Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance Management of Financial Institutions - II - Question Paper

5S basically focuses on workplace improvement. Have we not compared MNC banks with our nationalized banks on many occasions and wondered how the MNC banks are more efficient and productive? Normally, we put it down to the factor that MNC banks are rich and have more ‘money’. A deeper thought would indicate that this achievement could be more on the ‘attitude’ and ‘way of thinking’ than ‘money’.

elaborate the 5S?

Proper Arrangement (Seiri in Japanese)

• Sort, Sort-out, Re-sort.

• Identify what you need and discard/throw out what is unnecessary (the junk).

Orderliness (Seiton in Japanese)

• organize things in order.

• Assign a separate location for every distinguishable kind of item. Every 1 can follow a similar trend.

Cleanliness (Seiso in Japanese)

• Clean the workplace, equipments and tools.

• Keep the workplace spotlessly clean at all times.

Clean up (Seiketsu in Japanese)

• Maintain the equipments you have and the tools.

• Keep the workplace clean.

Discipline (Shitsuke in Japanese)

• Scrupulously stick to the rules.

• Make them a habit.

a few people are skeptical as to the success of 5S principles in a service institution like bank. The functions of banking can be broadly classified into front-office and back-office. Front-office people are those who are working at a branch and are in constant touch with the customers.

If we take the analogy of back office and front office of the bank to a factory environment, it is like the “Line” functionaries and “Staff” functionaries. The people in Line in a factory are directly involved in the manufacturing activity whereas people working in a office in purchases department, HR department, etc., though not directly involved in the manufacturing activity, enable the Line people in efficient discharge of the duty. We may hasten to add here that both are interdependent and complementary to every other and for the efficient working of any organization—bank or otherwise— there is the need for both.

Caselet 2

learn the caselet carefully and ans the subsequent questions:



8. describe credit derivatives and discuss the terms: Protection Seller, Protection Buyer and Credit Event.

(7 marks) < ans >

9. Credit linked notes are gaining popularity as a credit derivative. With respect to this discuss the credit linked notes and how it operates.

Earning:   Approval pending.