Business plan for a commercial bank

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Well, this article will be focused on starting your own bank from scratch and I will be using the banking system in Nigeria as reference point. The Company was founded by John Doe. The Company is registered as a corporation in the State of New York.

Financial services business plan pdf

However, this might prove very expensive and challenging as you may be up against other shareholders; who will fight tooth and nail to defeat your purpose. The third section of the business plan will further describe the underwriting services and investment management services offered by the Commercial Bank. This is so because they would definitely carry out their due diligence to be sure that they are dealing with someone the public can trust. To operate in the banking sector, you must have a first-hand idea of how the financial services industry works. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. Due to their influence within a financial system and the economy, banks are highly regulated in most countries. Below is a breakdown of how these funds will be used: 2. Because of the sensitive nature of the banking industry, the body regulating and monitoring banking operations are always on their toe. And you definitely cannot gain such experience by reading a book; you gain it by being practically involved in the industry. You just have to envision it, and work towards it. The last exit scenario would involve the use of a private placement memorandum to raise capital from private sources. Once your bank begins to enjoy customer goodwill, you are made. Below are the expected financials over the next three years. If you follow the steps stated above, and you get the right people to work with, then you might be able to build your bank from the foundation and get it to a level where it would be well accepted by the general public and you can be sure to start making profits. First understand the financial services sector The financial services sector is quite a complicated one and the reason is because it is a knowledge-driven industry.

Additionally, since the Internet has created a method of receiving information at a much faster rate, information relating to the credit quality of borrowers is readily available.

You could choose to start an investment bank, retail bank, business bank, mortgage bank, private or corporate banking. It is not uncommon for small lenders and thriftslike Commercial Bank, Inc. The first strategy would be to sell the Company to a larger entity at a significant premium.

Today, these individuals are self made.

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For instance the condition for starting a commercial bank is different from the conditions of starting a micro finance bank. First understand the financial services sector The financial services sector is quite a complicated one and the reason is because it is a knowledge-driven industry.

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A feasibility study will help you determine the flaws in the banking sector and how you can leverage such flaws to create a competitive advantage. For each owner or key employee, you should provide a brief biography in this section.

Bank business plan pdf

It is also important to note that you can chose a niche for your bank based on the area of need you intend servicing. Doe has more than 10 years of experience in the commercial banking industry. So before you make up your mind to start a bank, know exactly what you want and then go for it. As time continues, Commercial Bank, Inc. Below are the expected financials over the next three years. Obtain and Study the Procedures for Application No doubt starting a bank has loads of requirements that you must meet before you can be granted a license to operate. The Founder is also undergoing the process of acquiring the needed licensure to operate this business. Or you need a sample bank business plan template? A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. These banks have different requirements for obtaining license. It is also advisable to establish your bank in an unbanked community if you want to avoid competitions and if you are ready to face some of the challenges common with such locations. Register Your Bank If you have obtained your license, the next thing to do is to go ahead and register your bank. The third section of the business plan will further describe the underwriting services and investment management services offered by the Commercial Bank. Below is a breakdown of how these funds will be used: 2. The Company was founded by John Doe.
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