Contents

  1. Banking and Financial Risk
  2. Financial statement
  3. Proxy

3.1 Rights of proxy

3.2 Proxy Server

3.3 Proxy empowered payments

      4. Proxy for capturing banking risks

4.1 Proxy Banking

4.2 Purpose

4.3 Safe Proxy

4.4 Benefits of Proxy

1. Banking and Financial Risk

Risk can be referred to as the chances of having an unforeseen or unhelpful outcome. Any action or movement which shows the way to loss of any type can be expressed as a risk. Therefore Banking and Financial Risks are one of the main anxieties of every industry and business from corner to corner fields and topographies. So we must take careful and practical risk management which can help banks to improve profits and keep going with a smaller quantity of losses on loans and investments.

2. Financial statement

Financial statements are said to be the economic reports with proper official records of the monetary accomplishments and situation of a business, person, or other entity.  In the financial statement, significant financial information is untaken in an organized manner and in a procedure which is understandable easily. This must be understandable, relevant, reliable, and comparable. Financial statements are anticipated by the person who has a reasonable knowledge of business and economic activities and accounting and interested to know about that information persistently. The information such as performance and changes in the financial position of an enterprise is widely used for users in this commercial result. In financial statement assets, liabilities, equity, income, and expenses reports are directly related to an organization’s financial position.

3.Proxy

A proxy is a written authorization in which one person can represent another to vote on his or her behalf. In simple, a proxy is an agent legally approved to act on behalf of another party. Thus, a proxy is the authority to act for another.  Without the bank account details, a proxy identifier allows bank accounts to be identified.

3.1 Rights of proxy

The proxy has been appropriately prearranged by more than one member eligible to vote on the resolution

Proxy has been tutored by one or more members to vote for the resolution and by one or more other of those members to vote against it.

3.2 Proxy Server

Therefore it is said as a midway server straightening out end users from the websites they browse.

3.3 Proxy empowered payments

Using the power of proxy services users can make digital payments more spontaneously and thus allow people and organizations to send and receive payments using bank details, such as a mobile number or citizen ID.

4. Proxy for capturing banking risks

The global financial crisis has shown that it is important to understand the emergence and measurement of risks in the banking sector. However, there is no compromise in the collective works of risk proxy which done its best at the level of the individual bank.

4.1 Proxy Banking

The Internet Kiosk and the ATM made rural India possible.  This kiosk works on wireless with the help of fiber optic cables.

4.2 Purpose

One of the popular modeling solutions is the use of risk proxies in internal models. However, there is some risk that a proxy may not establish a suitable illustration of the underlying asset in terms of capturing tail risk. The available statistical tools for measuring the adequacy of capturing tail risk by proxies are used in the internal risk models of banks. This results in the most appropriate solutions for validating risk proxies.

4.3 Safe Proxy

A proxy server is an intermediary between users and the main server that procures data from the main without actually disclosing the user address. Commonly, there may be hundreds of such proxy servers but one must be careful with the facilities they provide. These proxies usually express in code your data for maintaining the confidentiality of the user. Thus the proxy is safe for HTTPS traffic except if it decodes or re-encodes it on the fly.

4.4 Benefits of Proxy

  • Helped 58% of rural households to create bank accounts.
  • 21% of rural households started accessing the credit from a formal source.
  • Marginal farmed of 70% having a deposit account by Proxy.
  • Consumers bribe officials to get loans approved which varies between 10 and 20 percent of the loan amount.
  • Challenges in driving the adoption of digital payments are looked by Proxy
  • Contend with the risk of human error while entering a recipient’s bank account details
  • A commonly used measure in applied work is the Z-score, which might suffer from calculation issues given poor data quality.
  • Nonperforming assets are a well-matched supplement to the Z-score of bank risk.

Hope this article provides understanding on Financial Statements and overcoming the barriers by using the proxy for capturing banking risks for adoption

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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