The Benefits of Bank Reconciliation Services

Bank reconciliation is a process that explains the difference between a balance shown in an organization’s bank statement, as supplied by a bank and the corresponding amount shown in an organization’s own accounting records at a certain point of time.

Organizations can reconcile an accounting difference by tallying every transaction of the bank statement and an organization’s cash book. However, it is a very tedious and time consuming job. A service provider takes care of end-to-end bank reconciliation services.

Some of the common accounting errors that occur while reconciling are, a check or a list of checks issued by an organization not being presented to a bank, differences in bank transactions such as credit received or extra charge imposed by a bank hasn’t been recorded in an organization’s books and so on. To overcome or resolve such errors, entrepreneurs need an expert to handle their bank reconciliation functions. They do the necessary modifications in the cash book and the differences are recorded, to assist an entrepreneur for future reconciliations.

Reconciliations are performed by dedicated account professionals by using advanced software. It is important to have an understanding of what errors might occur and how to rectify them for a successful reconciliation.

Bank reconciliation services helps in reviewing an organization’s bank balance as per their own record books and balance sheets issued by banks. This service also helps in rectifying entries that cause a difference between the two balances. Timely reconciliations allow enterprises to identify and prevent intentional fraud, along with finding errors made by bank representatives, accountants, employees and management. Though bank reconciliation is usually a month-end procedure, organizations with smaller cash resources might also carry out the process weekly (if required).

What are the benefits of reconciliation services?

Detects Fraud

With the help of the bank reconciliation process, an organization matches its distributed checks with the amount or entry entered in bank statements. A vigilant review based on proper sheets and procedures help to disclose fraudulent activities such as payment made for illegitimate business purposes, payments transferred to illicit employees or unauthorized vendors and not revising sanctioned check amounts and details.

Prevents Overdraft

The on-hold time between cash outflows to vendors and employees as well as payments coming from clients and customers can vary greatly. This particularly affects an organization with very low cash reserves. Regular bank reconciliations help entrepreneurs manage or postpone payments that may safeguard organizations from business overdrafts, bounced checks, insufficient funds and extra interests.

Identifies Bank Errors

Bank representatives may make accounting errors such as transfer wrong sum, record wrong check amount, enter the amount in a wrong bank account, omit an entry from an organization’s bank statement or record a duplicate transaction. Reconciling bank accounts give entrepreneurs time to notify a bank of its errors, allowing them to find the difference and correct the error.

Improves Collection

Bank reconciliations let organizations handle their accounts receivable better. When a customer’s payment is cleared from a bank, the receivable remains no longer outstanding and therefore, requires no further action. However, if a client’s check doesn’t clear, that alerts management to be more focused in its collection process.

Foreclosure Process And Foreclosure of Mortgage May Contain Bank Lender Mortgage Contract Fraud

The foreclosure of a mortgage is a simple foreclosure process where a home owner fails to make a monthly mortgage payment to the bank and the banks takes the borrower’s home or commercial property. Both home and commercial property foreclosure process work basically the same way for a foreclosure of the mortgage. In many cases, the bank lender commits mortgage contract fraud.

You have underwater value and want a loan modification
You fail to make the mortgage payment due to financial situations
Bank gets paid by insurance company and IRS
Bank starts foreclosure of mortgage in a foreclosure process in court as plaintiff
You do nothing and let the bank take your property easily
You fight the bank foreclosure of mortgage and process in court:

A. Bank wins 99.9% of cases

B. Home owner or commercial property owner wins free and clear mortgage 97% to 99% of foreclosure cases

Being underwater in value means that your home or commercial property is worth less than what you owe on your mortgage. You ask the bank that you make your monthly payments to for a mortgage loan modification under the government program and the bank tells you that you have to miss a few payments to qualify for the modification. You don’t pay your mortgage for one or two months and apply for the modification. While you are in the modification process the bank gives you a notice of default and starts a foreclosure. You don’t know why the foreclosure process was started.

You become ill, have an accident, lose your job, have a job transfer, or some other financial situations and setbacks and fail to make your mortgage payment. The banks sends you a collection notice as a debt collector under TILA. You cannot pay, so you miss another payment. The bank gives you a notice of default and starts a foreclosure process against you to take your home or commercial property.

On the 91st day of you failing to pay the bank, the dirty bank collects the insurance money for the full amount of the loan from the mortgage insurance company that you have been paying since your mortgage and note closing upon purchase. The bank also collects 85% of the total amount of your note and mortgage loan from the IRS. The bank and all third parties have been paid in full for the loan.

Then the bank gives you a notice of default and starts the foreclosure of mortgage in a foreclosure process against you in local court as the Plaintiff, the one being harmed, to take your home or commercial property.

You do nothing and let the bank take your property easily while thinking, ‘Let them have the damn home or property.” and wait for God to help you keep your home or commercial property. You let the bank have your property and are evicted by the sheriff and lose your home and most of your possessions that you left in your home or property, because the sheriff only gives you up to 15 minutes to take what you can out of the dwelling and locks the doors for the bank to resell.

You fight the bank foreclosure of mortgage and foreclosure process in court with two different outcomes.

A. The bank wins 97% of cases, because you go into court, Pro Se, without an attorney, with your Federal laws and State statutes and feel confident that you are going to win your foreclosure, but you don’t know the court rules. The judge does not listen to you, because the foreclosing attorney tells the judge that you are a deadbeat and want your home or commercial property for free and you are behind on payments and in default as per your mortgage contract that you signed. The judge, being an attorney card carrying member of the BARR corporation the same as the foreclosing attorney, listens to the attorney and allows the foreclosure of mortgage to be carried out and you lose your home or commercial property. OR…

B. You, the home owner or commercial mortgage property owner are prepared with an attorney representing you and proper evidence, proof that the mortgage and note have been paid in full by you with a BOE or bonded promissory note, dishonored Notary admin process, and the best securitization audit, with expert proof of bank fraud and go in front of the judge. Your attorney argues your case and the judge finds that you prevail and win the case and signs the final order to dismiss the case with prejudice, release and remove your mortgage lien and give you your home or commercial property without any more payments, because the bank and all interested parties were paid in full many times. This happens in 97% to 99% of all foreclosure of mortgage cases in the United States with help from a little known consumer advocate company.

This is the Foreclosure Process And Foreclosure of Mortgage That May Contain Bank Mortgage Contract Fraud. Are you going to fight to keep your home or property?

Managing Risks In Core Banking Replacements

Survival of the Transformed

I arrived at the symposium half expecting last year’s critical themes again. Why would I expect a change-after all, the world of core banking technology had not changed all that much in the last 18 months – or had it? A couple of years ago, at the same symposium, all I heard was that core banking solution replacement was an idea whose time had NOT come. The risks were just too great, said experts. Others opined that the costs of such a dramatic change in the technology infrastructure were just too high to justify undertaking the risk. And as I considered these views very objectively, I realized that they were all correct. The risks were indeed very high, costs potentially bordering on the prohibitive and in-house systems had indeed served the purpose. However, what I had heard at this year’s session was refreshingly different. There was still widespread cognisance of the risks and costs, but there was something else in the air, an acknowledgement of the fact that banks, irrespective of size and geography, face the dual challenge of cutting costs and increasing internal efficiencies, with the ultimate aim of improving margins, which are clearly under strain. There are visible signs of large global and regional banks willing to take the plunge. While some openly stated their intentions to consider a core banking solutions replacement, there were some others who had already taken the first steps towards this brave move. More than one global bank is considering a new application -if not in their home market to start off with, then at least elsewhere.

This is a significant step and I strongly believe that all it requires is a couple of successful migrations before this develops into something like a wave.

What then are the risks that banks should take cognisance of, before embarking on what is clearly going to be the single biggest technology initiative within the bank?

Vendor or partner risk

Analysts rate this as the single biggest risk while evaluating enterprise applications. After all, if a core banking systems replacement is going to be the single biggest initiative, the solution provider should be a partner rather than a vendor. There are various questions to be considered while evaluating a vendor’s credentials.

Some of these are:

Is the vendor financially strong?

It is imperative that the vendor is financially very strong, and capable of tiding over the bad times so as to be able to capitalise during the good times.

Is the vendor committed to the business?

It is vital for a vendor to have a long-term view of the banking business just as a bank would have. They should understand the business, make regular investments to track and understand the business, and above all, give it the focus that it deserves.

Does the vendor conform to quality standards?

For a software vendor, adherence to various quality standards is of paramount importance.

What do others have to say?

The different accolades received pertaining to corporate governance, the quality of management and their vision, and so on are positive indicators. Vendors of core banking solutions are more than just developers of another piece of software and banks are recognising this.

Solution risk

At the end of the day, a solution is what the bank buys. And therefore, evaluation of the solution itself is very important. For example, it is expected that the vendor would invest in benchmarking the solution features against best practices as its geographic footprint grows. Critical evaluation of solutions by research analysts and consultants also can provide banks with key insights into the solution. Banks should also look at the vendor’s strategy in future-proofing the solution for emerging requirements.

Technology risk

It is a must that a bank’s partner is at the cutting edge of technology. For example, a few years ago, the adoption of web technologies was considered necessary-and solutions, which had adopted these technologies early and web-enabled their systems, were clearly the more progressive ones. In today’s environment, experts are talking of Web Services and a Services Oriented Architecture (SOA), so solutions that conform to this are obviously more than a step ahead. There are other factors to be considered too, such as:

Is the solution scalable?

Banks should closely look at vendors who have performed scalability benchmarks. However, the (real) proof of the pudding is in the number of ‘live’ sites say 500 branches, or where transactions volumes per day are more than 5 million..

Is it based on open and inter-operable standards?

The core banking solutions will co-exist with other internal and external applications. It is important that interfacing and integration capabilities are proven beyond doubt.

Implementation & support risk

The banking world has seen many projects fail. It is often said that selecting a vendor is the easier part. The more difficult and challenging part is, of course, carrying the project through to a successful implementation. An experienced vendor with impeccable implementation credentials is one who has managed all challenges well. Some of the key questions that banks should be asking while evaluating this risk are the following:

How Does the product require large-scale customisation? How will this be managed as part of the implementation plan?
Will the vendor make many changes to source code on-site?
What is the implementation methodology that the vendor adopts? Is it comprehensive and does it incorporate aspects that are critical to the bank itself?
What is the vendor’s track record with implementations? A clean track record here is a significant plus, as there are not too many vendors who can claim to not have even a single failed implementation.
Does the vendor have experience with different types of implementations-in different geographies, big bang migration as well as phased roll-outs, etc. A related but an equally important issue is the post implementation support that vendors provide.

Positive pointers that banks should be looking at are:

What is the vendor’s strategy for post implementation support?How many levels of support does the vendor provide?
Is the vendor equipped to handle support in different parts of the world?
How do upgrades and enhancements come to the bank after implementation has been completed?
What do long standing customers have to say about post implementation support?

Concluding remarks

It is important that banks take a holistic view while considering the replacement of their core banking platform. While the benefits of implementing packaged solutions built on modern technology are all too obvious, one cannot deny that such an exercise is fraught with risks. The risks can be mitigated and managed-a good starting point would be for the bank to recognise the different risks and consider strategies to mitigate them. As I said at the outset, the perspective at this year’s symposium was refreshingly different. I am confident that next year, the mood will be a lot more optimistic as it will be built on the plank of successful implementations by the few courageous banks which have taken the first steps. And these banks would be those which would have evaluated and managed the different risks successfully.

Bank Foreclosed Homes – A Guide Through the Market

I think it is so easy now to get extra information about the foreclosed, particularly when the matter is concerned with the bank foreclosed homes. Do you imagine that there is that famous augment that in the amount of bank foreclosed homes is threatening as saleable possessions registered a radical turn down in prices? Yes, in addition, you can aware that the real estate experts are worried that the roughly 30 percent felled in profitable asset rates will suspend proprietors with mortgages in excess of the worth of their homes.

Additionally, you can be informed that the majority of these saleable possessions have been seeing a radical fall in prices, was bought at the climax of the real estate market. The experts informed, a number of the saleable possessions that proceeded into bank foreclosure are just a part of the future foreclosures.

On the other hand, the American property experts describe that the second assault of foreclosure will not happen until after more than a few years and most of mortgage loans removed from 2005 to 2007, are listed to grown-up in 6 or 7 years.

Again, you can see that the majority proprietors of moneymaking possessions who have taken the loans that are larger than the prices of their homes have been endeavoring to talk with loaning organizations to pull out phrases to let them to locate methods to keep away from foreclosure.

Notwithstanding, most proprietors are looking upon such a foreclosure as a very last option can be provided to them. Those who are harshly distressed by the radical fall in business property prices are developers who bought apartment projects and are having complexity putting them up for sale.

How to Purchase Bank Foreclosed Homes

Now, there is that important question, which needs to be answered on. Perhaps you are keen and wish to know how to buy the bank foreclosed homes. Well! Simply, you can realize that to be able to get this information, and try to go into finding the middle grounds to pay money for a Bank Foreclosed Home, you can discover that you require a legal representative to assist you to mend the features and contract with the closing. In this case, you may contact some of the online companies that provide the facility of representatives for you. They will guide you at all. They will help you to follow a home, contact them and their recommended agents to find a house for you, a foreclosed home, an FSBO property and several other types of real estate.

The bank of America has a vast range in foreclosed homes’ sell. Most of the banks stage auctions or public sales for foreclosure homes. Participants place their bids for being foreclosed property and the highest bidder wins the bid. This process is common in United States.

Real Estate agents system

A number of online companies have a setup of foreclosure real estate negotiators nationwide who supply with cream of the crop listings on a daily basis to the candidates of being foreclosed property.

Small Business Finance – The Next Big Banking Problem?

For the past year, most banks and lenders have been subject to both disastrous operating results and negative publicity. Actual commercial lending activity reported by banks conflicts with the usual attempt by politicians and bankers to portray banks as normal and healthy. Most bank financial results have been disappointing after working hard to solve massive residential loan problems. It is reasonable to ask if commercial banking has more potential disasters about to emerge based on what has been seen and reported so far.

Based on a number of business financing statistics, commercial lending to small businesses is already on life support. In many cases, without government bailouts many commercial banks would have already failed. As bad as that perspective might sound, this report will provide an even more negative outlook for the future of small business finance programs. Unfortunately for banks and lenders, it does appear that business loans will be the next big problem.

During the past year or so, several banking problems have received significant publicity. The largely avoidable difficulties were primarily tied to increasing home foreclosures which in turn caused various investments tied to home loans to decrease in value. Such investments lost value so rapidly that they became known as toxic assets. When banks stopped making many loans (including small business financing), the federal government provided bailout funding to many banks to enable them to keep operating. While most observers would argue that the bailouts were made with the implicit understanding that bank lending would resume in some normal fashion, the banks seem to be hoarding these taxpayer-provided funds for a rainy day. By almost any objective standard, commercial lending activities have all but abandoned small business finance needs.

Small business financing appears to already look like the next big problem based on commercial finance statistics recently released by many banks. The general decline in commercial real estate values during the past several years is a major factor in this conclusion. Because many large commercial real estate owners could not make their commercial mortgage loan payments or refinance business debt, this has resulted in some significant bankruptcies. The resulting bank losses are clearly having an impact now on commercial lending to small business owners even though these difficulties were primarily happening with large real estate owners and did not usually involve small businesses.

Bank losses on large commercial real estate loans have caused many banks to reduce or stop their small business financing activities, and this has clear similarities to the earlier situation of residential mortgage loan toxic assets causing banks to stop normal lending because of capital shortages. The bank losses from large commercial property investors are producing a ripple effect that has caused small business financing to effectively disappear until further notice. While small business owners did not cause this problem, they are suffering the immediate consequences when banks are unable or unwilling to provide normal levels of commercial financing to them. This bad situation is made even worse when we learn that many banks are hoarding cash and approving fewer commercial loans to allow them to quickly pay bailout funds back to the federal government. The primary logic for this approach is that it will allow banks to resume excessive bonuses and compensation to their executives.

Unfortunately one problem will lead to another, as is common with complex circumstances. The failure to obtain normal business financing will most likely lead to an increasing number of commercial loan defaults by small businesses. Prudent business owners should begin to take action now in a timely manner to avoid such negative consequences. The most serious small business finance problems can be anticipated and avoided with appropriate action.

Even if they do nothing else, business owners should have a straightforward conversation with a small business finance expert to assess how exposed their business might be to the brewing commercial banking problems. If recent events are any indication, the banks themselves will not be very forthcoming about problems with their commercial lending practices. For many small businesses, the most objective business financing expert is not likely to be their current banker. To increase the chances that they receive sufficient small business loans in the face of ongoing lending problems, a healthy amount of skepticism and caution will be helpful for business owners.

Stop Bank Foreclosure Fast! How to Take the Bloodsucking Lender’s Teeth Out of Your Wallet

In order to stop bank foreclosure fast, you’ll first need to learn how this process works. Lately, many families around your neighborhood may be discussing ways to save their homes and keep their families all under one roof. Because of how the economy is affecting most people many have already lost their jobs or been laid off temporarily in order to keep businesses from going bankrupt. Unfortunately, these types of business decisions don’t help us individually.

Many families are finding themselves in situations where having their homes foreclosed upon seems to be the only solution to their problems. Because many individuals are behind in their mortgage payments and are unsure of how to stop the process many have turned to on-line professionals to help them understand exactly how this process works. If you’re interested in learning to stop bank foreclosure fast by utilizing the loan modification process then please continue reading this article.

To prevent or stop foreclosure, there are legal ways to stop the creditors from taking your home. The quickest and safest method I have found is the use of a loan modification service. This method creates various adjustments to your original loan and could be the answer to your problem. With the help of a professional service you can have the stress of dealing with your creditors handled by experts with the know-how to get things done.

A loan modification specialist will communicate with your lenders to reconstruct your original mortgage and create a new mortgage payment that you can now easily afford.

These online services can have your mortgage reworked so late payments may be worked into the modified loan, interest rates can be adjusted and even the time you have to repay the loan may be extended to make your life easier. The best part of using professionals is you won’t have to deal with the annoying so called bank experts alone. They’ll do all the talking for you and come up with an offer you and your lender will be happy with.

So, if you were planning on walking away from the home your children were born in; then I can assure you that once you learn to stop bank foreclosure fast you’ll change your mind. There is no need to panic any longer – working with the right group of specialists when your family is facing financial hardship can be dealt with without losing your home. Utilizing a loan modification program will help keep your money in your wallet and your family safe and warm in the home they’ve become attached to.

Expert Real Estate Agents – How They Can Help During the Negotiation Process

Due to the current scenario in the real estate market, the smart home buyers are searching for affordable deals which are available on short-sale properties. If a person needs to properly capitalize on the current situation, then the experience and guidance of expert real estate agents would undoubtedly be very handy. These agents have a significant amount of experience dealing with banks regarding short-sale purchases. By “short sale” it is meant that a property is sold at a price which is below the amount what the property-owner actually owes to the lender. Since the handling of this kind of sales is done by the office of real estate, a short-sale property can be located in the MLS (aka Multiple Listing Services).

In this mode of transaction the lender remains in control, while the determination of sales price is performed by the bank. The bank receives offers from the potential buyers and either accepts or rejects them. From the point of view of a buyer, the process of negotiation with a bank is tedious and lengthy. If you are a buyer you need to possess sufficient patience and not get frustrated in the interim period. If you are lucky enough, you might find that your offer has been accepted straightaway. Otherwise, it might take weeks, or even months before your offer gets accepted. Only then is your entire process of purchase complete. It can be understood quite clearly that lenders hold a distinct advantage in this process and often banks wait for offers from multiple sources before finally accepting one. If you are a buyer then expert real estate agents can be your ally during this entire process of negotiation.

These expert real estate agents possess in-depth understanding of the paperwork involved in the negotiation process with the bank. They would assist you to get your order to smoothly move through the course of this process. These agents further support you by providing important information like whether there are other offers which are also competing against your one. Some influential agents also have close relationships with personnel present in the banks. Many properties are not located in ideal locations nor are those in their best conditions. In such scenarios, lenders might be a bit lax with their terms of lending so that they can get offers for such properties. But in majority of the cases the conventional set of guidelines that is existent is adhered to regarding financing a purchase.

Competent and expert real estate agents are well aware of the fact that legal questions are bound to arise anytime during the process of short-sale property transaction. These agents hence would advise you to seek help regarding tax policies from authorized public accountants and regarding legal questions from attorneys. In order to ascertain whether you are interacting with expert real estate agents you need to get certain aspects clarified. These would include the experience of the concerned agent, the prior cases handled, etc. Only if the agent seems to convincingly answer all your queries should you go ahead with choosing that concerned person.

Banks Increase Short Sale Offerings to $35,000

Homeowners of America are opting for short sale plans to sell their homes fast, avoid eviction, and get a bank payout. Short sales have become the easiest way for homeowners who are facing difficulty in paying their mortgages on time to sell their house fast. It gives them the much needed opportunity to sell their house for more than the remaining mortgage amount and settle their mortgage debt quickly. Homeowners can avoid foreclosures by opting for this, which also allows them to escape eviction.

In the years 2003-2006, property buyers could easily acquire mortgage loans by getting approval on the basis of their application. Buyers were only expected to state their income unlike today when a home buyer is expected to submit proof of income to get the loan sanctioned. Therefore, at a time when acquiring a mortgage loan is so difficult, it is advisable that home owners consider the short sale option if a loan modification to keep the home doesn’t quite work for them.This looks a lot better on your credit report than a deed in lieu of foreclosure or bankruptcy.

Homeowners can now rely on a Bank of America home short sale plan and sell their house for the right price. Bank of America is providing as much as $30,000 as part of their plan to homeowners who are struggling to pay their mortgage payments. This will give home owners an opportunity to sell their house in case they intend to avoid foreclosure. It is not necessary for homeowners to be a short sale expert in order to make the most of the plan as Bank of America’s plan will provide homeowners with relocation amount ranging between $2,500 and $30,000. This amount will be available for only those home owners who sell their house in a short sale. The Bank of America first tested this plan in Florida and found that it yields impressive results and more and more homeowners who were struggling to make on time mortgage payments opted for the plan. The bank paid as much as $20,000 to mortgage borrowers who disposed off their houses via these plans.

On the other hand, even the Chase short sale department rolled out an initiative in the year 2010. This initiative was similar to Bank of America’s short sale plan and pays around $35,000 to short sellers. Wells Fargo borrowers seem to be getting similar sums for choosing these transactions.

Bank of America has already approved short sales of around 200,000 and completed them in the last two years as well. These sales have also been more affordable for banks as compared to foreclosures. By simply escaping foreclosures, the lenders acquire properties back from borrowers who are struggling to make mortgage payments more quickly. This further allows them to avoid maintenance related expenses, property tax payments as well as legal fees even as foreclosure process is on. As per Realty Trac, during the last 3 months of the year 2011, foreclosures were sold for an average amount of around $150,000, whereas short sales were sold for an amount averaging around $185,000.

In order to qualify for the short sale plan, borrowers will have to acquire pre-approval on their home sales price. In addition to this, the transaction must begin by the last day of 2012 and should be closed by 26th September 2013. Therefore, homeowners should only deal with those buyers who are 100% interested in purchasing your house.

As a result, approximately 42% of all the San Diego homes for sale in the resale segment are currently San Diego short sales and foreclosures. Thinking about buying or selling a home or condo? Please make sure you give us a call. Brian Stephens, Real Estate expert 858-240-2102.

Risk Analysis for Islamic Banks

For a long time now, the idea of operating Islamic banking has generated a lot of debate or argument, especially in Nigeria which has different religions. I was therefore excited when I was handed this book by a former boss of mine on his return from a World Bank conference in the United States of America recently. At least, reviewing it will shed more light on the supposed grey areas of Islamic banking.

This text entitled “Risk Analysis for Islamic Banks”, published by the World Bank, is co-authored by Hennie van Greuning and Zamir Iqbal. Iqbal is a principal financial officer with the Quantitative Strategies, Risk and Analytics (QRA) Department of the World Bank Treasury. He earned his Ph.D. in International Finance from the George Washington University, where he also serves as the adjunct faculty of international finance. Iqbal has written extensively in the area of Islamic finance in leading academic journals.

As for Greuning, he is a senior advisor in the World Bank Treasury and has worked as a sector manager for financial sector operations in the Bank. He has had a career as a partner in a major international accounting firm and as chief financial officer in a central bank. Greuning holds doctoral degrees in both Accounting and Economics.

Greuning and Iqbal say over the years, the Islamic Financial Services Board and related organisations have invited them to workshops and conferences, allowing them to learn from the many scholars presenting at those gatherings.

Structre-wise, this text is segmented into four parts of 15 chapters. Part one is generically tagged “principles and key stakeholders”, and covers the first four chapters. Chapter one is entitled “principles and development of Islamic finance”. Here, these authors educate that Islamic finance is a rapidly-growing part of the financial sector in the world. They add that indeed, it is not restricted to Islamic countries and is spreading wherever there is a sizable Muslim community. They disclose that more recently, it has caught the attention of conventional financial markets as well.

Greuning and Iqbal reveal that according to estimates, more than 250 financial institutions in over 45 countries practise some form of Islamic finance, and the industry has been growing at a rate of more than 15 per cent annually for the past five years. The market’s current annual turnover is estimated to be $350 billion, compared with a mere $5 billion in 1985, add these authors.

Greuning and Iqbal stress that whereas the emergence of Islamic banks in global markets is a significant development, it is dwarfed by enormous changes taking place in the conventional banking industry. These authors educate that rapid innovations in financial markets and internationalisation of financial flows have changed the face of conventional banking almost beyond recognition.

In Greuning and Iqbal’s words, “Rapid developments in conventional banking have also influenced the reshaping of Islamic banks and financial institutions. There is a growing realisation among Islamic financial institutions that sustainable growth requires the development of a comprehensive risk management framework geared to their particular situation and requirements.” These authors add that at the same time, policy makers and regulators are taking serious steps to design an efficient corporate governance structure as well as a sound regulatory and supervisory framework to support development of a financial system conducive to Islamic principles.

Chapter two is based on the subject matter of the theory and practice of Islamic financial intermediation. Here, Greuning and Iqbal say financial systems are crucial for the efficient allocation of resources in a modern economy. They add that the landscape of financial systems is determined by the nature of financial intermediation, that is, how the function of intermediation is performed and who intermediates between suppliers and users of the funds.

According to these financial experts, financial intermediation in Islamic history has an established historical record and has made significant contributions to economic development over time. They expatiate that Shariah provides some intermediation contracts that facilitate an efficient and transparent execution and financing of economic activities. These contracts are comprehensive enough to provide a wide range of typical intermediation services such as asset transformation, a payment system, custodial services and risk management, explain Greuning and Iqbal.

They submit that for Islamic financial institutions, the nature of financial intermediation is different from that of conventional financial institutions. In the words of these authors, “A typical Islamic bank performs the functions of financial intermediation by screening profitable projects and monitoring the performance of projects on behalf of the investors who deposit their funds with the bank.”

In chapters three and four, they discuss the concepts of partnership in corporate governance and key stakeholders.

Part two is eclectically christened “risk management”, and covers six chapters, that is, chapters five to 10. Chapter five is thematically tagged “framework for risk analysis”. Greuning and Iqbal here say the goal of financial management is to maximise the value of a bank, as defined by its profitability and risk level. They add that financial management comprises risk management; a treasury function; financial planning and budgeting; accounting and information systems; and internal controls.

In chapters six to ten, Greuning and Iqbal beam their analytical searchlight on concepts such as balance sheet structure; income statement structure; credit risk management; ALM, liquidity and market risks; and operational and Islamic banking risks.

Part three has the summary subject matter of “governance and regulation”, and covers four chapters, that is, chapters 11 to 14. Chapter 11 is entitled “governance issues in Islamic banks”. Here, these financial experts assert that the corporate governance arrangements of Islamic banks are modelled along the lines of a conventional shareholder corporation.

They add that however, Islamic finance raises unique challenges for corporate governance. According to these authors, the first revolves around the need to reassure stakeholders that the Islamic bank’s financial activities comply fully with the precepts of Islamic jurisprudence. Greuning and Iqbal add that the second revolves around the stakeholders’ need to be comforted in their belief that Islamic banks will promote their financial interests, proving to be efficient, stable, and trustworthy providers of financial services.

In chapters 12 to 14, they analytically X-ray concepts such as transparency and data quality; capital adequacy and Basel II; and relationship between risk analysis and bank supervision.

Part four, the last part is conceptually woven together as “future challenges”, and covers one chapter, that is, chapter fifteen also entitled “future challenges”.

As regards style, this text is an embodiment of success. For instance, to enhance readers’ understanding, Greuning and Iqbal include “Key Messages” section in every chapter where the main points are highlighted. These authors generously use graphics to achieve effective visual communication reinforcement. The language of the text is highly literate and financially technical because of the subject matter, yet it is contextually understandable. What’s more, the text is very deep in contents.

However, some errors are noticed in it. One is the error of structural redundancy: “He holds doctorate degrees….” (page xxi) instead of “He holds doctoral degrees….” or “He holds doctorates….” “Doctorate” is a noun and means “A university degree of the highest level”; while “Doctoral” is the adjective and can be used with “Degree”. “Longman Dictionary of Contemporary English” 2005 edition, page 460 illustration says, “She received her doctorate in history in 1998.”

Another error in the book is “…some new presentations and a perspective that offers…” (page xv) instead of putting a comma immediately before “And”, a coordinating junction of adding, to terminate the nominal plurality effect of the word “Presentations”, so that the third person singular (pro)noun verb “Offers”, can operate exclusively with “A perspective” thus: “…some new presentations, and a perspective that offers….”

Generally, the text is an eye-opener. It is highly recommended to regulators and operators in the financial services industry, especially those in the banking sub-sector. It is a reservoir of rare banking knowledge.

274,000 New Bank Owned REOs For You to Buy Each Month

With the recession looming, homeowners are in a financial bind. It is in equal parts bad and good news. Bad for average real estate agent as property purchases are hitting the record low. Good for real estate investors as property foreclosure are hitting the record high. Foreclosures end up as Bank Owned REO Properties, and banks, having no interest in bothering with upkeep, sell them in bulk for pennies. Pennies that turn to dollars when bulk bought properties are resold. Real estate investors’ dream.

Hard facts back up the promise.

With the 2010 unemployment rate hitting 10.5%, the number of homeowners defaulting on their mortgages is surging. Foreclosures are reaching as many as 7 million mortgages, with additional 5 million being at risk of default where borrowers owe more than the property is worth. The 2010 US Foreclosure Market reports 15% percent increase from 2009, with total increase of 38 percent from 2008, meaning that roughly one in every 409 US households has filed for foreclosure. This is the highest foreclosure rate since the real estate buckling began in 2005.

The Bank Owned REO activity is up 31 percent from January 2009 with default notices up 4 percent from 2009 and scheduled foreclosure auctions up 15 percent. California, Florida, Arizona, Illinois, Michigan and Texas are focal points accounting for 60 percent of national foreclosed properties with Nevada, Georgia, Ohio and New Jersey following close behind.

Faced with deteriorating situation, lenders are moving in on delinquent loans and pushing foreclosures. As banks and loan servicers work their way through loan-modification applicants, Bank Owned REO Properties are increasing and starting to choke strictly scrutinized bank system. According to current trends, bank owned REO properties are expected to peak at 538,000 by fall of 2011. Desperate to clear the books of accumulated REO bank are selling them in bulk at the lowest observed rates. Financing is not an issue. With rapid and convenient Bank REO Property sales process, lenders typically respond to written purchase offers within 48 business hours.

Market is flooded with Bank Owned REO Properties.. Banks do not want them. Real estate investors need them. Prices are at the record low and the time to strike is now. With so many players in the game, the trick to get ahead of the curve is to get access to Bank REO Property lists. Without lists in hand the pickings are slim and the profits partly. While the lists are kept in good confidence, savvy real estate investors know – where there is will there are means. Getting to bank owned REO lists is as easy as singing up with trusted REO expert.

Bank Owned REO Properties are a nice a convenient way to get your money maker going again. While some consulting is advised to get to best Bank Owned REO Property lists, the effort and the time spent is well rewarded. Bank owned REO properties – the best way to make money today.