Bank CEOs and senior executives from among the winners of Global Finance’s Best and Safest Banks awards offer their advice to corporate finance directors on selecting the ideal banking partner.

Top bank executives around the globe say 2005 will remain another tough year for trying to win new corporate customers and to hold on to the ones they already have. The bankers will have to offer new services faster and for less money than ever before because the corporate finance directors remain in the driver’s seat.

Finance directors should look for a single bank that can handle all of their financial needs. In an emerging market, there are so many opportunities and changes occurring that it’s best to keep tight control over your money. The fewer banks you use, the better.

Selecting the right bank to work with is a decision of the utmost importance that deserves more attention than it usually receives," says Manuel Medina-Mora, CEO of Banamex. There are significant differences in the products, as well as prices and customer service offered by various banks, he says. Medina-Mora, who was named chairman and CEO of Citigroup Latin

America and Mexico in March 2004, while remaining CEO of Banamex, says it is wiser to choose a financial group, rather than a bank, in order to gain access to a comprehensive range of financial service

A bank must be able to respond quickly with innovative services that reduce the day-to-day operational hassles of the corporate client,Customers are demanding more value-added products and want the bank to have specialists in their business area who can act as consultants.

A bank should have the capability to educate clients about the necessity of protecting themselves against market risks and especially foreign exchange risk. Clients who transact their business through several accounts at the bank are offered cash-pooling and overnight term deposits.

The bank should have a long-term commitment, not only to its clients, but also to its country,The bank should have a team with dedication, enthusiasm and integrity
source:http://findarticles.com/p/articles/mi_qa3715/is_200501/ai_n9469248/pg_12

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No one wants to declare bankruptcy, but in this era of excessive spending, overwhelming credit card use, and failed small businesses, being bankrupt has become a fact of life for many individuals. How does one determine whether the declaration of bankruptcy is a wise move? It�s probably best to consult an attorney or skilled financial advisor when you decide that your debts have reached the point where you�re unable to handle them.

Many municipalities offer free financial counseling services, sponsored by local non-profit agencies, aimed at helping families or individuals cease credit card spending and offering advice on the best road to take to become financially solvent once again, with bankruptcy as a consideration.

When you�ve determined that this is the best solution for your financial woes, there is much to consider in selecting the type of bankruptcy for which you�ll file.

There are two basic types. 

The most common is also known as liquidation.  If you choose liquidation, a trustee will be appointed to your case.  He will collect any non-exempt property, sell it, and distribute the proceeds to your creditors

Another allow for the rehabilitation of the debtor and let the debtor use future earnings to pay off creditors.  A trustee is also appointed in these cases as well, charged with the duty of supervising existing and future assets.  There are advantages to both types and experts can best advise you on which way to file.

Remember that bankruptcy may be entered into voluntarily, when you deem it appropriate, or may be imposed upon you by your creditors.  Once creditors have filed, they may not attempt to collect debts outside of the proceedings.

Whichever plan you choose, it�s necessary to understand that bankruptcy will affect your credit score and future abilities to purchase high-ticket items with credit, such as homes and cars, or even make it difficult to rent an apartment.  That�s one of the major reasons why it�s necessary to seriously consider whether bankruptcy is appropriate for your situation and if you�ve exhausted all other options.

source:http://www.capweb.net/index/Articles/Finance/Bankruptcy

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Your insurance needs skyrocket once your life becomes intertwined with others’. Whether you’re a traditional family, a single parent or someone who’s adopting, here’s what you need to know.
Coverage you should buy now

Life insurance:-If anyone depends on your income or the services you provide to your family, you almost certainly need life insurance

If you work, your spouse may need your income to help pay the mortgage, buy groceries and save for your children’s education. If you’re a stay-at-home parent, your spouse most likely would need to hire someone to provide child care.

You have two basic types of coverage to choose from: term or "pure" insurance, and cash-value insurance, which combines pure insurance with an investment component.

Cash-value insurance can cost 10 times as much as term insurance, most young families will find they need to buy term in order to get enough coverage.
Disability insurance:-This is even more important when a family depends on your income to survive. You should aim for coverage that replaces at least 60% of your current salary.
If you can’t get or afford coverage, make sure you have a substantial emergency fund — equal to at least three months’ worth of expenses, and preferably six months — to tide you through any short-term disaster.
Health insurance.:-Young families tend to spend a lot of time in the doctor’s office, so health insurance is a must — and a good reason to switch employers if yours doesn’t provide this benefit. Even if you have to pay part of the premiums, health insurance is a lot more costly when you try to buy it on your own. The typical employee covered by health insurance at work pays only 20% of the total cost.
Homeowners insurance.:-If you own a home, you need this coverage, unless you have enough cash on hand to completely rebuild and refurnish your home. (In the unlikely event that you did, however, you’d still be required to buy a policy if you had to obtain a mortgage to buy your home.)he key is to buy enough coverage, but not too much. Don’t use your home’s purchase price or current value as a guide. What matters is what it would cost to rebuild your home. A contractor can give you an idea of the average cost per square foot to rebuild in your area.

Liability coverage:-If your homeowners and auto policies don’t provide enough protection, you may need to buy a personal or "umbrella" liability policy. These kick in when the limits on your auto or homeowners policies have been exhausted. Fortunately, umbrella policies are relatively cheap — about $250 for $1 million of coverage. Talk to your homeowners or auto insurer or an independent agent to get quotes.
Coverage you probably don’t need:-Life insurance for your children. You have many better ways to spend your money, including saving for your own retirement and for the kids’ college funds.

Long-term care insurance. Long-term care is a significant and serious problem, but most financial planners don’t recommend buying coverage until you’re in your 50s — if then.

source:http://moneycentral.msn.com/content/Insurance/AssessYourNeeds/P35993.asp

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If your credit score is below 700, you may not qualify for some of the best interest rates on credit cards, loans or mortgages. This means that just by having a credit score of 695, instead of 725,you may end up paying thousands more in interest on any new credit you are granted, which you can avoid by just taking some simple steps to increase your credit score before applying for a new personal loan, auto loan or mortgage. It is widely believed that a credit score of 720 or higher is ideal.

How to improve a low Credit Score

1) If you have a recent bankruptcy on file, repossession, foreclosure, missed or late payments.. it will take time to bring your credit score back up after such a blow. If you are in this position, in the mean time just be sure to borrow "within your means"  and don’t overextend yourself. Keep paying your bills on time, and you will be back on the road to raising your credit score.

2) If you pay your bills on time, don’t have a recent bankruptcy on your record, and don’t have any missed payments or collections on file, look at your credit card balances. Normally you will want to keep your debt-to-credit limit ratio, on your credit card accounts, below 25%. If you owe more than 25% of your total credit limit on your credit cards, consider paying them down.

3) Even if you pay your credit card balance off each month, it still may be reported to the credit bureaus that you are carrying a balance on that card. It depends on what time of the month your credit card issuer reports to the credit bureaus, they will list whatever your balance is on the day they report it. However, most (if not all) lending institutions are aware of this, so this is generally not something to worry about.

Too many open credit card accounts

Also, too many open credit card accounts can be a bad thing. But, if you already have several open credit card accounts in good standing, don’t cancel them, the added "good" credit history can help your credit score. If you find that you have way too many open credit card accounts and you have decided to cancel some of them, be sure to cancel the most recently opened accounts. Keep the oldest accounts open. Normally the longer your payment history on an account, the better your credit score will be.always try not to open too many credit cardaccounts if that aren’t necessary.

Newly Opened Credit Accounts

Usually your credit score will take a slight hit from newly opened credit accounts such as credit cards, auto loans, or mortgages. How many points your score will decrease depends on how many times you have applied for credit in recent months.

However, this decrease is only temporary, your score should rise again after several more months of making your payments on time. Normally this is not something to worry about, unless you have submitted many applications for new credit in a short period of time. That may indicate to credit issuers that you are beginning to overextend yourself or that you are being denied credit and you keep trying other lenders hoping for a different result.

Short Credit History

If you have a very short credit history  that can also be a reason as to why you have a low credit score. Keep paying your bills on time and follow good overall credit management, and rest assured - with time - your score will rise.

No Credit History

If you have absolutely no credit history, your credit score will most likely be low to start with. You can get started by applying for a credit card in an attempt to establish your credit history, or if you are trying to obtain an auto loan, but haven’t had any luck getting approved because of a short credit history , you can ask someone you trust to help you by co-signing on a loan with you.

These are just 2 of the ways you can start establishing your credit, but probably the 2 most common ways. When you are approved for your first credit account, be sure to pay your bill(s) on time, and you will be on your way to a better credit score.

source:http://lawyerintl.com/modules/AMS/article.php?storyid=1882

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Choosing a stock broker, customer satisfaction surveys and broker rating guides have their limits. What really matters is whether you�ve found the right brokerage for your needs. Who cares if all the millionaires rave about their top-drawer treatment if you can�t get your broker to return calls and your account is being wiped out by excessive commissions?

Likewise, your day-trader buddy may insist he�s getting a great deal, but if you need to speak to an actual person once in awhile, the cheapest trades in the world aren�t going to make you happy.

Before you launch your quest for the best brokerage,just ask yourself the following questions:
How much do I have to invest?
The more you have, the more options you�ll have. Unfortunately, some discount brokers that used to cater to the little guy now soak him with fees.

What kind of investments do I want?
Every brokerage will give you access to the most commonly traded stocks, but you won�t necessarily have access to thinly traded issues or every mutual fund on the

planet. If you want access to most hot IPOs, you may need to use a full-service broker, even if you�re otherwise a do-it-yourselfer.

How often will I trade?
Many brokers link commissions and account fees to trading frequency.

How much help do I need?
Even discount brokers offer advice these days, but the more handholding you need, the more you�re likely to choose a full-service broker.

Now that you have some idea of where you stand and what you need, try to put yourself into one of the following categories to see how you can find the broker that best fits your situation.

Which type of investor are you?
Click the link that best describes your situation.

The (really) small investor
You�re just starting out and have less than $5,000 to invest but would like to put what you have to work in the market.

The buy-and-hold investor
Your life is too busy to hassle with investments all day long — you either stick mostly to mutual funds or have a portfolio of stocks that doesn�t change much day to day.

The active trader
You trade in and out of investments all day long, or at least several times a month. You�re always looking for an edge that allows you to squeeze extra profit from every transaction.

The handheld investor
No, I don’t mean a Palm or a Pocket PC user. You�re someone who wants help through the investing maze.

source:http://moneycentral.msn.com/content/Investing/Startinvesting/P98893.asp

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Indian stocks may extend their three- day, 14 percent slump as some overseas investors judge local shares expensive given the outlook for earnings.

Stocks tumbled 10 percent at one point yesterday, sparking a one-hour halt on both the Mumbai Stock Exchange and the National Stock Exchange. Shares recovered from their lows of the day after the government said banks would help investors meet calls for cash. The Sensitive Index, or Sensex, ended down 4.2 percent to 10,481.77.

“When there are worries about markets around the globe, clearly the markets that have gone up the most are going to get hit the most,” said Arjun Divecha, who manages the $10 billion GMO Emerging Markets Fund in Berkeley, California. “For a year or so we’ve felt the market is overvalued.”

The Sensex rose 95 percent in the 12 months to May 10, when it closed at a record 12,612.38. The benchmark has dropped 17 percent since then. The measure is valued at 17 times estimated earnings, more than the 12.9 times for the Morgan Stanly Capital International Emerging Markets index, according to Bloomberg data.

“It’s still very expensive,” said Peter Hill, who manages the $218 million Highmark International Opportunity Fund in Foster City, California. “The fundamentals are pretty good for India, and it’s at an early stage of getting on this growth wagon. It’s not so much the fundamentals as over speculation in the stock market.”

Reliance Industries Ltd., which owns the world’s third biggest refinery, yesterday dropped 44.95 rupees, or 4.6 percent, to 931.6. Infosys Technologies Ltd., the country’s second-biggest software maker, fell 148.05 rupees, or 5 percent, to 2826.55. The two stocks account for about a fifth of the key index’s weight.

`Next Risk’

Overseas investors sold $302.9 million more of Indian equities than they bought on May 19, according to figures released late yesterday from the Securities & Exchange Board of India, the stock market regulator. That’s the most they have sold in almost a year.

If people who have put their money in mutual funds “start getting nervous, then you could see a second wave of selling pressure,” said David Chatterjee, who helps manage $700 million of investment in India for Pictet Asset Management in London. “That’d be the next risk.”

Finance Minister Palaniappan Chidambaram said yesterday there’s no cash problem in the stock market and banks will give “ample funds” to pay for shares. The Indian government, which controls nine of the country’s 10 biggest lenders, said yesterday that money will be available from banks to cover demand that may arise from so-called margin calls.

Source: http://www.bloomberg.com/apps/news?pid=10000080&sid=aCwd0JykgDgg&refer=asia

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