Information System For Lending Activity In Brd Gsgdocx

=== INFORMATION SYSTEM FOR LENDING ACTIVITY IN BRD – GSG ===

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

FACULTY OF BUSINESS ADMINISTRATION –

ENGLISH DEPARTMENT

INFORMATION SYSTEM FOR LENDING ACTIVITY IN BRD – GSG

ACADEMIC SUPERVISOR

CONF. UNIV. DR. LAURENȚIU FRATILĂ

GRADUATE:

SULIMAN ADEL

BUCHAREST

2015

Introduction

Computer products used by financial and banking system in Romania

Today the number and type of operations is increasing and more complex, without the possibility to conceive an efficient banking activity without a rigorously designed and conducted banking system. What individualizes banks are quality management complexity and efficiency of services provided to customers, especially in the current stage, where the most expensive good on the market has become the information. Questions concerning the collection, storage, processing and consumption of information have gained great importance.

To process a large volume of data, in a timely manner, is required a well thought out information system, well structured, equipped with advanced computing elements and appropriate software. Often, decisions and their execution must be carried out in a very short time, in optimal conditions offered by the market; so it is beneficial that the processing and presentation of information to be made as quickly as possible and the results to be accurate, precise and suggestive. But computing systems and services can provide analysis, simulation and offer solutions to problems of great complexity.

In addition to activities with customers in the bank premises, some financial institutions also offer electronic banking services, under one of the two forms: intranet banking or banking internet.

Intranet banking implies an installed program by the client that enables secure communication between client and bank. Using this system, a large part of the clients` operations done at the bank are now conducted at the customers` place. Accesses to the system have only the customers who purchased corresponding software package from the bank.
In case of Internet Banking, any Internet user is a potential customer of the bank. There is no need of written conclusion of an agreement between the bank and client to share in the bank's trading system, just a electronically contract between client and bank.

Intranet bank banking offers customers a secure way to conduct banking transactions remotely.

In Romania, the Intranet banking products are used with a good market image: SogeCash product of SocieteGenerale, functional only in BRD- GSG network, and products developed by software companies (eBanka provided by SoftNet company and the company Sybank Romsys).

Internet banking proved to be the easiest way to achieve an electronic transfer between a client and a bank. With the information explosion, there is a transfer of information services "over the counter" to "home-banking". Developing Internet global network type communications led operations targeting this type of transfer classical to electronic banking.

Worldwide, this service is offered by reputable financial institutions such as Bank America Corp., Credit Lyonnais, Deutsche Bank, Lloyds TBS, and UBS etc.

Internally, we can observe the appearance of this type of bank in the Romanian financial system. Software is developed by banks as BCR, Raiffeisen Bank, and specialized companies (Logimax, ICL Financial Services).

Internet banking solution used by BCR offers in real-time access to banking services. At the time you access to account, you can see and print account statements, and trading orders may be sent by BCR 24 hours a day, 365 days a year.

Current bank operations can be performed from any computer connected to the Internet and provides software independence between the bank and the client.

Banking services provided to individuals or legal entities:

Information about accounts (balances for accounts: current, deposit, credit, guarantees, etc. and bank statements for transactions made on the last three months);

Transactions in lei (payments to the state budget or various partners);

Foreign currency transactions (purchases / sales of foreign currency and transfer).

CHAPTER IBRD – GROUPE SOCIETE GENERALE, OVERVIEW

1.1 OVERVIEW

BRD – GroupeSociétéGénérale (BRD-GSG) is one of the largest commercial banks in Romania. In terms of assets’ volume, it is ranked on the second position. With a network of 220 agencies, the bank is available for individual customers and corporate clients.

The main shareholder of BRD-GroupeSociétéGénérale is one of the largest European banking groups.

For its large corporate customers, foreign or domestic, as well as institutional investors, BRD – GroupeSociétéGénérale also offers a range of market and complex financing and investment bank services (privatizations, mergers – acquisitions, issues shares, etc.) based on specialized teams and SociétéGénérale network presence in the world (75 countries).

Small and medium enterprises

BRD holds a share of approximately 22% of the SME market in Romania. About 60% of the loan portfolio for legal entities focuses on this segment of customers, the remaining 40% being dedicated to large enterprises. With a harmonious representation across the country, the bank recorded a balanced exposure in this market: 31% industry, 40% services and commerce, construction 9%, 5% transportation, 4% agriculture and 11% other sectors.

BRD to support sustainable development of the Romanian economy and especially the SMEs and through partnerships with the European Investment Bank and the European Investment Fund, which enabled the granting of credit facilities and guarantees to SMEs, amounting to over 30 million. Regarding micro-enterprises, the bank implemented a program
dedicated funding in collaboration with the Romanian-German.

Offer intended for these customers rely on solutions tailored to their specific needs by diversifying and increasing the supply of financing products (loans accepted in advance, multi-currency loans, credit scoring, credit adapted agricultural sector etc.), placements, current operations, factoring, leasing and remote banking services.

To achieve its objectives in this market, the Bank focused on several major axes: optimizing its commercial device by implementing dies dedicated customer segments and international desks in big cities; permanent training customer advisers and trade reporting system performance.

Large Corporate

In the area of structured finance, the bank made structured financing operations with large groups of raw materials (Rompetrol, Mittal Sidex) continued to play an active role in syndication, in particular by participating as co-arranger to finance export credits (Electrocentrale and Orsova Shipyard) and in privatizations, as escrow agent (DistrigazSud).
Share Monet cross selling operations increased significantly in 2011 through agreements with major retailers, such as Carrefour, Bricostore, Praktiker.

BRD – Groupe Société Générale is one of the leading municipalities funding, making stands by financing important projects in cities such as Ploiesti, Pitesti, Baia Mare, Deva, Piatra Neamt, Targoviste, Arad. BRD also funded, often under the Sapard program, local governments over 25 cities, for the execution of sewerage and infrastructure development.

Development strategy of BRD – GroupeSociétéGénérale is integrated into the global strategy of SociétéGénérale, which consists mainly in developing banking networks outside France and especially in Central and Southeastern Europe.
BRD – GroupeSociétéGénérale wishes to be a reference bank of Romania for professionalism, innovation, quality and profitability of its development.

Regarding this, BRD – GroupeSociétéGénérale will pursue a sustained investment policy in order to adapt its commercial device scale, to achieve a large-scale processing and to broaden its range of products and services.

The main directions of development of the bank are:

Bank to individuals;

Enterprises’ Bank;

Investment bank

Retail Banking

BRD-GroupeSociétéGénérale takes advantage of the experience acquired in France by SociétéGénérale in its activities and especially that of the Retail Bank. BRD – GroupeSociétéGénérale is the second bank in Romania on Retail Banking field, with over 1 million customers (individuals and SMEs) and holds a leading position in monetary services, thanks to a development policy essentially founded on innovation.

With a network of 189 agents implanted throughout the territory, BRD –GroupeSociétéGénérale maintains a good quality relationship with its private client’s proximity, professionals and companies (SMEs).

To achieve full effectiveness and to fulfill better the needs of its customers, the organization of Retail Bank BRD – GroupeSociétéGénérale is based on three key functions:

Distribution, Products and Markets: closer marketing and trading. This pole focuses on marketing activity (behavior analysis and expectations, observing the market and competition, creation of new products) and commercial aspect (the definition of trade policy, setting objectives and monitoring their achievement). Among the priority objectives of this team we can find adapting and enriching the offer of products (such as leasing or factoring products internally) and alternative distribution channels development from the perspective of creating multichannel banks.

Operations, Post-Sale Service: always more efficient back-office. Two important missions assigned to these teams: coordinating projects designed by back-office, together with guiding and monitoring daily production. The aim is to reach a homogeneous processing of files with consistent quality in the whole network.

Strategy and Network Development: a coherent perspective. BRD – Groupe Société Générale has put in place an unprecedented investment program to modernize its network. It strengthens and renews its commercial strength by recruiting younger employees. Moreover, reorganization of the network launched two years before aims to multiply the number of agents without back-office through the creation of clusters.

Bank of large customers

BRD – Groupe Société Générale has a structure devoted to large corporate Romanian clients and to the multinational subsidiaries of large companies. This structure provides services as expected and benefits from the main support activities (for example structured financing) andalso from the international network of Société Générale.

Its commercial action is based on a network of more than 206 agencies that offer great geographical coverage of Romania and a comprehensive range of services for current operations (cash management, monetary, processing domestic and international operations, etc.), together with thetreasury and exchange services of BRD – Groupe Société Générale, and the banks’ specialists in trade finance, factoring, without forgetting leasing subsidiaries and Investment Bank.

BRD – Groupe Société Générale is capable of providing full range of traditional banking and investment banking services and bases its developing policy on a long-term partnership with its clients.

Investment bank

This activity of BRD – Groupe Société Générale was regularly associated with major privatizations, either at the level of mergers/acquisitions counseling, initiations of operations or structuring of market operations. This team includes ten professionals with relevant financial experience and recognized skills that are able to offer original solutions for the SMEs, international institutions and the public sector.

BRD operates on a network with over 300 agencies scattered all over the country.

In 2010 the Bank launched an intensive program of opening new branches, which will continue in the years ahead. These units easily integrate into community life, being located in residential areas of individual clients, in universities, in shopping malls, in public institutions.

1.2 Credit operations, main terms of banking investment

By law, a credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.

The common elements that appear in various definitions are:

an existence of availability (which becomes loans) in some companies and the acceptance by them to surrender other economic agents (debtors)

a temporary loss of the lender’s rights (creditor)

the obligation of the debtor to repay a loan on a term called maturity, mandatory accompanied by their interest rate
It must be said that only the disposal and collection of money is a credit operation.

In one of the two moments of cession/granting and repayment/reimbursement, instead of a sum of money it can be also a quantity of goods, execution of performed works or the provision of services:

sale on credit (commercial credit) of these assets gathering the money at the time of the loan granting or repayment;

credit as an advance, when the money is produced with goods or services, at the time of refund or reimbursement of the loan.

The purpose of the loan is always a good to be returned in its form or substance. The credit is a currency loan, but the currency is a commodity with generally equivalent role. It actually appears as a currency conditioned exchange divided in time.

Characteristic features of credit report can be grouped as follows:

Threads of credit report

The creditor and the debtor, despite the diversity in terms of membership in the social-economic structures create three main categories and ample coverage: enterprises, state population.

Enterprises are those that have as creditors due handling of major monetary availability can be engaged in the lending process.

Because the process involves lending money redistribution is presumed availability of pre-existing processes or accumulation saving money. These processes are largely supported by massive population engaging in economic processes, those savings through income and rising labor productivity. The intake of the population to create credit resources is becoming increasingly causing ultimately developed economies in the availability of financial transformation, managed funds, similar to banking companies, possibly with a higher risk.

This, served as the overseer of the economic circuit may influence the situation of debtors and his policy is the feature that gives each state. For example, developed countries with a stable climate, have a balanced weight ratio of borrowers, leading to even to a reduction in state ownership. Thus, a "consumer economy" would generate a significant credit in favor of the population.

The promise of repayment

It involves hiring guarantees and risk-taking by the employer.

The risk of default: At any economic imbalances occur, malfunctions in case treasury, management company or due to circumstances and this means failure to pay or delay payment. Therefore, to predict the risk must resort to a preliminary analysis of all factors involved in the restitution of funds.

Thus it is expected an economic analysis (international situation), financial (financial situation), existing indebtedness (repayment capacity), legal (juridical form, connections with other companies). The risk of default can be covered and by using the so-called banking pool in conjunction with the procedures of the loan guarantee.

The risk of asset: Appears if the lender (bank) is unable to pay its obligations to depositors, due to mismanagement of loans. Loans that are granted by banks, which usually involve at funds, do not belong to the bank. It requires a specific policy guarantees. These may include personal guarantees (can be simple when the guarantor will be liable for non-payment fired first or solidarity when the creditor will be able to choose who to hold accountable according to solvency) and collateral (include retention, pledge, mortgage and privilege).

The term of repayment

It is represented by the time the loan is repaid, with the interest. There are different repayment terms. Short-term loans repayment at maturity is characteristic of them. This includes reimbursement of amounts relating to certain deadlines agreed interest during the loan period and at the end of the loan repayment in full. Often, the amount too big to be repaid by the end generates defaulted. For this reason goes to repay the loan with interest rate related.

Interest

In a free economic market interest rate plays the role of financial leverage used to obtain benefits or pursuing a strategy. If a higher level National Bank seeks a balance in the economy, aside from profitability, other market participants are interested to consolidate wealth or to increase their resources. Although it was billed unethical interest is accepted as an essential feature of the loan. Indebted population phenomenon has generated criticism to the bankers, priests or laymen. Aristotle in "'Politics' challenges the very principle of interest. The power of money should remain stable, not multiply with time. Market interest fixed according to the criteria or restrictions. This should be optimal for both the borrower and for the lender.

Warranty

It represents an instrument or commitment issued credit enhancement contract in favor of the bank or left at its disposal by virtue of the credit agreement is concluded, the purpose of which is to ensure the fulfillment of contractual obligations bank or the recovery of sums paid by way of loan, including costs in case of default by the borrower them. This bond loan contract is the main provision. By virtue of its customer is obliged to repay outstanding installments and costs due deadlines. The possibilities of repayment are determined based on financial and economic analysis of other indicators, data, studies, and notifications. Guarantees must be owned by the claimant and / or any third party that guarantees the loan applicant. Checking (from a legal perspective) and evaluation (of the financial perspective) guarantees provided by the borrower will be carefully made by the bank or by specialized staff. Land and buildings are valued below the "market" in a limit set by the bank rules to be easily converted into cash (liquidity have) in case of impossibility of repaying the loan.

1.3 LENDING TO INDIVIDUALS

In the last three decades, in all countries grew lending to individuals. Type of loans to individuals who probably reached saturation in some countries is the housing, while consumer credit is growing rapidly for banks (and risks properly).

With a portfolio of more than 2.3 million customers and with an extensive banking network, which counts 900 units at the end of 2014, BRD strengthened its market position individuals. BRD continued customer acquisition policy, focusing on two directions:

Expanding the network of agencies during the second semester, which strengthened the territorial coverage of BRD in areas with high potential;

Political enrichment activities of its commercial offer and a strong reactivity in terms of interest.

BRD is among the top banks active on the market of loans for individuals and on cards.

Having a forefront position in the market of consumer loans, SME lending and other specialized financial services, BRD proposes a new model for bank universal: Universal proximity bank, faithful to its vocation of service to customers. BRD Express was born from the desire to meet private customers and to simplify and retail banking operations. It is to transform the bank into an institution simple, accessible, welcoming and close to its customers. The success of this project was materialized by opening the first phase, 33 new agents, whose main assets are: proximity, speed, simplicity of operations.

Consumer loans

After two years of very rapid growth, consumer lending market has remained at a constant level, despite a strong slowdown during the first quarter of 2011. In this area BRD has taken many initiatives: extension of credit, introduction of foreign currency loans, promotional campaigns to maintain market share at a high level.

Auto loans

Policy durable partnership between Dacia Renault and BRD, since 2000, has demonstrated efficacy throughout 2011, with 14,000 vehicles financed under this agreement.

Sales Financing In 2011, BRD has created BRD Finance Consumer Finance, in partnership with Franfinance to assert its leading position in the credit market at the point of sale, within the European development strategy of SociétéGénérale in consumer credit.

In parallel, BRD Finance has entered into new partnerships, particularly in domestic appliances, the IT equipment, DIY, the furniture and mobile telephony.

Real Estate Loans

Benefiting from favorable economic factors, the housing market has been a very strong development. Very active on this market development, BRD, the only bank that proposes In 2010, BRD Finance Consumer Finance Franfinance international platform adapted to the specificities of the Romanian market at the point of sale credit. Building on this platform, which corresponds to the highest standards in terms of serving consumers and distributors, BRD Finance Consumer Finance has strengthened existing partnerships with important companies in the distribution, present in Romania, such as Carrefour, Praktiker or Bricostore.

An offer indexed market interest rates (Euribor or Libor), registered a 5% increase of its market share, which reached 15.5% .

BRD and the Romanian Association of Real Estate Agencies (ARAI) signed a partnership agreement according to which undertakes to collaborate in the best conditions, in order to promote exclusive of BRD, especially its offer of real estate and mortgage loans through membership ARAI.

Savings and investments

In 2011, the financial populations’ behaviors were still marked by a strong preference for liquidity. After the commercial success ATUCONT registered savings account, launched in 2003, BRD launched the same product in a foreign currency. In continuation of its policy of market segmentation, two savings accounts for youth market, ATUSTART and ATUSPRINT, came to complete the range.

Bank cards:

Exceeded one million cardholders, BRD continued to expand the range to provide all client segments most suitable product. Its range comprises complete credit and debit cards in local currency and foreign currency related services: insurance, telephone transfers, direct debit, invoice payment and holiday services. BRD is the only Romanian bank that offers such services associated with credit cards VISA Classic and MasterCard. Cards offer was enriched and segmented customer needs. It began with the internationalization of Visa Classic cards in lei and adding Travel insurance and assistance services.

The launch of a Euro card MasterCard Standard, which provides the opportunity to make euro payments without fees and card exchange MASTERCARD GOLD in lei, with a credit facility of up 10.000 EUR, intended for high-income customers, comes to consolidate its position on this market. This offer is included in a package together with a special credit for vacation.

LENDING TO BUSINESSES

Cash loans

temporary overdrafts (technical), authorized overdrafts, credit contract, discounting the effects of trade receivables evidenced endorsed or documents in the export letter of credit irrevocable, seasonal credit.

Loan amount: the need for feed stocks, existing stocks corrected for the activity of the lending period

Interest: indexed to the cost of resources

Duration: 12 months

Guarantees: are established depending on the economic and financial performance of the company

Loan for investors

Eligibility criteria can opt for these investment loans if the company meets the following conditions: less than 100 employees, annual turnover exceeding EUR 40 million or total balance sheet assets of less than EUR 27 million, more than 25 % of capital may be owned by a company or group of companies with over 100 employees and more than EUR 40 million turnover or total assets over EUR 27 million in total group of companies.

Loan amount: is established depending on the extent of the investment project, up to a limit of 75% of its value
The length of the loan: between 3 and 10 years, depending on the size and complexity of the project, the volume of credit and your ability to repay debts
Interest: benefit of both interest rates on credits in lei and in foreign ones.

FEI –BEI credit

The length of the loan: you can opt for these investment loans if the company meets the following conditions: less than 100 employees; annual turnover exceeding EUR 40 million or total balance sheet assets of less than EUR 27 million; 25% of capital may be owned by a company or group of companies with over 100 employees and more than EUR 40 million turnover or total assets over EUR 27 million in total group of companies.

Project value: Minimum: 40.000 EUR (or equivalent) max: 1.000.000 EUR (or equivalent).

Loan amount: maximum 75% of the total cost of the investment project (maximum 250.000 EUR).

Eligibility: 3 to 6 years, depending on the size and complexity of the project, the volume of credit and debt repayment capacity.

Guarantees: FEI free -guarantee

Guarantees own, which must cover at least 70% of the loan and interest for the first year.

1.4 CARDS

Maestro\ Visa electron

Maestro/Visa Electron is a debit card in LEI, valid for 4 years, dedicated to day to day banking operations. The advantages are that there is no commission for payments to merchants, including online payments.

You can used it home and abroad and your safety is guaranteed, due to the 3DSecure Standard and the attached chip technology. Comfort Insurance for indemnities in case of loss/ theft of the card and with no expenses for card replacement, identity papers/keys that are lost/ stolen at the same time as the card.

Standard MasterCard\ Visa Standard

MasterCard/Visa Standard is a debit card valid for 4 years, issued under the MasterCard logo (LEI/EUR)/ Visa logo (LEI/USD), with a free travel insurance package included.

There is not commission for insurance and for payments to merchants, including online payments .There is a safety due to the 3DSecure standard and the attached chip technology.

You can benefit of free travel insurance in the country and abroad and fast payments using contactless technology*. MasterCard\ Visa standard are for domestic and international use.

A la Carte Card

A la Carte is a debit card in Lei, valid for 4 years. The card is issued under the MasterCard/Visa logo with a personally unique design.

The advantages are the same like MasterCard\Visa Standard; the only difference is that u can personalize the design by uploading the favorite photo or choosing an image from the online gallery.

The flexibility and the safety issues are similar to Standard Mater Card/Visa Standard card.

Premium Cards

The Gold debit card is valid for 4 years, issued under the MasterCard logo (LEI/EUR)/Visa logo (LEI). You get preferential treatment and an extended insurance and assistance package; free of charge.

The extra advantages that MasterCard\Visa Gold Card are that you have access to discounts programs involving famous merchants, both locally and internationally, through MasterCard Elite program, and you also have higher transaction limits.

The flexibility they offer is similar to the previous cards.

Youth Cards

The ISIC debit card in LEI, issued under the Visa logo, is dedicated to full time students.

This card is valid for 2 years and offers access to an international discount program, valid in 120 countries.

Extra advantages to ISIC Cars:

Access to a international discounts program;

Reduced cost adapted to students;

A dedicated Help Line for free assistance in emergency situations.

1.5 Loans

Expresso Instant Loan

With Expresso Instant Loan the documentation is simplified; you have to present only the identity paper and income statements, in case of salaries.

You get free monthly loan administration fee and when you pay only the interests, the fees, and the insurance premium, the partial grace period is up to 6 months.

You can contract the loan in RON, for up to 5 years, with an attractive interest rate which is fixed.

A wide range of income types are accepted:

salary income

pensions

dividends

copyright

rents

income from freelance activities.

You can stay relaxed the entire credit period because Expresso Instant Loan offers you and your family protection in case of unforeseen events like incapacity for work , unemployment , total disability , death etc. .

Expresso Loan

The benefits for this loan are very generous:

they are no administration fees;

no analyses fee for revenue domiciliation.

The partial grace period for the entire loan is 9,25 %, and you get an additional discount for the revenue domiciliation of, 8,33 %.

The loan can be contracted either in RON or EUR, for up to 5 years with an attractive interest rate which is fixed for LEI, but changeable for EUR, depending on the monetary index Euribor for 3 months.

Expresso Loan provides you funding up to 65,000 LEI / 15,000 EUR, without mortgage, but if you need more ExpressoNonStop will offer the financing you need.

A wide range of income types are accepted:

salary income

pensions

dividends

copy-write

rents

income from freelance activities.

Car loan

Financing in Lei or Euro with an attractive interest rate and a maximum period of 5 years.

The loan give you the possibility to purchase any type of car (new or second hand, local production or imported).

The partial grace is up to 6 months (at your choice), when you pay only the interest, the fees, and the insurance fee.

A wide range of income types are accepted:

salary income,

pensions

dividends

copyrights

rents

income from freelance activities.

You can conclude CASCO insurance for your car and also a life insurance for you and your family in case of unpredicted events, in order to feel secure during the loan period.

The insurance policy will be signed at the same time with the loan contract for the entire loan period, but the insurance fees will be paid on a monthly basis.

Loan 10

Loan 10 takes care of your personal needs and finances your student – related expenses (books, rent, pc, printer etc.) up to 100 %.

There is no down payment, with flexibility in repayments by constant or decreasing installments, you have preferential interest and the partial grace period is up to 12 months, when you pay only the interest, the fees, and the insurance premium.

This loan is up to 12,000 RON, without guarantees, for a period of 10 years, with a fixed interest rate throughout the loan period.

You can get the loan even though you do not get any income. In this case, we can take into account the salary of one of your parents or of both of them.

In case of Credit 10, the only guarantee is the security on your accounts opened with BRD.

Work and travel loan

Loan dedicated for supporting expenses in case of participating in Work&Travel type programs.

There is no down payment , the partial grace period up to 14 months, when you only pay the interest, the fees, the insurance fee and you repay the entire capital, in a single installment, on the last due date and is also a flexible repayment by constant and decreasing installments.

The funding is up to EUR 3,000 / USD 4,000, in order to cover the expenses for participation in this programme:

Programme tax;

Tax related to visa obtaining (if applicable)

Transportation cost

Other costs (up to 15% of the loan amount)

You can get the loan even though you do not get any income, so the bank can take into account the salary of one parent or of both of them.

In case of Work&Travel loan, the only guarantee is the security on your accounts opened with BRD.

Loan for studies

The loan for studies offers you financing in RON or EUR for up to 10 years, or up to 20 years with mortgage, no guarantee needed. The financing is up to EUR 15.000 with no guarantee or up to EUR 100.000 with mortgage.

There is a partial grace period up to 6 months (at your choice) when you pay only the interest, the fees and the insurance premium and also is no also a down payment.

A large range of revenues are accepted: from salary income, pensions, dividends, rents, to income from freelance activities

Loan for medical treatment

Credit with financing in LEI or EUR amounting to EUR 20,000 (without guarantees) or up to EUR 100,000 (with guarantees). This covers the cost of treatment or of the medical intervention, of hospitalization expenses, and of related expenses. The loan can also be contracted by someone else from your family.

Total grace period is up to 6 months (without mortgage) / 12 months (loan with mortgage), where you only pay the insurance premium.

The loan period is up to 20 years and also is no down payment.

A wide range of income types are accepted:

salary income

pensions

dividend

copyright,

rents etc .

The loan offers you safety for the entire credit period through the conclusion of a life insurance, which offers you and your family protection in case of unforeseen events.

Habitat loan

Mortgage/real estate loan for the purchase of buildings and for building, expanding or modernizing them.

Financing in LEI, Euro or USD, for a period of 30 years, with an attractive interest rate.

The credit period is up to 30 years with a down payment of 5 % at least.

Habitat loan offers you’re an advantageous interest differentiated by the down payment and the credit period, and an additional loan up to 20 % for notarization, valuation expenses or other additional costs. The grace period can be up to 12 month (for construction), optional, at your choice.

A wide range of income types are accepted:

salary

pensions

dividend

copyrights etc.

If you want to purchase a new home, you can guarantee the loan with the real estate property you want to purchase, of with another one owned by you or by a third party.

In the case of building the real estate property, the loan guarantee can be represented by the land and home you will build.

The payment of the related premium is paid on a monthly basis, along with the loan installment. You will also conclude an insurance policy for the real estate property brought as guarantee.

In the case of loans extended for the construction, modernization, finishing of the construction, an insurance covering the risk of failing to finish the construction will also be concluded.

First Home

The First Home mortgage loan offers you the possibility to buy through the First Home program, either a finished home, or one that is in the process of being finished, in various stages of construction, meant to be purchased after being finished.

You have the possibility to build your own home either individually, or through associations composed of minimum 2 beneficiaries.

Extremely attractive interest rate with Robor 3M to which is added a margin of only 2% if you have or if you receive your income at BRD; otherwise, the margin is 2.5%.

The financing will be in Lei for a maximum period of 30 years, with which u can buy or build a house. The down payment will be a minimum of 5 % of the value of your project and there will be no extensions or management fee.

You can benefit from the First Home credit if: You do not own a home, whether separately or jointly with your spouse You own, separately or jointly with your spouse, one home at most, acquired by any other means than the First Home Programme, with a useful area below 50 sqm.

CHAPTER II BRD – FINANCIAL INDICATORS

BRD Share

Starting with January 15th, 2001, the Bank’s shares are listed in the 1st category of the Bucharest Stock Exchange. The shares are included in the BET, BET Plus, BET-BK, BET-XT, and BET-TRindexes.

The Bank’s shares are:

ordinary

nominative

dematerialized

indivisible.

According to the Articles of Incorporation, article 17, letter k, the shares of the Bank are traded freely on those capital markets set by General Assembly of Shareholders („AGA”), while complying with the legislation on the trade of shares issued by bank institutions. The closing price for BRD share as at December 30th, 2014, the last trading day of the year, was of8.75 RON/share (9.00 RON/share at December 30th, 2013).During 2014 neither the Bank, nor its subsidiaries bought back own shares.

Fig. 7- BRD shares

Source: http://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=BRD

Fig. 8- BRD shareholder structure

Source: http://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=BRD

Dividends

According to the Romanian legislation and the Articles of Incorporation, dividends are paid from the funds created for this purpose after the approval of the General Assembly of Shareholders, within maximum 3 months from the approval date of the annual financial statements for the year then ended.

The change in the volume of approved and distributed dividends is presented below:

Fig. 9- BRD Dividends

Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

Resource growth

GDP annual growth was 2.9% in 2014, according to the provisory data provided by the National Institute of Statistics.

Banking system deposits advanced in 2014 (+7.9%), mostly on the companies’ segment (+10.7%*),in spite of the declining trend in interest rates. Therefore, the gross loans/deposits ratio stood at 91.4%at 2014 end, against 104.6% at 2013 end.

The write-off and sales operations performed by banks led to a decline in the Loss 2 ratio to 13.9% at 2014 end, compared to 21.9% at 2013 end. Coverage of Loss 2 loans with provisions was 70% at2014 end compared to 68% at 2013 end. The banking system capital adequacy ratio remained sound, reaching 17.28% at December 2014(15.46% at 2013 end). In 2014 BRD continued to have a large customer base, despite a slight decrease in the number of active clients. The bank further promoted its remote banking solutions which led to a higher equipment rate (number of products per client) of individual customers.

Fig. 10- BRD equipment rate for individuals

Source:

http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

2.1 RISK MANAGEMENT

BRD consolidated risk team in 2014 and expanded coverage. Direct subordinates of the President & CEO, she is poised to oversee all bank risks:

liquidity and solvency policy, managed with the Financial Department;

credit risks, with the objective of maintaining a balanced portfolio each economic sector. Risk Department also ensure, training of officers in lending;

market risks, taking into account the development of interest and foreign exchange operations, require a more elaborate control;

operational risks, the implementation of a business continuity plan covering both the central and agency network.

To mitigate the risks in lending, the bank has distributed in a balanced way the different sectors. On 31 December 2014, sectors with high exposures in total commitments were the following:

Fig. 11-

Operational performance quality

The operational results experienced strong growth: gross operating result is up 37% in real terms, due to 25% increase in net banking income; operating expenses are well controlled (+ 13%) and the current result before tax (4,911,000 lei) increased by 51%. These performances are accompanied by strengthening the financial structure of the Group solvency index was 16.4%, with a return on equity ROE of 30%.

Balance sheet

The Bank continued to be the second largest bank in Romania by total assets, with the following market shares:

Fig. 12- BRD balance sheet ; Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

The total assets decreased in 2014 by around 4% both for the Bank and for the Group and had the following structure:

Fig. 13- BRD Total assets

Source:

http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

The most liquid assets of the Bank, namely cash and current accounts with the Central Bank, and loans and advances to credit institutions decreased in 2014 by around 19%, and their weight in total assets declined from around 22% to approximately 19% for the Bank and 18% for the Group. The most important component of this aggregate is the minimum compulsory reserve held with the National Bank of Romania (RON 4,566 million as at December 31, 2014 from RON 6,924 million as at December 31, 2013).

The comparative statement of liabilities, for the period 2012 – 2014 is as follows:

Fig.14-The comparative statement of liabilities

Source:

http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

The share in total liabilities of the customers’ deposits increased to 90.8% at 2014 end for the Bank(from 86.2% at 2013 end) and to 89.1% for the Group (from 84.7% at 2013 end), leading to a higher degree of financial autonomy.

Profit and loss account

Net banking income declined in 2014, mostly as a result of the net interest margin contraction.

Net cost of risk declined by 43% against 2013 with favorable evolutions on both the corporate and individuals’ segments. The reduction in cost of risk was the main determinant of the return to profitability in 2014. The Bank managed to reduce its non-performing loans ratio (from 24.9% at 2013end to 20.3% at 2014 end) notably thanks to the implementation of an active write off and sale policy, while improving the coverage of non-performing loans with provisions (from 69% at 2013 end to 71%at 2014 end).

The net loans/deposits ratio improved in 2014 to 73.4% at year end (from 76.8% at 2013 end) for the Bank and to 74.5% (from 77.8% at 2013 end) for the Group.

The comparative income statement of the Bank for the period 2012 – 2014 is presented below:

Fig.15–Income statement of the Bank

Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

The comparative income statement of the Group for the period 2012 – 2014 is presented below:

Fig.16– Income statement of the Group

Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

At bank level, the net interest margin decrease by 7.9% versus 2013 was determined by the decline of average net loans volumes on corporate segment and by a negative structure effect (higher weight of housing loans in the portfolio, lower one for consumer loans).

The net fees and commissions contracted slightly, by 1.4%. They were positively influenced by higher revenues from investment banking activities and custody and depositary services.

Deposits and loans

The structure of the customers’ loans evolved as follows over the last three years:

Fig.17 –

Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

Loans to individuals were quasi stable (-0.5%) compared to 2013 end, with housing loans posting a positive evolution. Consumer loan production increased by 85% versus 2013. In this context, BRD consolidated its position on the individuals’ loan market, with its market share slightly increasing compared to 2013 end.

In spite of the fierce competition on the large corporate segment, BRD’s loans to this segment advanced versus 2013 and the Bank was the leader on sectors such as energy, retail and telecom.

The Bank also maintained its leader position on the factoring market in 2014.

The customers’ deposits structure evolved as follows over the last three years:

Fig.18-

Source: http://www.bvb.ro/Raportari/2015/BRD_RA2014_en.zip

Individuals’ deposits advanced by 8%, and the Bank consolidated its market share, which increased by 0.3 pt to 13.3%. On the companies’ segment, the approach is pragmatically adjusted depending on the liquidity situation of the bank.

2.2 Operations of the current account and transfer funds

Accounts for legal entities in national currency and foreign currency

For opening or maintaining an account there is minimum capital requirements. To calculate the interest rate numbers, are used daily and monthly amounts accumulate in the account. Accounts can be opened in national currency or in any currency traded foreign currency transactions being made respecting the Central Bank of Romania rules.

Deposits

It is possible to make deposits in national currency (for residents) and foreign currency in different terms from 3 days to 12 months. The minimum amount for a deposit varies from bank to bank, depending on the liquidity the bank needs to attract from its customers. Interest rates are updated regularly (weekly or monthly) but contracted interest rate for deposits remains

unchanged for the entire period.

Transfers of funds for businesses

Domestic payments

Payments in national currency shall be made at the customer's order, the economic agents entering the settlement relations or the state budget.

Domestic payments in foreign currencies are not performed, because they are not in accordance with the banking legislation.

Foreign Payments

External payments in national currency are not performed.

Foreign currency payments are covered by the Central Bank of Romania Currency Regulation. The purpose of this is for import payments, based on external payment invoices, using foreign currency payment orders.

Cash Transactions

Cash transactions in local currency or foreign currency are deposits or cash withdrawals. Current local regulations may limit cash withdrawals to a maximum amount (usually 30 bil. RON), however, in certain circumstances, the limit withdrawal above this amount can be approved, with justification (pay day payroll, purchasing merchandise from natural persons).

2.3 Credit

Advances in current account

Assume the client's current account crediting in RON or foreign currency. For this, the customer must submit the documents showing the coverage of the advance in a given period.

Short-term loans

It is granted for a short period, not exceeding one year. They are used to finance working capital. They can be in RON or in foreign currency, for the companies that are engaged in import-export.

Medium and long-term loans

It is granted for 1-2 years old (medium) or 5- to 10 years (long term).

Credit lines

They are offered in RON or in foreign currency for a period of 12 months, the usual deadlines are 90 or 180 days. It is granted to supplement working capital or sponsor, or for export activities, while the share of exports in turnover is significant and permanent in nature.

Leasing activity credit

It offers lei and in foreign currency over a period of 3-5 years. Is granted for the acquisition of machinery, vehicles and other goods, lending them for a fixed period, for a previously calculated rent.

Forfeiting credit

In is granted in foreign currency, to legal persons with export activity, for a maximum period of 5 years. The banks` client sells to the legal person the foreign currency receivables that he owns as a representative. The title will be analyzed by a foreign bank approved by the customer's bank or the shooter's favor will be a letter issued by a bank.

Discount credit

It gives corporate customers for a period not exceeding 12 months. Awarded for financing of trade by buying the bank bills (bills of exchange, promissory notes) with retention of the nominal discount rate.

Factoring Credit

It grants legal persons in lei and in foreign currency, if the bank customer, as a supplier to third parties submits invoices arising from the supply of export goods, performance of works and services.

Loans to document in collection

It gives business customers a maximum of 45 days. Credit is granted on the basis of a document submitted for collection for shipped products, services rendered, works on the basis of existing contracts between the parties.

Loans to individuals

It is provided for:

Building / housing purchase, for a period of up to 15 years; the good that will be bought it will be accepted as collateral, to release under warranty and mortgaged assets.

Arrangements, extensions and building repairs, for a maximum of 5 years; will be used as collateral mortgage-ranking I. In these cases, the form of settlement is the direct transfer from your separately loan account amount or by payee name, using the payment order prepared by the client.

Purchase of goods with payment in full (household goods, cars, etc.). In this case, the asset must be new;

Purchase of treasury bills, units of investment funds;

Personal needs (holiday, travel abroad).

Assuming commitments on behalf of clients

It may take the following forms:

letter of credit;

incasso;

letter of guarantee;

Documentary letter of credit

The letter of credit is a way by which the bank settlement buyer undertakes, in his order to pay the seller, through its bank or other banks, a certain amount of money, provided the seller to submit by a given date, documents proof of dispatch of the goods ordered.

Documentary collection

Collections payment is one way in which the creditor transmits his bank documentation proving its contractual obligations and submits them for encashment bank to another bank that serves the debtor. The latter teach and transfer the amount to the debtor after payment creditor bank. It is a payment method simpler and less costly than the letter of credit, but is slower and shows no guarantee that the lender will charge its claim.

The letter of guarantee

It is an irrevocable commitment of guaranteeing trade transactions from a bank.

2.4 Treasury Operations

Foreign Exchange Operations

Declaration of currency payment

Companies that carry out export must prepare Declaration of currency payment (DIV) by stating that export goods, quantity, value, currency of payment, payment period and method of collection. DIV is a company's commitment currency repatriation.

Currency auction

The purchase or sale of foreign currency by companies is done exclusively by bank currency auction.

The auction allows currency purchase / sale of foreign currency by the bank to a customer at a domestic course set by each bank, depending on the availability of foreign currency selling of other companies’ clients from the same bank.

Purchasing currency

In order to purchase through auction currency exchange, companies must submit a purchase order, to have the necessary availability lei and present the invoice you want to pay.

Selling currency

To sell currency through the foreign exchange auction, companies must submit a sale order for currency and must have in account, from its own resources (export, capital, loan firm by partners, other sources), the sum of currency for the market.

Money Market Deposits

Deposits

It is performed in lei and in foreign currency. They can be for terms of one day (overnight) to longer terms of 12 months. The interest rate is negotiable, depending on the interest rates on inter-bank market. For overnight bank deposits type may require a minimum deposit ceiling from which interest may be granted (ex. one billion lei).

Certificates of deposit rated

Terms are clearly defined: 1, 2, 3 and 6 months. They value 10,000,000 or multiple of 10,000,000 lei for legal persons. Certificate of deposit is nominal.

After expiration date of the redemption, the interest is no longer applied.

2.5 Capital Market Operations

Banks may perform custodial services for its corporate customer’s (securities).

The Bank will participate in the final settlement of securities transactions performed by securities companies offset the Bucharest Stock Exchange and the National Securities Clearing, Settlement Storage on the stock market on behalf and by order of the client.

For investment funds or investment companies, the bank provides storage and analysis activities.

Other banking services

provide, upon request, information on the creditworthiness of partners, both local and foreign (banking network only)

Overall consultation on CIP file at the client's request by sending the entire file on the floppy disk on a monthly subscription basis

technical consultant to the opening of accounts, investments, demand for loans, deposits guarantees etc.

banknote authentication

Issuance of bank statements

Statements confirmations on clients` request

Confirmation of balances on request

Records of capital to form a company

Orders issued by the bank from its customers in order to other bank customers

Operations ordered by customers in the fore market and currency conversions

Exchange lei / foreign currency for individuals

Chapter III Computerization of lending activity in BRD – GSG using structured methods

3.1 Conceptual modelling

Merise is a systemic design method, developed in France.

The method has a matrix structure and is of the form:

Conceptual Communications Model (CCM)

CCM provides a graphical representation of the process of information. An incomplete or incorrect image will cause errors in the operation of the final product.

In banking, internal actors are identified with bank departments or banking workers (inspector loans, account officer, director, and accountant).External actors can be correspondent banks, BNR, insurance companies, individuals or legal reviews.

Given the banking system is highly complex, but are relatively independent functional modules, these modules can be treated separately at a conceptual level, following that in the end to achieve connection modules within a single applicatioN.

Making CCM can be considered as an iterative process if the analyzed economic phenomenon is complex. Thus, CCM developed in the first phase globally can drill several core activities of CCM for financial and banking unit.

CCM creates fully premises to realize a correct conceptual processing model (CPM).

Conceptual modelling of data (CMD)

CMD sets conceptual entity types, attributes and associations needed to MIS, independent storage and data access mode.

Methods for determination of CMD: the imput-output method , the output-input method and the mixed method.

The conceptual data modeling includes the following steps:

Determination of the basis of attributes

It envisages studying the structure of the inputs and outputs specific information SIFB in terms of semantics, type, maximum length, of the calculation and establishes a computer system associated inputs / outputs and the database structure.

Establishing conceptual entities in the CMD

Attributes defined for base attributes (dictionary attributes) are grouped into conceptual entities complying with the requirements of normalization.
The group is considering various criteria.

Determination conceptual associations between entities under CMD

Based on functional dependencies between attributes information database, determine associations between conceptual entities.

Associations are relationships that are established between conceptual entities. An association does not have an independent existence. An association exist only if the achievements of entities linked exist. The associations can have their own attributes.

The cardinality express the participation of the achievements of the entities to the associations. Cardinality is minimal (0,1;1,1) or maximal (0, n; 1, n). The associations of type mnare resolved through two joint 1,n and 1,m (1,n).

The integrity constraints are rules that are followed by the elements (attributes, associations, entities) and their inclusion in the early stages of design leads to a faster trouble shooting errors that occur in running applications.

Conceptual model of processing (CMP)

CMP associated with a MIS contains detailing operations processes and complex operations simple operations, succession and purpose of these processes.

Through a graphical formalism are shown participating elements: actors, events causes tripping source synchronized activities and operations, emission conditions (operation), and results verification rules issued.

Operation

Any area reacts to stimuli. The behavior of the field is highlighted by the operations that are running. So the operation is an action / plenty of action running event due to events triggering synchronized actions that will produce result events. The assembly is linked to triggering events, synchronization, operations with activities and events resulting from a block operation.

Synchronization

Synchronization states that the operation may be triggered under certain conditions – the simultaneous existence of two or more triggering events. These events are related in Boolean expression operators.

Processes

The processes are complex assemblies of operations executed in response to events that produce successive results to achieve an ultimate goal.
Construction of a conceptual model of processing should consider compliance with rules and drafting stages.

Logic communication model (LCM)

MLC aims to establish the organization of data within the system.

To this end it shall take into account the following criteria:

the size banking company;

the nature and specifics of working MIS;

the degree of distribution in time and space of the processing MIS;

the type of organization the banking company (headquarters, subsidiaries,
    agencies, representative);

architectural design of the building where the company is headquartered bank

Logical Processing Model (LPM)

LPM transformation resulting from conversion of the CMP by setting specific elements CMP and LPM. The conversion of the CMP at LPM is shown briefly in the table below:

In developing the logical starting the processing of the complex nature but unitary system, so that they contribute to ensure the optimal functioning banking unit.

The system has specific and homogeneous processing. The processing sub-activity provides specific outcomes and results analyzed compartments that constitute input for further processing.

Physical Modelling

Physical communications Model (PCM)

FCM refers to the LAN topology; MIS related in structure that the number of workstations depends on the number of functional departments and / or the number of people who will use the system.

LAN security is necessary because of the specific data processing and communications specifics a banking company, which must be a high degree of confidentiality. LAN Security uses a set of standards, called standards for interoperable security LANs (standard for interoperable LAN security – SILS). This standard contains measures to protect exchange information and for reading, modification or unauthorized destruction.
Thus, security is applied to minimize the risk exposure of computing resources, data and procedures from unauthorized use, both inside and outside MIS.

Physical data model (PDM)

MFD provides the description of all tables in the database.
Video format input / output level of automated procedures are used either for the database’s updates or for printing data from the database in the form of reports or indicators.
Menus processing provides the user interface by enabling automatic procedure for processing or execution of a sequence of commands.

Physical processing model (PPM)

PFM takes all the specific physical modeling (communication physical model, physical data model, video format input / output and processing menus) and translates them into an operational system of automatic procedures, structures and models processing.
The criteria used in making MIS procedures are:

Typology and nature of specific processing principal (basic) passing a banking company (opening of accounts, receipts and payments through the house, granting and repayment of bank loans, bank closing day);

The nature and specifics of inputs, outputs and each processing applications that were associated with specific core activities of a banking company;

The need to ensure a fully centralized control of all processing performed on the database using the menus efficient processing previously determined;

Minimize the number of procedures required under performing all processing on the database.

Case Study

Management Information System for loan activity

BRD – GroupeSociétéGénérale (BRD-GSG) wants to implement a management information system (MIS) for credit activity. Between the client and the bank is concluded a credit contract where are specified the constitutive elements and also the rights and obligations of the parties.

Are known the following information:

The value on the loan, period of the loan, interest rate and the grace period.

The client will identify with his ID card, in case he/she is a natural person, otherwise if the client is a legal person, the identification will be made with the fiscal code.

For each credit agreement made by the client, the bank will conclude an insurance policy for an amount representing 1.5% of the loan.

The credit agreement is concluded in a particular store (identified by a code, name and address) of a credit counselor (identified by code adviser, surname, name and function) and refers to a client (identified by item code and name).

Notice for each loan, the client has staggered payment obligations in a graphic refund. In the graph, are provided: trance number, due date, rate, interest rate, total monthly payment and the number of contract.

Payment is by cash or debt payment document. In this case, in the payment document will find data about: payment document number, document date, amount paid, contract number and the tranche paid number. To each contract it corresponds to an open credit account reflecting the amount of the loan and reimbursements effectuated by the client.

Management Rules

Beta Bank proposes the following management rules:

1. A client can request more credit contracts.
2. Every credit agreement corresponds to a credit account that follows reimbursements situation for the loan.
3. The payment document shall pay one installment payment.
4. For each granted loan an insurance policy is ended. Policy can provide either the good (in which case it is an insurance policy against the risk of fire) or the person who contractedthe loan (in which case a life insurance).
5. When it became overdue, installment is calculated with a penalty interest of 0.5% per day of delay.
6. The loan is granted with a fixed interest during the whole period of the loan. The percentage of interest with ending a contract is in force at the time of concluding the contract

Integrity restrictions

 It defines as integrity restrictions the following restrictions on the field and structural restrictions.

Restrictions on the field:

1. Value of the credit must be greater than one million.

2. Percentage of insurance takes value of 1.5%.

3. Credit account closing date coincides with the credit agreement.

4. Attribute "currency” from the entity CONTRACT takes values from "RON" "USD" "EURO".

5. The attribute "type" of CUSTOMER entity refers to the type of street that lives and takes values in the "Street", "Avenue", "Ale”, and “Square".

Structural Constraints – restrictions identifiable entities:

1. ClientCode is the identifier for CLIENT entity. He must take different unique values and NULL value.

2. Similarly, we define restrictions for identifiers other entities: ItemCode, policy number, AdviserCode, StoreCode, AccountNumber, etc.

Conceptual Communication Model (CCM)

REQUEST FOR THE LOAN

LOAN DOCS

ANALYSIS

DOCS TO ASSESSMENT

ANALYSIS

APPROVAL OF THE LOAN

CONCLUDE LOAN CONTRACT

CONTRACT

CONTRACT

RECORD CONTRACT

PAYMENT ORDER

WITHDRAW

PAYMENT

RECEIPT

UPDATE ACCOUNT

CDM – CONCEPTUAL DATA MODEL

CONCEPTUAL PROCESSING MODEL – CPM

LOGICAL COMMUNICATION MODEL – LCM

There are 3 main elements that must by design in this step:

Architecture – Level 2 Client –Server Architecture

Relational data base manageemnt system – Access 2013

Querry language – SQL 8

LOGICAL PROCESSING MODEL – LPM

LOGICAL DATA MODEL – LDM

PHYSICAL COMMUNICATION MODEL

PHYSICAL DATA MODEL

Chapter IV

Conclusions

Companies must confront a variety of changes to achieve the objectives:

globalization, with increasing competition from around the world

The need to redesign business;

rapidly changing demographic profile of the workforce;

need to form strong alliances to meet the requirements and offers customers and suppliers.

As a result of these changes, it must be the efficient use of information technology. It is not enough just to be a strong relationship between technology and strategy. Managers must remove barriers of organizational structure and the attitude of employees towards the use of new technologies and changing, so computer technology to become a catalyst for change – change that to create completely new products and services company.

Some firms have achieved remarkable results in lower costs and improve administrative processes and operational performance. Others have achieved only modest gains in certain areas of their operations. But there are too many firms that do not qualify for observe the opportunities that technology can offer.

For effective application of information technology manager must:

understand the technology and be able to see its applications to be important in solving business problems;

take into account not only use the computer system to modernize the department or operation, but the fundamental processes work and change of the whole company and its relations with suppliers and customers;

ensure that information technology is seen from the perspective of guidance to the success of the company's strategic business plan, rather than a technical perspective.

This last aspect creates a major challenge for management: building effective working partnership between those who determine business strategies and those dealing with computer technology. The development company may be new management positions such as CIO (Chief Information Officer), to coordinate strategic planning of information technology planning in order to improve coordination and communication between different departments of the company.

Computer technology and business strategy

Speed, size, cost and capabilities associated with computers, automated and telecommunications offices provide opportunities for solving business problems or to improve the conduct of business.

The value generated by computer technology varies from company to company and even between different departments within the same company.

For some firms, information technology is perceived as a tool to improve the efficiency and profitability of the company. For others, such a technology is seen more as an administrative convenience.

In order to maximize the income generated by an investment in technology, computer technology must be adapted to the firm's business strategy

In their development, firms can adopt one of the following basic strategies in relation to competitors:

Becoming manufacturer or service provider with the lowest cost in the industry.

Develop specialized services or products that will position the company apart from others in the industry.

focus on one market to sell or to occupy a specific niche products.

Companies that adopt the strategy of lower cost may use information technology to reduce costs. Priority should be given to generating growth in labor productivity and other resources.

Companies that adopt a strategy of providing goods or specialized services to differentiate itself from its competitors can use computer technology to add unique features their products or services. Priority should be given to projects that can improve the quality of products or highlight the uniqueness of customer service

Companies that adopt a strategy of supplying goods or services to a select niche customers can use computer technology to provide superior service to customers. This can be done either by strategy or by the lower cost of product differentiation for the selected group of customers.

The chosen strategy provides a framework within which the company develops activities. The company's success will depend on the extent and manner in which the chosen strategy is implemented. The main purpose of information technology is to support basic strategy. It must be clearly understood by the manager system and used as the basis for selecting priorities related projects.

The vision of the IT system management

Managers see the computer system as a way to reduce costs and improve economic efficiency, or as a way of achieving competitive advantage.

Reducing costs and improving economic efficiency

Some successful companies keep costs down, make plans and act globally, producing goods and services in development cycles of increasingly faster. These facts conducted under a continuous development of the business environment in which the boundaries between companies have diminished, a competitor can be a supplier, partner or customer. Computer technology is used by these companies to reduce costs and ensure the reliability of current business operations.

Achieve competitive advantage

The competitive advantage is the essence of the company's performances in competitive markets. After decades of expansion and prosperity, many companies have lost their competitive advantage by trying development and diversification.

The competitive advantage can be obtained by:

charging lower prices than those of competitors to obtain equivalent profits;

ensure a safe return, rather than pricing per product premium.

Bibliography

BRD Cards- Isic Card-https://www.brd.ro/en/your-personal-account/cards/youth/isic-card

BRD Carsd – Maestro Visa Electron-https://www.brd.ro/en/your-personal-account/cards/maestrovisa-electron

BRD Cards- Standard MasterCard-https://www.brd.ro/en/your-personal-account/cards/standard-mastercardvisa-card

BRD Cards- A la Carte card- https://www.brd.ro/en/individuals/cards/la-carte-card

BRD Premium Cards- https://www.brd.ro/en/individuals/cards/premium-cards

BRD MasterCard Gold- https://www.brd.ro/en/your-personal-account/cards/premium-cards/mastercardvisa-gold-card

BRD Platinum Card- https://www.brd.ro/en/your-personal-account/cards/premium-cards/mastercard-platinum-card

BRD Loans- Expresoo Instant Loan-https://www.brd.ro/en/individuals/loans/personal-loans/expresso-instant-loan

BRD Espresso loan- https://www.brd.ro/en/your-personal-account/loans/personal-loans/expresso-loan

BRD Car loan-https://www.brd.ro/en/individuals/loans/personal-loans/car-loan

BRD Loan 10-https://www.brd.ro/en/your-personal-account/loans/personal-loans/loan-10

BRD Work and Travel loan- https://www.brd.ro/en/individuals/loans/personal-loans/worktravel-loan

BRD Loan Studies- https://www.brd.ro/en/individuals/loans/personal-loans/loan-studies

BRD Loan for medical treatment- https://www.brd.ro/en/individuals/loans/personal-loans/loan-medical-treatment

[1] Basno, C., Dardac, N., Floricel, C., "Monedă, credit, banci", Editura Didactică și Pedagogică, București, 1994

Laurentiu Fratila – Lecture notes