banking topics for discussion

Learning about economic concepts can help you to understand the news, make financial decisions, shape public policy, and see the world in a new way. Foreign Direct Investment (FDI) in the retail sector good for India: Agree or Disagree? Please refer to our full privacy policy. All rights reserved. Are you too old? Do you think I have still my chance? IREDA Recruitment 2022: Apply For 21 Posts at ireda.in Till Oct 21. Assume the Indirect Method for the Cash Flow Statement.. Defence Colony, New Delhi, Or has #MeToo been used as an instrument of personal vendetta to make character assassinations? Discussion Groups Discussion Groups Back. SRA discussion paper: next steps on SIF and consumer protection for negligence claims Law Society response Post six-year run-off cover provides necessary protections for consumers of legal services and solicitors alike. Thank you Brian for your blog! Critical Capabilities for Cloud Infrastructure and Platform Services (CIPS) These questions are not that important unless youve had extensive deal experience that the interviewers plan to dig into but they do require extra research and preparation. For example, the Change in Working Capital is usually negative for retailers because they must spend money on Inventory before being able to sell their products. The math works because leverage amplifies returns; the PE firm earns a higher return if the deal goes well because it uses less of its own money upfront (and it earns an even lower return if the deal goes poorly!). Hello, and welcome to Protocol Entertainment, your guide to the business of the gaming and media industries. Live Human shield a clever strategy or an inhuman act? On the L&E side, Debt is down by $20 and Retained Earnings is down by $12, so the L&E side is down by $32 and both sides balance. Breaking news, live coverage, investigations, analysis, video, photos and opinions from The Washington Post. Maintain eye contact while presenting your views. assessments. You can participate in any topics and express your thoughts. Save my name, email, and website in this browser for the next time I comment. Is Corruption in the Economy the root cause for the Indian Economic slowdown? Required EBITDA = $150, since $1,500 / 10 = $150. After 8 years, the fsa.gov.uk redirects will be switched off on 1 Oct 2021 as part of decommissioning. On the other hand, it has also incurred more burden on employees because the flexibility of work timings can lead to additional workload given to them. Banking The best 3-year CD rates for October 2022. You then combine the Income Statements, reflecting the Foregone Interest on Cash, Interest on Debt, and Synergies (for both revenue and expenses, but if you have to pick one, cost synergies are more important). In Step 2, you create a Sources & Uses schedule to calculate the Investor Equity paid by the PE firm. Are dialogues with Pakistan the only way to solve the crisis in Jammu & Kashmir? Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. QUESTION: A company goes from 20% Debt / Total Capital to 30% Debt / Total Capital. Economics affects everyones lives. But if your Discount Rate is 20%, you would pay $100 / 20% = $500. QUESTION: A company buys a factory using $100 of debt. Put simply, to succeed in investment banking interviews, you need to put in the time to study accounting, finance, valuation, and M&A and LBO modeling. In a professional setting, there is a need for people to work together as teams. You had lower grades and went to a state school. Three compulsory sections: Section A has 10 multiple choice questions (MCQs) worth 10 marks. Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Enterprise Value stays the same because Cash is a non-core-business Asset, or because the reduced Cash and reduced Equity Value offset each other. Youre also motivated to stay in banking for the long term because its your actual end goal; almost everyone from elite schools wants to get into private equity ASAP, which runs contrary to the long-term commitment that banks are now trying to encourage. Why should I hire you over him?. Its tough to say how a DCF model stacks up because its far more dependent on the assumptions and far-in-the-future projections. Why should I care about economics? Since you have experience at various banks and are not exactly a career changer, though, you should probably start by applying to top MSF programs right away. Microsofts Activision Blizzard deal is key to the companys mobile gaming efforts. ANSWER: Initial Investor Equity = $100 million * 10 * 40% = $400 million. In India, this debate is going on for a long time now that Indian cinema is exploring taboo topics. But, in a society like India in which old traditions and religious sensibilities are held sacredly, it is not a practical idea to deliver unfiltered content. But Id suggest that everyone is over-complicating it. All students, freshers can download Group Discussion topics with answers as PDF files and eBooks for free. There are no huge differences for Associate-level candidates, as the same topics and types of questions tend to come up. Section C has two data response stimuli with questions worth Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed Interest Payable is pointless because the interest is not going to remain a payable for a year. But just in case, see the Why our bank? article. Were you a failed candidate?. You then discount the Terminal Value to Present Value using WACC and add it to the sum of the companys discounted UFCFs. compliance issues. We may eventually write something on Hirevues, but it almost feels silly. Community Banking Connections A Supervision and Regulation Publication Live is a popular webinar series that digs deeper into consumer compliance topics of interest. Brian, I have been reading your blog for more than a year and it would be a great pleasure to hear your advice. QUESTION: What does the internal rate of return (IRR) mean?. Hi Brian, for the problem on company buying factory using $100MM in debt, I think you should also include $10MM interest paid in CFO and reduce Interest Payable by $10MM at year end. Supporting and advocating for the legal profession and safeguarding the rule of law are at the heart of what we do. But often the question Why Group Discussion? comes to mind. We've responded to the Solicitors Regulation Authority's consultation on replacing the Solicitors Indemnity Fund (SIF) with new consumer protection for post six-year negligence. Hey, was just wondering of you could do an article on Hirevues. They factor in, but no one knows by exactly how much because banks do it differently and never disclose their methods. Often employees in an organization compromise on the quality of their work solely because they have to complete their tasks within a specified time frame. For more on this topic, please see our guide to EBIT vs. EBITDA vs. Net Income, QUESTION: Which of the main 3 valuation methodologies will produce the highest valuations?. Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. QUESTION: Youve changed jobs twice in the past two years, and now youre trying to switch once again. Part of the USA Today Sports Media Group BigBlueInteractive SM provides news, analysis, and discussion on the New York Football Giants. The PV might decrease if the opposite happens. is a Before applying, candidates should ensure that they fulfill the eligibility criteria for the post as of the date of eligibility. No. It is always tricky and surprising but most of these ideas relate to the current affairs, general knowledge, global politics, great personalities, prevalent ideas and social issues, amongst others. That gets you to Cash Flow from Operations. ANSWER: The Change in Working Capital tells you if the company needs to spend in advance of its growth, or if it generates more money as a result of its growth. Importance of Social Media Marketing for Every Business. ANSWER: This one is a combined strengths/weaknesses question. Learning about economic concepts can help you to understand the news, make financial decisions, shape public policy, and see the world in a new way. This site is owned and operated by Big Blue Interactive, LLC. GD Topics for Placement on Current Affairs, Difference Between Democracy and Dictatorship. ANSWER: You apply a Terminal Multiple, such as an EV / EBITDA figure based on the comparable companies, to EBITDA in the final year of the forecast period, or you pick a Terminal FCF Growth Rate and use a variation of the Company Value formula: Terminal Value = Final Year FCF * (1 + Terminal FCF Growth Rate) / (Discount Rate Terminal FCF Growth Rate). It will be almost impossible to describe your 3 strengths and 3 weaknesses in 30-60 seconds, so pick 1 in each category and give a quick story to support it. Then, you estimate the Purchase Price and the mix of Cash, Debt, and Stock used to fund the deal. Your email address will not be published. You can expect any topic when you are appearing for a group discussion. Australia, Meet 75+ universities in Mumbai on 30th April, Register for Uniconnect - Aus & NZ Virtual University Fair (Nov 11, 2022 - 12 Noon to 2 PM). Even if its true, never admit this. The European Banking Authority (EBA) today published a Report on the reliance of the EU financial sector on counterparties, operators, and financing originating from outside the Single Market. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. The problem is that that formula assumes the companys Discount Rate and Cash Flow Growth Rate never change but in real life, they keep changing until the company reaches maturity. 20% IRR Over 5 Years = ~2.5x multiple (2x = ~15% and 3x = ~25%). On the Balance Sheet, PP&E is up by $100, and Debt is up by $100, so both sides balance. If its beyond 2-3 years, it will be tough to win Analyst/Intern offers. Then, adjust this Net Income number for any non-cash items such as Depreciation & Amortization. ANSWER: You could use any of your 3 short stories here, depending on what theyre about. It shows that one has the ability to listen, think and speak your mind effectively. Are your grades on the low side? Please enable JavaScript. Studied Economics in Spain with an overall average of 7/10. On the BS, Cash is down by $22, and PP&E is down by $10, so the Assets side is down by $32. Discussion Groups Discussion Groups Back. So is the Fed private or public?. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Get notified about the latest career insights, study tips, and offers at Leverage Edu. (A-level You use 5x Debt / EBITDA to fund the deal, and the company repays 50% of that Debt over 5 years, generating no extra Cash. This minimum amount, commonly referred to as the commercial bank's reserve, is generally determined by the central bank on the basis of a specified proportion of deposit liabilities of the bank. Explore Commercial Banking. QUESTION: Walk me through an Unlevered DCF.. Has #Metoo movement really triggered any tectonic shift in the harassment culture against women? Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. 2022 Leadership Vision for Infrastructure & Operations which highlights three strategic priorities I&O Leaders should be focusing on for 2022. This means that you are just discussing your opinions with other candidates, not the evaluator. It is worthless to debate the special status of Jammu & Kashmir. Bank of Baroda Recruitment 2022: Bank of Baroda has released a recruitment notification. Interested candidates can apply online by visiting the official website of the Bank at bankofbaroda.co.in. One compulsory case study consisting of approximately seven It is advisable to take the following points into consideration while preparing for the GD topics for placement: With this, we hope you are familiar with the popular GD topics for placement and how to tackle them efficiently. Explore Commercial Banking. Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. Check Eligibility Here, NEET UG Counselling 2022 Likely From October 10 at mcc.nic.in; MCC Issues Key Points For PwD Candidates, BPSC 67th CCE Prelims Re-Exam Answer key 2022 Released at bpsc.bih.nic.in; Direct Link Here, Download Bank Of Baroda Recruitment Notification, Online Registration of Application starts from: September 29, 2022, Last date for Online Registration of Application & Payment of fees: October 20, 2022, Group Sales Head (Virtual RM Sales Head): 01 post. Outlook Most loans have interest payments that are due on monthly, quarterly, or semiannual schedules. The Seller has a Net Income of $10 as well. Breaking news, live coverage, investigations, analysis, video, photos and opinions from The Washington Post. document.write(new Date().getFullYear());. ANSWER: Initial Investor Equity = $100 * 10 * 50% = $500. Lets discuss. How to prevent COVID third wave in India? Topics. For MBA selections, GDs highlight this quality in candidates. QUESTION: Without doing any math, what ranges would you expect for the Combined EV / EBITDA and P / E multiples, and why?. The Asian Banker is a leading provider of strategic intelligence and builder of platforms on the financial services industry, established since 1996. ANSWER: You cant tell unless its a 100% Stock deal. After my degree I did a two year graduate programme in the same bank in which I rotated through different departments. The companys EBITDA grows to $150 million by Year 5, but the exit multiple drops to 9x. These should come from your work experience, but 1-2 can be from school if youre an undergrad or recent grad. That has been your goal since you started out in audit, but you knew you couldnt just move directly from audit to IB. Borderless world: Is it a myth or brooding reality? Then, you combine the Balance Sheets of the Buyer and Seller, reflecting the Cash, Debt, and Stock used, new Goodwill created, and any write-ups. permit the individual who disagrees with the refusal of the agency to amend his record to request a review of such refusal, and not later than 30 days (excluding Saturdays, Sundays, and legal public holidays) from the date on which the individual requests such review, complete such review and make a final determination unless, for good cause shown, the head of the agency extends The European Banking Authority (EBA) today published a Report on the reliance of the EU financial sector on counterparties, operators, and financing originating from outside the Single Market. But just in case, see the Why investment banking? article. ANSWER: Your greatest strength should be easy (see the list above pick one and support it with a quick story). Fact vs Opinion: There are no facts only opinion. popular webinar series that digs deeper into consumer compliance topics Enter for latest updates from top global universities, Enter to receive a call back from our experts, Scan QR Code to Download Leverage Edu App, How is Technology changing the face of education, Popular GD Topics for Placement with Answers, Work From Home Advantages and Disadvantages, Open Book Exams Advantages and Disadvantages. This rate is commonly referred to as the reserve ratio. Microsoft is quietly building a mobile Xbox store that will rely on Activision and King games. see on our website or in our publications, please email us at Ahead of this, please review any links you have to fsa.gov.uk and update them to the relevant fca.org.uk links. But the truth is, these questions are almost irrelevant unless you say something stupid or inappropriate. Investment banking interviews are not rocket science, and this article will unpack every type of question youre likely to face in banking interviews (and how to answer them). BY Ivana Pino. Free Exclusive Report: 57-page guide with the action plan you need to break into investment banking - how to tell your story, network, craft a winning resume, and dominate your interviews. As of June 2021, 360 banks controlled by non-EU entities were operating in the EU representing 12% of the Unions total banking assets. The key preparation point is this: Rather than memorizing 541,763 questions and answers, you should focus on the main question categories and make sure that you have stories and examples prepared for them. Discussion Groups; Discussion Groups Overview; Ag Bank Network; Bank Operations Network; Bank Risk Network; CECL Network; Find resources on commercial banking topics like C&I loans, small business, CRE, ag banking and more. But the Change in Working Capital is often positive for subscription-based companies that collect cash in advance because Deferred Revenue increases when they do that. There is really not much to say, and most of its common sense (wear clothes, look at the camera, do it in a quiet spot so your roommate doesnt come barging in, etc.). Combined Enterprise Value = Buyers Enterprise Value + Purchase Enterprise Value of Seller = $250 + $150 = $400. Then, you compare this sum the companys Implied Value to the companys Current Value or Asking Price to see if its valued appropriately. A-258, Bhishma Pitamah Marg, This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. Discussion Groups; Discussion Groups Overview; Ag Bank Network; Bank Operations Network; Bank Risk Network; CECL Network; Find resources on commercial banking topics like C&I loans, small business, CRE, ag banking and more. Do not start speaking too quickly. SRA consumer protection for post six-year negligence Law Society response. The significance of Article 360 for Jammu & Kashmir and for the rest of the nation. The European Banking Authority (EBA) today published a Report on the reliance of the EU financial sector on counterparties, operators, and financing originating from outside the Single Market. Your contact details will not be published. (A-level Microsoft is quietly building a mobile Xbox store that will rely on Activision and King games. You can expect any topic when you are appearing for a group discussion. The questions tend to be very simple fit-based ones as well. Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets. Following are some reasons how GDs help in understanding the potential of candidates: There are a number of students and alumni from IIM who have shared their GD/PI experiences on the internet. Section B has short answer questions worth approximately 20 marks. These questions are less important than those in the other technical categories above, but you should still know the basic concepts. You usually estimate the Cost of Equity with Risk-Free Rate + Equity Risk Premium * Levered Beta. Microsofts Activision Blizzard deal is key to the companys mobile gaming efforts. Investment Banking Interview Questions Category 1: Your Story. Candidates are required to have a valid personal email ID and Contact Number. To work in a top PE firm (KKR, TPG) in at least 5 years, would it make sense to directly study an MBA in a top uni and then work between 2-3 years in IB? If they do significantly matter, do you have any tips on how to prepare for them? EV / EBIT is better when you want to exclude capital structure but partially factor in CapEx and Depreciation. They are the most common topics, especially in entry-level interviews. Why do you think your skills are relevant to this industry?. With 68% population in Jammu & Kashmir, Muslims need not be treated as a minority. During the ongoing pandemic, most companies have asked their employees to work from home. making to improve operational performance, Decision Published Date: October 2, 2022 7:44 PM IST, Updated Date: October 2, 2022 8:00 PM IST. The P / E multiple is not terribly useful in most cases because its affected by different tax rates, capital structures, non-core-business activities, and more so, you often use it in the interest of completeness or because you want a multiple that reflects a companys true bottom line. To learn more about, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking, Intelligent Preparation For Interview Questions, Investment Banking Interview Question Category 1: Telling Your Story, Question Category 3: Deals, Markets, and Companies, What NOT to Worry About: Brain Teasers and Questions to Ask, you started out in audit, went to a boutique valuation firm to gain client and valuation experience, Equity Value and Enterprise Value (YouTube), Valuation Metrics and Multiples (YouTube), Discounted Cash Flow (DCF) Analysis (YouTube), Leveraged Buyouts and LBO Models (YouTube), How do Equity value and Enterprise Value change in each step, WACC decreases at first because Debt is cheaper than Equity, Merger Model Interview Questions Slide Format, Merger Model Interview Questions Sample Excel File, LBO Model Interview Questions Slide Format, returns driven by EBITDA growth and Debt paydown instead of multiple expansion, https://mergersandinquisitions.com/age-investment-banking/, http://rankings.ft.com/businessschoolrankings/masters-in-finance-pre-experience-2018, https://mergersandinquisitions.com/investment-banking-masters-programs/, https://mergersandinquisitions.com/investment-banking-associate-exit-opportunities/. Since both companies have the same tax rate and since no Cash or Debt is used, Combined Net Income = $10 + $10 = $20, and Combined EPS = $20 / 16 = $1.25, so the deal is 25% accretive. You also show the full proceeds, $80, in Cash Flow from Investing, so cash at the bottom is up by $88. Bank of Baroda Recruitment 2022: Bank of Baroda has released a recruitment notification. But you can say that Precedent Transactions often produce higher values than the Public Comps because of the control premium the extra amount that acquirers must pay to acquire sellers. Required fields are marked *. There is only one question in this category, though it may be phrased in different ways: Tell me about yourself. Ahead of this, please review any links you have to fsa.gov.uk and update them to the relevant fca.org.uk links. (A-level For example, you worked long hours and finished a last-minute task for a pending deal in your internship, which resulted in a successful close, but you could have been more proactive when following up on assignments and asking for the next steps. The future of the Solicitors Indemnity Fund (SIF) is being discussed by the Solicitors Regulation Authority (SRA), as it considers next steps for the fund Consumers and firms to benefit as SRA reconsiders closure of SIF. If you ever Google investment banking interview questions, you could easily find yourself depressed. Leverage Edu Tower, Formulate your thoughts and only then begin the discussion.

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