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Banking & Financial Systems

case stsuy

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27 views3 pages

Banking & Financial Systems

case stsuy

Uploaded by

basketballburp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FBLA Banking and Financial Systems

BANKING AND FINANCIAL SYSTEMS


CASE STUDY

PARTICIPANT INSTRUCTIONS
1. You have 20 minutes to review the case.
2. Presentation time is seven minutes. At six minutes the timekeeper will stand and hold up a
colored card indicating one minute is left and at seven minutes the timekeeper will stand
and hold up a colored card indicating time is up.
3. The presentation is interactive, and the judges will ask questions throughout the
presentation. You are a team of banking and financial specialists for a local branch of a
regional bank in the Midwestern part of the United States.
4. Each team member will be given two note cards. Note cards will be collected following the
presentation.
5. All team members must participate in the presentation as well as answer the questions
posed by the judges. Cover all the points described in the case.

PERFORMANCE INDICATORS
 Use financial terminology relevant to the banking industry.
 Describe types of business activities associated with the banking/financial systems industry.
 Explain government regulations for the banking/financial services industry.
 Explain how financial analysis is used to make decisions in the banking industry.
 Describe products and services offered by the financial industry.
 Describe an appropriate product/service mix for a financial institution.
 Identify resources to increase the customer base for a financial institution.
 Make recommendations to meet the customer’s needs.
FBLA Banking and Financial Systems

CASE STUDY SITUATION

Background Information

You are a team of banking and financial specialists for a local branch of a regional bank in the
Midwestern part of the United States. The bank offers all aspects of financial tools including
savings accounts, certificates of deposits, retirement plans, life insurance, and other financial
services.

Scenario

Two of your long-time bank customers and investors have come to see you today to discuss
how they can acquire enough cash within the next two weeks in order to assist their child's
family from default on their home mortgage. The default is due to a recent, long-term medical
disability. They need $20,000 to cover the mortgage payments that are past due and would like
to pay off the remaining $80,000 mortgage. There will be medical bills of more than $50,000 to
pay over the next year as well. Your team needs to come up with the best options to meet the
needs of your customers. The customers have stellar credit, a large estate, a farm, and live debt
free. Your customers live within their means and can pay back the debts in a relatively short
time period.

Other Useful Information

 Both customers each have $1,000,000 whole life insurance policies with a 5% loan rate.
The current cash value of each policy is $89,000.
 The bank can provide a second mortgage on their home up to $250,000 at 3.75% for 10
or 20 years.
 Both customers have a 401k account with about $50,000 in each. The standard
government deduction for taxes would be applied for early deductions.
 The customers combined have $130,000 in cash on hand, $28,000 in certificate of
deposits that mature at the end of the month, and a $50,000 home equity line of credit.
 Their child’s family consists of the husband and wife and four children (customer’s
grandchildren).

Things to Consider
You must address the following in your presentation:

 Whole life insurance versus term life insurance.

 Mutual funds versus stocks.

 Financial tax implications.


FBLA Banking and Financial Systems

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