Banking Interview Questions and Answers
Banking is an industry of money. Banking includes handling cash, financial transactions, credit and debits of the accounts, etc. In simple words, we can say that Banking is all about taking care of the money which is owned by individuals and entities. Our vast collection of Banking Interview Questions are the best resources for cracking your interviews.
Importance of Banking
- Banks provides several saving schemes which in return attract the people to save money.
- Provides secure money transactions all over the globe
- Provides loan to the agricultural sector at a very low-interest-rate that indirectly affects us.
- Generate employment for all the sectors of society
Most Frequently Asked Banking Interview Questions
The treasury stock method is a process in which the companies to calculate how many additional shares can be generated from the outstanding in-the-money warrants and the options. These new shares that have been added can then be used in calculating the company’s diluted earnings per share (EPS).
Treasury Stock Method Formula:
Additional outstanding shares = Shares from the exercise – repurchased shares
Additional outstanding shares = n – (n x K / P)
Additional outstanding shares = n (1 – K/P)
In the formula:-
N = shares from the options or the exercised warrants
P = Average share price for the period
K = Average exercise share price
Solve some questions on this. This one of the vital banking interview questions.
Types of banking:-
- Retail Banking
- Business Banking
- Corporate Banking
- Private Banking
- Investment Banking
Retail Banking
Retail Banking is also called as Consumer Banking or Personal banking. Retail Banking service is provided by the bank for the general public and the small businesses. Retail banking includes personal loans, debit and credit cards, saving accounts, current accounts.
Business Banking
Business banking or Commercial Banking is the service which is provided by the bank for the middle-sized businesses. Business banking includes business loans, investment products, financial products which functions as a business for getting a profit.
Corporate Banking
Corporate Banking is also a business banking service which is provided by the bank for the large size business like Finance Institutions and corporates
Private Banking
Private Banking is the service provided by the bank to the HNWI (High Net-Worth Individuals). They are those individuals who hold financial assets with a value much more significant than 1 million US dollars. Private Banking services include wealth management strategies.
Investment Banking
Investment Banking is related to investments in the financial market. Investment Banking does the business transactions or creates capital on behalf of the corporations, individuals and governments.
The banking interview questions we are mentioning below will help you to gain enough of the knowledge of becoming an effective team leader.