Farid Monir

  What Is the Difference Between a Loan and an Investment? When it comes to financing options, loans and investments are two common terms that often get used interchangeably. However, it is important to understand that these terms refer to different financial transactions with distinct characteristics and implications. In this article, we will explore the differences between loans and investments, to help you make an informed decision about which option suits your financial needs. Definition and Purpose: A loan is a sum of money borrowed from a lender that must be repaid over a specified period, usually with interest. Loans are generally used to finance specific purchases or projects, such as buying a house, starting a business, or paying for education. The borrower assumes the responsibility of repaying the loan according to the agreed terms and conditions. On the other hand, an investment refers to the allocation of funds with the expectation of generating a return or profit. Inv...

Booth Banking operation is characterized by banks availing almost all of its services through a much smaller office space and employees where every booth is under the close supervision of one of the banks fully operative traditional branches. All the Booth branches are to be considered as an extended part of the controlling branch. Sub-branches adding new horizons to banking services Zillur Rahaman The banking sector of Bangladesh is one of the most important sectors of the financial arena and the coverage of this sector is increasing at a steady rate. At the same time, the overall services of the banking sector are increasing, banking system is being modernised and customers are getting banking services faster than ever before. Now the major driving force for economic growth in any country is the banking sector. The banking sector plays a vital role in various activities including deposit keeping, money transactions, providing various types of credit services, ensuring long term inves...

  Advance Payment Guarantee Introduction In trading business, it’s common for buyers to request sellers provide advance payment guarantees. This is because buyers want to protect themselves against any default from the seller’s side or failing to deliver the goods or services as per the agreement. The workings of advance payment guarantee are enlightened in this tutorial. Define Advance Payment Guarantee An advance payment guarantee is a financial tool promising the buyer that as per the agreement, the goods or services will be delivered post advance payment to the seller. The bank preserves this guarantee to protect the buyer from any loss caused by the seller. How Advance Payment Guarantee Works ? The buyer requests an advance payment guarantee from the seller. The seller then approaches their bank or financial institution to issue the guarantee. The bank or financial institution issues the guarantee to the buyer, promising that the seller will deliver the goods or services after...

  Net worth is the total value of all assets minus any liabilities. Put simply, net worth is what you own minus what you owe.  Calculating net worth can be a helpful way to determine one’s wealth and the overall health of a person’s or company’s financial situation. It can also help you figure out what you may need to do to reach your financial goals. Key takeaways Net worth is the total value of assets minus any liabilities or debt. Net worth can be a helpful snapshot of a person’s or company’s wealth. Positive net worth might be a sign of good financial health. Negative net worth might be a sign of poor financial health. How to calculate your net worth To calculate your net worth, subtract any debts and liabilities from the total value of your assets. In other words, subtract what you owe from what you own.  To do this, you’ll first need to add up your assets and liabilities, which can take a little bit of time. Here’s how to calculate net worth. 1. Add up your assets A...

Security- Concept & Types Characteristics of good Security Proper Valuation of Security: One of the most important functions of a bank is to employ its fund by way of Investments/loans and advances to its customers and a bank’s strength depends considerably on the quality of its Investments/loans and advances. Though the banks are now expected to lay greater emphasis on the purpose for which the customer needs Investments/loans and advances rather than security he can afford to give, security continues to be one of the most important factors which determines to a significant extent the banker’s willingness to invest/lend money. Most of the Investments/loans and advances granted by banks are secured against varied types of assets. Banks take/borrow money/fund/deposit from the people without security. Banks don’t usually invest/deploy money/fund/deposit to the people without security. What is Security? A security is an interest or a right in property given to the bank/FI/creditor/inv...