Ali Ahmed

6th pd Click

Burger, Katherine. "Community bank thinks big: under VP/COO Leif

Christianson's leadership, Peoples State Bank has outsourced its core
banking systems--and boosted revenues and growth as a result." Bank
Systems + Technology Dec. 2014: 11. Academic OneFile. Web. 11 Mar.
2015.
<http://go.galegroup.com/ps/i.do?id=GALE
%7CA397136069&v=2.1&u=j084910009&it=r&p=AONE&sw=w&asid=
8dc045b9794cc9ba556c47fe0acca454>

Community banks often have a greater need to place more focus on

improving day-to-day operations, customer service, and revenue
generation.
Often community banks can increase competitiveness and quality of
service delivered by updating aging or incompatible technology.
When it comes to technology there are multiple different approaches
that allow for the optimization of banking systems.
The capital expenditure model (capex) calls for a large upfront capital
investment in upgrading banking systems.
Capex has the disadvantages of requiring a large upfront cost and
placing large faith in future growth for a return on investment.
The operating expense model (opex) presents the advantage of
allowing banks to pay as they go for the amount they use when
outsourcing to larger vendors.
The conversion of systems in a bank creates a greater need to
communicate effectively with all those who are to be affected by the
change.
Among those that require communication are the banks employees,
customers, and shareholders.
The large conversion of banking systems presented great opportunities
for employees to be crosstrained.
The additional training provided allowed for the elimination of gaps in
service and ensured an even distribution of work knowledge among
employees.

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Outsourcing of technical systems allows for a smaller bank to assume

the capacity of larger banks ability to scale resources to meet market
demand.
The outsourcing of technology removes the pressures and penalties of
overbuying technology and needing to grow into it.
Community banks can greatly increase competitiveness and quality of
service through improving technological infrastructure to suit their
needs.

Ryan, Vincent. "Reining in buyout loans: federal regulators aim for more
stress-testing of loan portfolios and better-defined standards on a
borrower's ability to repay." CFO, The Magazine for Senior Financial
Executives May 2012: 19+.Academic OneFile. Web. 23 Mar. 2015.
<http://go.galegroup.com/ps/i.do?id=GALE
%7CA291616682&v=2.1&u=j084910009&it=r&p=AONE&sw=w&asid=
b27d5454c6505b61964dfd61c6fcce32>

Federal banking regulators are placing greater pressures on banks to

tighten up on the underwriting of leveraged loans.
Leveraged loans are often used by private equity companies to
conduct buyout transactions.
Federal regulators recommend more rigorous stress testing of such
loans.
They also recommend that banks explore the likelihood of financial
sponsors of leveraged loans injecting capital into the loan if it is
underperforming.
To ensure that banks follow through with the recommendations, federal
regulators will most likely begin requesting information relating to said
countermeasures.
The greater pressure likely comes as a result of the financial crisis in
2006 and 2007, which was a result of aggressive underwriting
practices.
These aggressive practices led to a large number of covenant-lite loans
that had no recourse if they failed.

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Banks as a result have begun to develop monitoring and exit plans for
these types of loans.
The tighter restrictions may limit companies and private-equity firms
from receiving funding from banks.
Banks are expected to find borrowers with capacity to pay back highly
leveraged loans in 5 to 7 years.
Another issue that may arise as a result of greater monitoring
manifests itself in banks IT infrastructure.
There is doubt whether existing IT infrastructure can handle additional
monitoring.
With increasing pressure from federal regulators, banks have to adapt
previously acceptable practices to meet new standards.

Pollack, Scott. "What, Exactly, Is Business Development?"Forbes. Forbes

Magazine, 21 Mar. 2012. Web. March|2015.
<http://www.forbes.com/sites/scottpollack/2012/03/21/what-exactly-isbusiness-development/>.

Biz dev is colloquially a short term way of saying business

development.
What the definition of business development truly is, is a point of great
contention in the business world.
Some say Business development is sales.
Others, Business development is partnerships.
And still some say Business development is hustling.
Business development however can be concisely described as
the creation of long-term value for an organization from customers,
markets, and relationships.
Business development examines how the aforementioned elements
interact to create opportunities for growth.
The key to fully understanding the definition of business development
is to be able to understand what long-term value means.

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6th pd Click

The simplest way to describe value is cash, but it also can represent
anything that allows a business to grow.
Although there are plenty of ways to quickly raise cash for a company
that does not necessarily mean that long term value is created.
Business development is about creating opportunities for value to
travel through floodgates for a long period of time.
Another very important component of business development to
understand is customers.
Customers are essentially the ones who foot the bill for business
development and growth by paying for products and services provided.
A good tactic for reaching consumers is attaining a better
understanding of the market in which they reside.
Business development also places great focus on building, managing,
and leveraging relationships.
These relationships are built on mutual trust, respect, and
understanding that each person plays a fundamental role in creating
long-term value.
Business development is a discipline that requires mastery in order to
better grow ones business.

Daub, Matthias, and Anna Wiesinger|. "Acquiring the Capabilities You Need to
Go Digital." Acquiring the Capabilities You Need to Go Digital. McKinsey
& Company, Mar. 2015. Web. 25 Mar. 2015.
<http://www.mckinsey.com/insights/business_technology/acquiring_the
_capabilities_you_need_to_go_digital>

Digital capabilities are a must have in order for companies to be able

to compete in the long term.
Despite this, many companies still have difficulty in obtaining the
conceptual clarity that would allow them to go digital.
Going digital includes but is not limited to: setting up IT
organizations, acquiring and developing the tools and talent needed to
manage digital information, and establishing and maintaining online
services and automated processes.
Some companies also need to recognize that many of these tools and
resource are not necessarily (most of the time) available in house.

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For example, a lot of the talent required to make the transition is

available in short supply.
The talent required comes in the shape of product managers familiar
with cutting-edge technology, wizened business and data analysts who
can extract useful information form customer data, design-oriented
content managers who can measure the appeal of a product, and
many others that bring much needed expertise in the transition to
digital services.
The prospect of developing such digital expertise in house is a process
that could take many years.
To be able to better compete companies need to able to adopt a more
dynamic approach when examining digital capabilities.
Things to keep in mind when assessing digital capabilities include but
are not limited to: digitization targets, operating models, and
capability-building practices.
Digital sourcing has shifted focus from traditional sourcing in many
areas.
Traditional sourcing placed greater concern on cost whereas digital
sourcing cared more about talent.
Traditional sourcing believes that project scope and development are
fixed while in digital sourcing believes that they are ever-changing
The growing need for digitization in the business environment is a
compelling reason for a complete overhaul in existing digital systems.
Diamond, Douglas W., and Raghuram G. Rajan. "Liquidity Shortages
and Banking Crises." THE JOURNAL OF FINANCE LX.2 (2005): 133. Chicagobooth.edu. |. Web.25 Mar. 2015.
<http://faculty.chicagobooth.edu/douglas.diamond/research/pape
rs/liquidshor.pdf>.

This source aims to demonstrate that bank failures can be

considered contagious.
This labeling comes as a result of an observation that recognizes
the fact that when banks fail overall liquidity is put at risk.
This relationship between liquidity makes it difficult to assess the
true cause of a crisis.
Typically banks are found at the center of most financial crises.
Often the causes are ambiguous and hard to pinpoint, making
them a highly controversial and debated.

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The source attempts to examine whether bank failures can

trigger systemic crises even if depositors do not panic.
The issue of crises may stem from a general equilibrium problem
independent from any depositor actions.
When examining a model displaying a bank with illiquid assets, it
appears that there are many underlying issues.
These illiquid assets cannot be borrowed against or be sold for
the value of the resources they could generate when best used.
Typically they cannot be sold for full value due to a lack of human
capital that can be committed to the asset.
A solution to the problem may have a banker employ their
collection skills to generate appropriate capital for investors.
The banker can accomplish such by issuing demand deposits, but
most depositors will not accept a lower amount than promised.
Deposits in most cases typically have a first come first serve
approach to them.
This dynamic makes it more favorable for the depositor to
demand immediate payment if there are others willing to accept.
Any attempt by the banker to negotiate down the payment to the
depositor will create a bank run, something that should be
avoided like the plague.

Financial crises can stem from large scale bank illiquidity, which has
usually been attributed to deposit runs.