PORTAFOLIO BANCARIO

MEMBERS:
María Alejandra Larios González

Yisela Palencia Berrío

Yaisirys Toro Ruiz

Jose Miguel Vital Arrieta

 PORTFOLIO DEFINITION

In finance, a portfolio or portfolio is a combination of investments made by an institution or an

individual.

Creating a portfolio is part of a strategy to diversify investment and limit risk. By owning

multiple assets, certain types of risks (particularly specific risk) can be reduced. Portfolio assets

may include bank accounts, stocks, bonds, options, warrants, gold certificates, commodities,

futures contracts, production facilities, or any other item that is expected to retain its value.

In building an investment portfolio a financial institution will generally carry out its own

investment analysis, while an individual may use the services of a financial advisor or a financial

institution that offers portfolio management services.

RISK MANAGEMENT

Regarding the management of investments, the following risks are considered, which we seek to

minimize:

 Liquidity risks

It is minimized through the distribution of assets in four tranches:

- Immediate availability . Very short-term investments, even repayable in one day, to meet

current obligations and unforeseen events.

- Liquidity. Investments with terms of up to one year, which include bank deposits with

staggered maturities and highly liquid fixed income instruments and instruments in the

international market.
 - Intermediation section . Made up of investments that replicate public sector deposits in

the bank.

- Investment . Investments with terms greater than one year (mainly bonds), which imply

greater volatility in their prices, but at the same time greater profitability.

 Credit risk

It refers to the possibility that due to the insolvency of a counterparty, it could not comply on

time with an obligation contracted with the bank.

 Currency risk

It comes from fluctuations in the exchange rates of the currencies in which the investments are

made, which could lead to a loss in terms of the base currency for accounting for international

reserves.

 Market or interest rate risk

It is related to the unexpected movement of the market rates of return on the fixed income assets

that make up the portfolio, which may affect the market value of the investments before their

maturity. The measurement of this impact is reflected in the duration of the portfolio. The bank

faces this risk considering the term structure of the liabilities, so that the duration of the total

portfolio is very low, so the impact of variations in market interest rates is minimal on the market

value of the portfolio.

TYPICAL BANKING ACTIVITIES

Capture, as its name indicates, means to capture or collect money from people. This money,

depending on the type of account a person has (savings account, checking account, fixed-term
certificates of deposit, etc.), earns interest (capture interest); That is, since the bank is interested

in people or companies putting their money in it, it pays them an amount for the fact that they put

the money in the bank.

Colocation is the opposite of captation. Placement allows money to be put into circulation in the

economy; That is, banks take the money or resources they obtain through deposits and, with

these, grant loans to the people, companies or organizations that request them. For giving these

loans the bank charges, depending on the type of loan, an amount of money called interest

(placement interest).

Deposit: checking account, savings account and CDT.

Placement: Rediscount lines, credit lines with own resources.

1. CURRENT ACCOUNT

It is a banking contract where the holder makes deposits of funds and the entity, which will keep

it in its custody, has the obligation to deliver in cash and instantly the amounts of funds

requested. With a checking account you can access the deposits made immediately through

checkbooks, ATMs or the teller or bank window.

It is directed to:

 Individual market

Employees

Independent

 All legal entities

It's divided in:

National current account: Designated for national coverage, with the purpose of making

deposits, remittances and payments in all of the bank's systematized offices.

It is directed to:

 Individual market

 Business, business, corporate and official market

Business checking account: It is very useful for the client in money collection operations for

different concepts.

It is directed to:

 Intermediate, business, corporate, official and financial market

Requirements:

 ID card or document

 Recent passport or passport size photograph (depending on the bank).

 Fingerprint of the right thumb on the personal file maintained by the bank.

 Updated bank reports of the person who intends to open it.

 Record of the signature that will be used to write checks

 Labor references of activity and solvency (income, assets, debts)

 Registration of an address in the country, also communicating any change to it.

 Subscription with the interested party of a document containing the general conditions

related to the current account that is opened

Characteristics:
The signing of the contract is carried out on a form pre-drafted by the bank and standardized that

establishes the general conditions of the current account.

Banks are authorized to charge current account fees.

The current account can be closed at any time, by unilateral decision of the client or the bank.

Bank and customer benefits

2. SAVINGS ACCOUNT
The savings account is an essential part of your short- and long-term financial planning. The

savings account is an easy way to start building up some financial reserves.

It is directed to:

 Individual market

 Business market

Customer Advantages

 Cost effectiveness
  Unseizable

 Immediate liquidity

 Possibility of credits

 Monthly statement

 electron card

Benefits for the bank

 Income received from commissions on the use of ATMs, handling fees and the value of

the book.

 Generates greater availability of resources once the reserve requirement has been

deducted

Requirements

 Copy of identification document

 Copy of utility bill

 If you are an employee, present the Salary Certificate, if you work on your own, present a

copy of account statements (Savings or checking account) for the last three months or

other financial information.

 Complete the Financial Services Request form at the branch.

Characteristics

It is perfect for simplifying the management of your family finances in an agile and safe way,

obtaining profits on your average monthly balances and participating in prizes and promotions.

3. CDT
They are nominative securities that are issued in order to obtain resources intended to finance

capital needs.

It is aimed at:

 Individual market

 Intermediate, business, corporate, financial and official market

Customer Advantages

 Cost effectiveness

 Fixed term interest

 Negotiable on the stock exchange and secondary market

 Interest rate

 Benefits for the bank

 They are the most stable resources that the entity has to fulfill its intermediate function.

 Generates a higher available amount due to having a lower reserve requirement

 Mechanism to solve treasury deficit

Requirements

 You must fill out a form, which requests information such as:

 Full name

 Identity document number, place and date of issue.

 Place and date of birth

 Address and telephone number of residence.

  Occupation, trade or profession Name, address, fax and telephone number of the

company or business where you work.

 Source of funds with which the CDT opens and monthly expenses

 References: one family member and one personal reference identifying name, telephone

number and address.

Characteristics

The Fixed Rate CDT has the following characteristics that make it an excellent option to invest

your money:

 Amount

 Term

 Interest rate

 Grace period

 Reinvestment

 Extension or renewal

 Title type

 Negotiability

 Fractionability

 Endorsement

 Investment support

 Investment redemption

 Cancellation

4. CDAT
It is a Term Savings Deposit Certificate, which is issued as proof of a deposit that the Bank

undertakes to return at the expiration of a determined period of time along with the previously

agreed interest.

Characteristics

 It varies taking into account the deadlines and the amount.

 It serves as a guarantee for the credits.

 They are not negotiable.

 Taxes.

 Deadline.

Requirements

 Photocopy of ID.

 CIFIN commercial information.

 Registration of the signature and fingerprint of the applicant.

 Declaration of origin of funds.

5. TRUST ADMINISTRATION

Through the fiduciary administration of securities, in the name and on behalf of the issuer,

we carry out the issuance, custody and registration of final holders of the securities, as well

as the debt service, whether due to maturity of capital or interest. , all under strict safety and

efficiency parameters.

Services
 Issuance of securities : placement of securities through different market mechanisms

(agreed, mandatory, voluntary operations and auctions, among others).

 Custody: securities are kept in the form of electronic records (dematerialized), subject

to the provisions of Law 31 of 1992 and Decree 2520 of 1993.

 Debt service: automatic payment upon maturity of the obligations owed by the issuer

for capital or returns, by crediting into account, after the issuers have allocated

resources to the central bank. With authorization from the issuer and under pre-

established rules, holders are offered early redemption of securities.

 Register : keeping the book of final beneficiaries through the book entry mechanism.

Characteristics

 The securities that can be administered are those that hold the quality of domestic

sovereign debt securities; prior authorization of the Board of Directors of the Banco de

la República.

 The settlement of placement and maturity payment operations is carried out under the

delivery versus payment modality (elimination of credit risk).

 There is immediate availability of the securities or resources once the securities are

issued or paid.

 Characteristics or financial conditions of the securities adjustable to the needs of the

issuer (denomination, term, fixed or variable coupon, payment frequency, etc.).

 The fiduciary administration services are provided supported by the infrastructure of

the Central Securities Depository of the Banco de la República (central bank of

Colombia), which allows, in addition to carrying out the main operations, transfers

between final holders through account entry.

  Management of resources (money) in the central bank's deposit account system.

 Compliance with current tax regulations.

 Operational and technological risk management mechanisms

 Certified operating processes according to the requirements of the ISO 9001 standard.

Facilities

 Mass issuance of securities.

 Mechanisms that allow the automatic reinvestment of values.

 Automatic payments upon maturity of principal or interest.

 Execution of debt management operations.

Information

 Detailed and timely provision of the balances, movement and projection of maturities

of the securities to the issuers.

 Disclosure and availability of regulations with the characteristics and operating

procedures of each managed security.

Insurance policy and coverage

 Operations covered by a global banking policy

6. GOLD MASTER CREDIT CARDS

 Its purpose is to serve the client to acquire goods and services.

 Provides the client with an immediate and rotating credit quota that can be used in

Colombia and abroad

It is directed to:

 Financial conditions

Customer Advantages

 Immediate credit

 Cash advances

 Cash purchases

 Security

 Masterphone

 Traveler services

7. BEARER CHECK

For a check to be “bearer” you must not cross out the printed words “bearer” or “order.” This

type of check can be cashed by anyone who presents it at the bank.

8. CHECK TO ORDER

You must cross out the words “to the bearer.” In this way, the check can only be cashed by the

person whose name appears written after the words “pay to the order of.” It allows it to be

endorsed, that is, collected by another person by writing their signature on the back of the check.

When endorsed, anyone can collect it as if it were bearer.

9. NOMINAL CHECK

If you make a line above the printed words “the order of” and “or to the bearer” the check can be

cashed only by the person to whom you wrote the check and in no case can it be endorsed.

10. CREDIT LINES

The Line of Credit means money always available in the bank, for a period agreed in advance.

Importance of lines of credit

It is important since the bank agrees to lend to the company up to a maximum amount, and

within a certain period, at the time you request it.

Advantages

 It is “available” cash that the company has

Disadvantages

 A percentage of interest must be paid each time the line of credit is used.

 This type of financing is reserved for the bank's most solvent clients, and however in

some cases the bank may request collateral before extending the line of credit.

 The company is required to maintain the “Clean” line of credit by paying all

11. CREDIT CARD

It is a plastic card with a magnetic stripe, sometimes a microchip, and an embossed number that

is used to make purchases and pay for them at a later date. Due to their ability to make payments,

they are also called plastic money or cash money.

Natural person requirements

 Written request.

 Copy of the identity document.

  Documents that, at the discretion of the financial system company, prove sufficient

payment capacity.

 Individualized and determined address.

Legal entity requirements

 Written request.

 Documents that prove registration in Public Registries.

 Documents proving payment capacity

 RUC number.

 Certified copy of the representative's power to request a credit card.

 Written authorization from the requesting legal entity that designates the authorized

users.

 Copy of the DIs of authorized users.

 Individualized and determined address of the applicant.

Credit cards with microchip: An electronic circuit integrated into the card carries out most of

the controls related to the use of the card, offering more security to the user and the issuing bank.

Indeed, the microchip integrates electronic protection devices that prevent its violation or

unauthorized reading of the information it contains.

Tips for using the credit card

 Pay outstanding installments on the due date.

 Be careful with the credit limit.

 Check your payment statements.

 Make automatic payments.

  If you are going to browse showcases, don't take your credit card.

 Do not carry multiple credit cards.

 Protect yourself from identity theft.

Security

 Sign the cards as soon as they arrive.

 Try to carry cards separate from your wallet.

 Keep track of your account numbers

 Never lend your cards to anyone

 Leave your cards and receipts in any wallet.

 Enter your PIN number. Memorize it.

 Cancel your card as soon as you realize

 Keep your receipts in a form of power of attorney at the company you are with, compare

them with your records and control them. to see if there are errors.

 Open and check your monthly records immediately.

Advantages and disadvantages

 Possibility of purchasing

 Items you need may cost more, despite not having interest and liquidity charges on that

financing.

 They may include additional commissions at the time.

 You don't have to carry

 Cash may arise. Economic difficulties

  Create a record of purchases if you lose control. How much you spend each month.

 Consolidate accounts

 You can pay in a single payment.

Bank statement

 Verify that last month's payment has been received and credited correctly to your

account.

 Analyze the purchases made that are listed on the statement and verify them with your

receipts to see if they are correct.

 Review what the interest rate is and how it was calculated.

 Check that the purchase total is correct and any credit you have has been considered

when calculating the balance due.

 Please check to determine when payment is due and be prepared to submit at least 5 days

before the due date so it is received on time.

 See the illustration below to better understand how you should read your credit card

statement.

Ordinary credit: This line of credit is intended to meet the free investment needs determined by

the associate.

Resolution 19/90: It is a line of credit that finances the short and medium-term working capital

needs of clients linked through a current account.

Release: The release agreement consists of the granting of mortgage loans, housing leasing,

vehicle and free investment loans for employees, under special conditions, with the company's
commitment to discount the value of the monthly installments of the credits. the payroll of each

employee and pay it to the entity

Overdraft: Overdrafts in a bank checking account correspond to all those transfers made in the

account without funds available, constituting, therefore, credits that the drawee bank grants to the

Negotiated remittances: Operation through which the value of checks drawn by our own or

other Banks is paid to the Current Account immediately on places other than that of the office

where the client has their Account established.

Letters of credit: Documentary credit (Letter of Credit) is the instrument that formalizes the

agreement under which a bank, acting at the request of an importer and in accordance with its

instructions, undertakes to make payment to an exporter, against the presentation of a series of

required documents within a specified time limit, as long as the terms and conditions provided

for in the credit have been met.

Bank acceptances : Commercial instrument, through which a bank agrees to pay (is obligated),

a bill of exchange upon maturity to a beneficiary, seller of a merchandise, that has been acquired

by a buyer through a financing method.

INTERMEDIATION AND DIVERSIFICATION OF PORTFOLIOS

Financial intermediaries do more than mediate between ultimate lenders (savers) and ultimate

borrowers. They also play a very important role in offering savers an asset that constitutes a

well-diversified portfolio of assets.

The financial intermediary, such as a savings and loan association, can offer this small saver risk

reduction through diversification. This is achieved by amalgamating surplus funds from many
small savers, with which a wide variety of assets can be purchased from numerous ultimate

borrowers.

So, we understand that the banking business consists of capturing savings from the public,

placing its own capital and granting it in short, medium and long-term money loans, obtaining

profits from the interest rate that will be charged for the differential between the deposit and

credit operations.