Question by Artyom: Can principles of structured finance be used in single bank management?
bank usually takes money and gives them as loans. Is there any theory about structured finance principles used in single bank management. Make tranches by persons who give bank money, and paying them back by waterfall rules.

Best answer:

Answer by Mohammad
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1. By ‘single bank management’ do you mean ‘unit banking’ (that banks having only ‘single’ office, as distinct from ‘branch banking’ with many offices)?

2. Any way, whatever type of bank you have in mind, the principles of bank finance are same for all the types of banks.

3. Usually, Central Banks of a country (or banking regulatory authorities) issue general guidelines to banks in regard to bank finance.

3. So, the bank you have in mind can follow the structured finance, if it has the necessary expertise and the organisational strength.

4. Please go through a book “Structured Finance: A Guide to the Principles of Asset Securitization” at:

http://books.google.co.in/books/about/Structured_finance.html?id=Fg6g_-4BZp8C&redir_esc=y

5. You may also visit the relevant sites at the following link, for more information:

http://in.search.yahoo.com/search?p=structured%20finance%20principles
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