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The term credit management may be broadly distinguished into two
idea or concepts. The first one mainly means the business owners
implementing credit management policies to receive the financial
obligations on time and avoiding bad debts. The second one mainly
means that if you are an American who is concerned about paying his
obligations on timely basis and thus meanings definitely deal with debt
management solutions the parties either being the creditors
themselves or debtors.

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Credit score plays a very important role is anyone͛s life as a good credit
score opens great financial avenues for your future. With a good credit
rating you may be extended help for loans and credits. And thinking of
the poor side with a poor credit rating you will always face a problem
availing a loan. Thus you must pay your bills on time. You must pay off
your creditors before the due date. Pay off your credit card obligations.
All these things will help out to save your interest and late fees, which is
very high. You can save a lot of you money. You should not be running
away from your creditors. You will have to coordinate with them and
see how cooperatively they are. They all have specific debt
management plans that can benefit you. Don͛t run away from them or
else you will be landed up in a bigger trouble.
cc



 

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You are a company or run a business. You can avail benefit of these
services to get your payments on timely basis. It will generate a cash
flow on the regular basis by efficient management and collection of
current and overdue credits extended. It maintains good client-business
relationship. Of course for these services credit management
companies charge come fees. But it is truly worth it. It also helps to
verify the client͛s good will and credit standing before giving any credit
to them. By abiding by credit management policies specifically designed
for the company these companies check the credit worthiness of your
prospective client and saving a lot of your time and energy.

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#
  #

These services are extended to the individuals who find it difficult to

pay off their debts on time. For these people they design special credit
management strategies. These companies negotiate with your creditors
and come up with ways that can be feasible to save on your credit score
and also bring you back on the financial track. It can apply to consumer
loans, credit cards, personal loans, outstanding medical bills, auto loans
etc. in all these cases, the company negotiates with the creditor on
behalf of the borrower who is in financial trouble. By doing so it enables
the creditors to accept the fraction of the obligation amount and thus
save money for the borrower and thus making him capable to stand up
efficiently again. A positive relationship exists between risk and profits.
So both risk and profit objectives should be balanced. Profit
maximization does not take into account the social considerations.
The objective of financial management is the same as the objective of a
company which is to earn profit. But profit maximization alone cannot
be the sole objective of a company. It is a limited objective. It profits
are given undue importance then problems may arise as discussed
below. The profit is vague and it involves much more contradictions.
Profit maximization must be attempted with a realization of risks
involved.

_  


 
$ %
&'

The term credit management may be broadly distinguished into two

ideas or concepts. The first one mainly means the business owners
implementing credit management policies to receive the financial
obligations on time and avoiding bad debts. The second one mainly
means that if you are an American who is concerned about paying his
obligations on timely basis and thus being on the financial track
avoiding low credit ratings. However these two meanings definitely
deal with debt management solutions the parties either being the
creditors themselves or debtors.

2)  


 
(
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&'

The capitalization rate reflects the liking of the investors for the
company. Methods of financial management: in the field of financial
there are multiple methods to procure funds. Funds may be obtained
from long term sources as well as from short term sources. Long term
funds may be procured by owners that are shareholders, lenders by
issuing debentures, from financial institutions, banks and the general
public at large. Short term funds may be availed from commercial
banks, public deposits, etc.
Financial leverage or trading on equity is an important method by
which a financial manager may increase the return to common
shareholders.

It is commonly understood that the objectives of a firm is to maximize

value and wealth. The value of a firm is represented by the market
price of the company͛s stock. The market price of a firm͛s stock
represents the assessment of al market price of all market participants
as to what the value of the particular firm is. It takes in to account
present and prospective future earnings per share, the timing and risk
of these earning, the divided policy of the firm and many other factors
that bear upon the market price of the stock. Market price acts as the
performance index or report card of the firm͛s progress and potential.

Prices in the share markets are affected by many factors like general
economic outlook. Outlook of the particular company, technical factors
and even mass psychology. Normally this value is a function of two
factors: the anticipated rate of earnings per share of the company the
capitalization rate. Similarly, for the evaluation of a firm͛s performance
there are different methods. Ratio analysis is a common technique to
evaluate different aspects of a firm. An investor takes in to account
various ratios to know whether investment in a particular company will
be profitable or not. These ratios enable him to judge the profitability,
solvency, liquidity and growth aspect of the firm.

The likely rate of earnings per share depends upon the assessment of
how profitable a company may be in the future. At the time of
evaluating capital expenditure projects methods like average rate of
return, pay back, internal rate of returns, net present value and
profitability index are used.
A firm can increase its profitability without adversely affecting its
liquidity by an efficient utilization of the current resources at the
disposal of the firm. A firm can increase its profitability without
negatively affecting its liquidity by efficient management of working
capital.1. while financial institutions have faced difficulties over the
years for a multitude of reasons, the major cause of serious banking
problems continues to be directly related to lax credit standards for
borrowers and counterparties, poor portfolio risk management, or a
lack of attention to changes in economic or other circumstances that
can lead to a deterioration in the credit standing of a bank͛s
counterparties. This experience is common in both G-10 and non G-10
countries.

ã. Credit risk is most simply defined as the potential that a bank

borrower or counterparty will fail to meet its obligations n accordance
with agreed terms. The goal of credit risk management is to maximize a
bank͛s risk-adjusted rate of return by maintaining credit risk exposure
within acceptable parameters. Banks need to manage the credit risk
inherent in the entire portfolio as well as the risk in individual credits or
transactions. Banks should also consider the relationships between
credit risk and other risks. The effective management of credit risk is a
critical component of a comprehensive approach to risk management
and essential to the long-term success of any banking organization.

. For most banks, loans are the largest and most obvious source of
credit risk;

However, other sources of credit risk exist throughout the activities of a

bank, including in the banking book and in the trading book, and both
on and off the balance sheet.
Banks are increasingly facing credit risk (or counterparty risk) in various
financial instruments other than loans, including acceptances,
interbank transactions, trade financing, foreign exchange transactions,
financial futures, swaps, bonds, equities, options, and in the extensions
of commitments and guarantees and the settlement of transactions.

s. Since exposure to credit risk countries to be the leading source of

problems in banks world-wide, banks and their supervisors should be
able to draw useful lessons from past experiences, banks should now
have a keen awareness of the need to identify, measure, monitor and
control credit risk as well as to determine that they hold adequate
capital against these risks and that they are adequately compensated
for risks incurred. The basel committee is issuing this document in
order to encourage banking supervisors globally to promote sound
practices for managing credit risk. Although the principles contained in
this paper are most clearly applicable to the business of lending, they
should be applied to all activities where credit risk is present.

. The sound practices set out in this document specifically address the
following areas:

i. Establishing an appropriate credit risk environment.

ii. Operating under a sound credit-granting process.

iii. Maintaining an appropriate credit administration, measurement and

monitoring process and

iv. Ensuring adequate controls over credit risk.

Although specific credit risk management practices may differ among

banks depending upon the nature and complexity of their credit
activities, a comprehensive credit risk management program will
address these four areas. These practices should also be applied in
conjunction with sound practices related to the assessment of asset
quality, the adequacy of provisions and reserves and the disclosure of
credit risk, all of which have been addressed in other recent Basel
Committee documents.

:. While the exact approach chosen by individual supervisors will

depend on a host of factors, including their non-site and off-side
supervisory techniques and the degree to which external auditors are
also used in the supervisory function, all members of the Basel
Committee agree that the principles set out in this paper should be
used in evaluating bank͛s credit risk management system. Supervisory
expectations for the credit risk management approach used by
individual bank should be commensurate with the scope and
sophistication of the bank͛s activities. For smaller or less sophisticated
banks, supervisors need to determine that the credit risk management
approach used in sufficient for their activities and that they have
installed sufficient risk-return discipline in their credit risk management
processes.

. The committee stipulates in Sections II through VI of the paper,

principles for banking supervisory authorities to apply in assessing
bank͛s credit risk management systems. In addition, the appendix
provides an overview of credit problems commonly seen by
supervisors.

. A further particular instance of credit risk relates to the process of

settling financial transactions. If one side of a transaction is settled but
the other fails, a loss may be incurred that is equal to the principal
amount of the transaction. Even is one party is simply late in settling,
than the other party may incur a loss relating to missed investment
opportunities. Settlement risk (i.e. the risk that the completion or
settlement of a financial transaction will fail to take place as expected)
thus includes elements of liquidity, market, operational and
reputational risk as well as credit risk. The level of risk is determined by
the particular arrangements for settlement. Factors in such
arrangement that have a bearing on credit risk include: the timing of
the exchange of value; payment/settlement finality and the role of
intermediaries and clearing houses. The active management of credit
risk has risen to the top of the agenda of most financial institutions in
the last couple of years and for good reason. Despite high-profile fears
about the risks of electronic banking, or losses from derivative
positions, inadequate credit risk management is still the biggest source
of serious banking problems according to the Basle Committee ʹ the
international banking supervisory body.

The new capital Accord, likely to be agreed within the next year, will
give larger institutions major incentives to reduce their regulatory
capital and save money by improving their credit management
practices. Meanwhile, greater industry competition, industry
consolidation and new technology are adding to the pressure to
improve credit risk management throughout the financial industry. The
current emphasis on shareholder value and risk-adjusted return on
capital is directing investment towards business lines that manage their
risks more effectively ʹ including all types of credit risk. Traditionally,
credit risk refers to the risk that a borrower of counterparty will fail to
meet its obligations. Lending from credit cards to corporate loans is the
largest and most obvious source of credit risk.
But credit risk in some guise exists throughout bank activities, both on
and off the balance sheet from acceptances, interbank transmissions,
trade financing and derivatives trading to guarantees and settlement.

As you can see by passing your cursor over each point in the circle
below, it͛s not just banks that are subject to credit risk. Fund managers
and investors are directly exposed to credit risk in their fixed-income
investments. Insurance companies are exposed to it through their
credit investment and credit guarantees. Companies are exposed to the
risk that trading partners, distributors or suppliers may default or fail to
live up to critical obligations.
The advances in measuring and managing credit risk mean that a
passive absorption of credit risk by these companies is the way of the
past. Leading institutions now regularly isolate and package portions of
their credit risk by means of new tools credit derivatives and
securitizations and pass it to the financial markets. These transactions,
often hybrids of the ͞first generation͟ credit default or total return
swaps that appeared in the mid-1990s are thawing out the credit risk
that lies frozen in bank portfolios and channeling it to investors as our
first Expert Witness testifies.
The scroll-over Credit Cycle diagram, above, helps make clear how
interlinked all these changes are. An unholy alliance of factors set the
Cycle in motion in the early 1990s: new credit modeling technology,
investor demand, bank marketing, the needs of risk managers and the
power of diversification and attempts to arbitrage regulatory rules on
capital charges.

But the end result is that credit is developing as an asset class for
investors and as a means of diversification for banks and an increasing
range of financial institutions including insurers as our next Expert
Witness explains.

As it matures, the supply side of the credit risk cycle is increasingly

driven by attempts to maximize the risk adjusted rate of return on
credit risk in each institution, while at the same time transferring away
any life-threatening concentrations and correlations of credit risk. Here,
two measures of credit loss expected loss and unexpected loss are the
key to bank͛s attempts to anticipate their future risk exposures.

Expected loss is the average anticipated loss rate on a portfolio in one

year, based on historic loss experience; unexpected loss is the
anticipated variation in that loss rate. By understanding better its
unexpected loss rate at portfolio level in particular, the influence of
correlation on its risk exposures a typical institution might expected to
reduce the economic capital consumed by its credit portfolio by 25-
30%. As the paper below makes clear, banks can achieve these savings
even when using quite simple optimization techniques.

And while banks improve the way they identify, measure, monitor and
control their credit risk, they are also developing techniques and
systems that track the relationship between credit risk and other risks,
such as market risk to enable full enterprise wide risk management.

The first step is to know your credit risks.

The first step in the credit risk management process is for an institution
to identify the risky credit in its portfolio of loans, dealer or
transactions. Banks, for example, achieve this by assigning a credit
score or rating to each individual borrower, so the bank can begin to
understand its credit risks and assess how best to manage them.

Some assets are easier to assign a credit score than others. The most
developed credit scoring techniques are for consumer loans, such as
credit cards and auto loans. As early as the 1980s, credit bureaus
focused on information such as credit delinquency and debt burden to
assess credit quality. A bureau score that captures almost all the
measurable risk inherent in a consumer relationship can be purchased
readily and cheaply from a credit bureau such as Equifax or Experience.
Credit provides also use information supplied in credit applications,
such as income and whether the individual owns or rents his home.
Automated scoring techniques provide a three digit number derived by
computer algorithm from the individual͛s credit report, which is
compared with patterns in thousands of past credit reports.

Bureau scores are also applicable to some small business- possibly

those up to $ 1 million in asset size, as many startup companies are
considered to share the credit characteristics of their founders. But
there are also many proprietary and industry standard approaches to
credit scoring in the small business sector.
Increasingly, consumer and small business credit scores are augmented
by data mining technology that helps institutions analyze the ͞reward͟
part of the risk/reward equation for example; a consumer segment
analysis might rank customers in terms of their propensity to carry a
revolving balance. This is important because a customer͛s profitability is
not only decided by the chance that they will default, but also by the
likelihood that they will take up bank offerings. Marginally ͞risky͟
customers are not always loss makers. One reason for this is the
problem of data. Information exists on hundreds of thousands of bad
credit card debts and millions of goods ones. In contrast studies on
commercial default models rely on relatively tiny numbers of defaulting
companies, partly because the universe of potential defaulters is
smaller, but partly because reliable data is difficult to obtain and filter.

Outside the US, the data problem extends even to the largest
companies. This is partly because public credit ratings have been
applied to major US companies for years ʹ Moody͛s default database
holds information on 1,975 public US and Canadian companies that
have defaulted since 1980. By comparison, only 14 holders of long term
local currency rating have defaulted in Europe since standard & Poor͛s
began rating corporations there in 1975. All but two of these defaulted
in the last two years.

Because of a serve leak of publicity available European data on credit

losses, data on recovery rates of US corporate bonds ʹ the amount that
is likely to be recovered by a creditor if a company defaults, are used to
infer European recovery rates. But there is no standard or accurate,
methodology to do this. The data problem makes it more difficult to
apply statistical approaches, and so more subjective methods have to
be called upon.
These includes business report scores ʹ available for a small fee to
suppliers and purchasers of trade credit, based on liens, court actions,
creditor petitions and company age and size.

Credit scoring for such ͞middle market͟ companies relies on how an

individual bank interprets various financial ratios derived from a
borrower͛s financial statement and other data such as industry sector.
While the approaches are increasingly sophisticated, they are not
standardized and are difficult to compare and back-test against data.

The Credit Cycle we identified earlier looks set to change this. Banks are
recording that without standard ways to assess the credit risk in their
portfolios, it will be difficult to convince both regulators and credit
investors that loan and other credit-linked middle market portfolios
represent a specific level of risk. Meanwhile, major credit rating
companies have begun to promote modeling approaches for middle
market credits that weight the various financial ratios in a manner that
is standard and which can be more easily tested against the limited
historical data that is available.

Public credit ratings are not the only way to assess the credit risk posed
by larger companies. The most commonly used quantitative method is
based on principles expounded by the well-known academic and
researcher Robert Merton. These ͞Merton Models͟ consider the
company͛s equity as a call option on the value of the firm͛s assets, in
which the strike price of the option is related to the liabilities of the
firm. The equity value and its volatility, together with the level of
liabilities, provide information that allows the credit modeler to
estimate the default probability of the quoted company.
Traditionally, once credits have been measured or scored, a bank would
decide to accept or reject the implied credit risk of the transaction. But
the new credit risk modeling, pricing and transferring tools mean that
banks can now actively manage their loan portfolios to ensure an
efficient risk/reward ratio and sufficient diversification of loans ʹ much
as they would an investment portfolio.


)

) 
*

Credit rating are vital to the credit industry because they offer
consistent and publicly available credit scores, produced by
independent agencies, for either he credit worthiness of a major entity
or for a particular debt security or other financial obligation.

Ratings helps to determine how much companies and government

must pay for credit but they are also about to take on a new role in the
banking system under the Basle Committee͛s revised Capital Accord.
Within a year or two, they are likely to become one part of the process
that sets the amount of regulatory capital banks must put aside against
credit losses. However, the banking industry successfully argued against
the regulators plans to make rating agencies the cornerstone of the
regulatory capital calculation. Their argument was partly inspired by the
fact that there are only two big agencies on the world stage ʹ the banks
and the financial systems might have become dangerously dependent
on these agencies.

Although the agencies are independent, they are paid by the

companies they rate rather than by the users of ratings information a
conflict of interest that has to be carefully managed. Rating agencies
have also been criticized for poor risk estimation and for being too slow
to downgrade their existing ratings when problems appear.
The nature of changes in credit ratings over time, known as ratings
migration, is one of the key areas studies by those attempting to model
default probability. It͛s important both to the pricing of credit and to
credit risk management. If AAA rating can be shown to decay to a lower
rating only rarely, they are clearly a safer bet than if they turn out to be
volatile over time.

Historical data on public credit ratings are analyzed statistically to

determine the mathematical probability of a particular rating migration
to another rating within a given period. The information is often
presented in a transition matrix of the kind seen below. Matrices like
these can be used by institutions to determine maturity exposure limits
and to measure credit risk in the context of value at risk models.
However, there are significant technical issues associated with too
great a dependence on these matrices for risk management, as the
clickable button below explains.

c
 
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 *

The Basle Committee recently issues guidelines to help banks and their
supervisors to put in place a comprehensive credit risk management
program. The September 2000 paper, principles for the Management of
Credit Risk, highlighted four key areas:

@Y Establishing an appropriate credit risk environment.

@Y Operating under a sound credit granting process.
@Y Maintaining an appropriate credit administration.
@Y Measurement and monitoring process.
@Y And ensuring adequate controls over credit risk.
One of the areas that Basle is keen to stress is the importance of setting
and adhering to credit limits. Banks should set limits by customer,
geographic region and industry sector. Excessive credit exposure to one
or more countries, regions or industries is dangerous because of the
risk of default contagion between companies in the same region or
industry. Equally important is calculating accurate exposures against
the bank͛s credit limit. For some areas of the bank͛s business, this can
be particularly difficult. In the case of derivative portfolios, in particular,
there may be no clear relation between a contract͛s value at a
particular point in time and the potential credit exposure embedded in
it, as the button below explains. Once credit limits have been set, two
methods are increasingly being used by banks to mitigate their
exposure and help lower potential credit losses from derivatives:
netting and collateral. Most financial institutions now use bilateral close
out netting agreements to prevent a defaulting counterparty from
stopping payments on contracts with a negative value while demanding
payment on those with positive value.

The use of collateral has also grown dramatically in the last few years,
particularly in the derivatives market, where the amount a firm stands
to lose if counterparty defaults depend on how the market moves over
time.
 $  *

The function of commercial banking and application of the fundamental

principles of the depositor bank relationship have remained essentially
the same since about 500 B.C. Bank operation methods and
procedures, on the other hand, have undergone a constant process of
evolution because of economic growth, the mounting volume of
transactions and greater use of banking facilities.

As a result of these contributing factors, methods and practices

necessary to handle the increased volume of detail work have been
developed while another and quicker methods have been adopted in
order to cope with the increased volume, much of which has been
accomplished without unduly increasing the cost of doing business.

During the last twenty years we have experienced a constant transition

from the old to the new from manual to mechanical methods and
procedures from old established practices to current techniques and to
a more scientific approach to the solution of problems brought about
by day to day changes in business practices.

 # *

*+

The banking Business as we know it today is composed of three

separate and distinct principal functions.

1-YThe acquiring of funds to invest and loan.

2-YThe investing of such funds in loans and bonds.
3-YThe servicing of such funds, such as providing of checking/saving
facilities, and the collection of draft, notes and checks.
These functions, while differing in detail of operation, follow the same
principles established hundreds of years go by money-lenders and
exchangers.

#


͞Banks are institution that enjoys the public money doing nothing for
the public͟. According the banking ordinance 1962 sec (6),

͞Banks mean the acceptance of deposit for the purpose of lending or

the investment of deposit of money from the public repayable on
demand or otherwise withdraw able by cheques, drafts, orders and
otherwise͟

#


Banker includes a body of persons whether incorporated or not who

carry on business of banking.

 
#,

ABL is the first Muslim Bank established on territory that later on

became Pakistan. It was established on December 3, 1942 as
Australasia Bank at Lahore with capital of 0.12 million. At that time the
chairman was Kh. Bashir Baksh. ABL͛s story was one of the dedication,
commitment to professionalism and adaptation to changing
environmental changes the bank͛s history is divided into many phases.
During 25 years of united Pakistan the bank advanced forward in all
areas of its activities. 1970͛s were a difficult decade for all Banks of
Pakistan. In 1971 East Pakistan was separated and Australasia bank lost
its 50 branches and a lot of capital as well.
Nevertheless the growth steady, in 1974 all the banks were
nationalized including Australasia Bank.

Objects are as follows;

i.Y Main objective of Allied Bank is to earn profit.

ii.Y To provide services to their customers and assistance in the
development of commerce and trade.

Allied bank also have another responsibility to give service to their

communities. It watches the growth and development of his
community especially the commerce and business of the area.




*



Successful and profitable banking management depends on two

principal factors.

A.Y The manner in which the functions of banking, that is the

acquiring of deposits, the investing or converting such deposits
into earning assets and the servicing of such deposits are
performed.
B.YThe degree to which officers and employees contribute their
talents to the progress and welfare of the bank in discharging
duties and responsibilities.


c
# 

A great account to hold down the cost of your business checking

account. There are no monthly service charges or per check charges
when a $100 minimum balance is maintained plus there is no charge
for deposited items. Only $25 is required to open account.

-

This account enables sole proprietorships, municipalities and some

nonprofits to earn interest on account balances, with a $500 minimum
balance to earn interest and avoid monthly service charge.


*
 #


With our money market account you can get limited check writing
privileges plus the higher yields of an investment account. This account
offers a tiered interest rate.

 -

This account is an interest bearing operating account. Collected funds

deposited into this account, in excess of the FDIC insured deposit
balances, will be collateralized with U.S. Government and Agency
Securities.

c





The term credit management may be broadly distinguished into two

ideas or concepts. The first one mainly means the business owners
implementing credit management policies to receive the financial
obligations on time and avoiding bad debts. The second one mainly
means that if you are an American who is concerned about paying his
obligations on timely basis and thus being on the financial track
avoiding low credit ratings. However, these two meanings definitely
deal with debt management solutions the parties either being the
creditors themselves of debtors.
c
 
c



Credit score plays a very important role in anyone͛s life as a good credit
score opens great financial avenues for your future. With a good credit
rating you may be extended help for loans and credits and thinking of
the poor side with a poor credit rating you will always face a problem
availing a loan. Thus you must pay bills on time. You must pay off your
creditors before the due date. Pay off your credit card obligations. All
these things will help out to save your interest and late fees, which is
very high. You can save lot of your money. You should not be running
away from your creditors. You will have to coordinate with them and
see how cooperative they are. They all have specific debt management
plans that can benefit you. Don͛t run away from them or else you will
be landed up in a bigger trouble.

cc



 

c
  





You are a company or run a business. You can avail benefit of these
services to get your payments on timely basis. It will generate a cash
flow on the regular basis by efficient management and collection of
current and overdue credits extended. It maintains good client business
relationship. Of course for these services credit management
companies charge some fees. But it is truly worth it. It also helps to
verify the client͛s good will and credit standing before giving any credits
to them. By abiding by credit management policies specifically designed
for the company these companies check the credit worthiness of your
prospective client and saving a lot of your time and energy.


c
!"
#
  #

These services are extended to the individuals who find it difficult to

pay off their debts on time. For these people they design specific credit
management strategies. These companies negotiate with your creditors
and come up with ways that can be feasible to save on your credit score
and also bring you back on the financial track. It can apply to consumer
loans, credit cards, personal loans, outstanding medical bills, auto loans
etc. in all these cases, the company negotiates with the creditor on
behalf of the borrower who is in financial trouble. By doing so it enables
the creditors to accept the fraction of the obligation amount and thus
save money for the borrower and thus make him capable to stand up
efficiently again. A positive relationship exists between risk and profits.
So both risk and profit objectives should be balanced. Profit
maximization fails to take into account the time pattern of returns.
Profit maximization does not take into account the social
considerations. The objective of financial management is the same as
the objective of a company which is to earn profit. But profit
maximization alone cannot be the sole objective of a company. It is a
limited objective. It profits are given under importance then problems
may arise as discussed below. The term profit is vague and it involves
much more contradictions. Profits maximization must be with a
maximization must be attempted with a realization pf risk involves.

1-YFinancial management is Sources of Profit Management

The term credit management may be broadly distinguished into two

ideas or concepts. The first one mainly means the business owners
implementing credit management policies to receive the financial
obligations on time and avoiding bad debts.
The second one mainly means that if you are an American who is
concerned about paying his obligation on timely basis and thus being
on the financial bank avoiding low credit ratings. However, these two
meanings definitely deal with debt management solutions the partied
either being the creditors themselves or debtors.

2-Y Financial Management

It source of wealth maximization: the capitalization rate reflects the

liking the investors for the company. Methods of financial
management: in the field of financing there are multiple methods to
produce funds. Funds may be obtained from long term sources as well
as from short term sources. Long term funds may be procured by
owners that are shareholders, lenders by issuing debentures, from
financial institutions banks and the general public at large. Short term
funds may be available from commercial banks, public deposits, etc.

Financial leverage or trading on equity is an important method by

which a finance manager may be increased, the return to common
shareholders.