Banks have a similar range of medium- and long-term financing options as industrial and ser vice companies. These include equity raised through private placements or rights issues, straight bonds, conver tible bonds, preference shares and subordinated debt. These usually comprise only a relatively low propor tion of a bank’s funding and capital management factors are usually the main consideration in raising medium- to long-term finance.
Archive for the ‘finance’ Category
Medium- and Long-term Finance
Sunday, October 4th, 2009Short-term Finance
Monday, September 28th, 2009From a bank’s perspective there is little difference between a negotiable certificate of deposit (NCD) and a time deposit. The big difference to the holder of NCDs is that they can be traded in a secondar y market. NCDs are also generally relatively longer term than time deposits but shorter term than bonds. They may be issued in the local currency or a foreign currency, usually the US$. In the latter case proceeds may be used to finance foreign currency assets or swapped back into the local currency.