Banking Management in terms of Economic concepts Research Paper

Banking Management in terms of Economic concepts - Research Paper Example The important products are securities (bond) and mortgage services. About the bond, ADCB transacts the bond to get revenue. The bank buys and sells the bond in both primary markets (debt securities are issued and sold to borrowers to lenders) and in a secondary market (ADCB firm buys and sells previously issued debt securities-bond). The ADBC launched the 600 million five-year bond on September priced at 87.5 basis point. Over 1.5 billion investors placed their order just in one day after its launch as compared to initial basis points of 95 bps. On the hand, the ADBC offers mortgage services which have attractive interest rates. Their mortgage packages are attractive as local experts assist people to avoid common pitfalls. Their experts also offer professional consultants to guide people through the whole process. In addition, ADCB offers options between Islamic and Conventional Home Finance. Quite interestingly is the repayment period, (up to 25 years) which is rank as the best in U AE. The people pay less based on their ability. The mortgage amount is up to 80 percent of the property value. The bank also offers options between competitive interest rates and relaxing re-payment. The monthly installments are as low as AED 5,275 with 0% early settlement fees. EMI is based on 3.99% (per AED Million for 25 years tenure). Emi is fixed for the first year only followed by campaign rates. One of the opportunity cost ADCB faces is either to sale locally or expand its branches overseas.