technological innovation can be worth billions. For example, with margins (the money made on a trade) being squeezed and squeezed, a competitive edge is gained through being able to manage that trade in the most efficient way possible. The fewer people that have to be involved in the process of making a trade, the quicker it flows through the system and the more money the bank can make. And its advances in technology that make all this happen quicker, more efficiently, and without error. After all, a millisecond can make a lot of difference to the price at which you trade. Of course, its not all about trading. Technology is integral to all parts of the bank. Working in Technology generally involves the following functions: analyzing current systems and developing proposals for new requirements designing and managing project plans for new technologies enhancing and streamlining established systems and processes creating prototypes of new products for testing troubleshooting problems identified in testing liaising between the business and its service providers to arrive at the best solutions

This is not your average IT environment. Most big banks outsource their day-to-day IT support so you wont be asking people to reboot their computers! The demands made upon the Technology team are unique to the business and require a great deal of flexibility and creative thinking. The level and complexity of the technologies involved is as advanced and cutting edge as any industry out there. Roles Within Technology in banking
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Depending on the bank, the technology department may organize itself around the departments it provides services for. Or it may develop its own internal structure. A smaller company might arrange a team on a project-by-project basis. In this case, the requirement is that the Technology analyst will need to be highly flexible and have good knowledge of the companys broader activities.
Likely roles include the following: Business analyst - examines the requirements for the development of future systems Application developer - designs new applications and programming code Production manager - manages system stability and deploys new applications Service manager / vendor manager - manages the relationship between the business and service providers Functional analyst - identifies and addresses obstacles in advance Technical specialist - develops technical specifications to address business requirements. Project manager - oversees projects in all levels of the business, consulting and monitoring the running of existing systems (normally supported by project coordinators)

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