In: Finance
You are the CFO of a major bank seeking to make investment decisions in the current economic situation in the US. What would you do and why?
Well as a CFO of a bank , I would be possibility be looking into a long term investment by purchasing of top companies shares. Because of the ongoing pandemic stock markets are performing in a poor condition therefore our bank would get high net worth shares in a low price.
I also would probably increase a very small percentage in the credit card interest rates which customers might not notice, by doing this I can procure more liquid funds. That is if I have 5 million customer and if I increase .25 cents might not be a noticeable increase but bank can earn a good amount from the 5 million credit card customers. The bank can either utilize this money for helping the poor and most affected peoples in newyork to battle the covid 19 or PPE and masks would be provided.
The idea behind this is people will not forget the businessess who were with them at the time of need. Therefore this will definitely increase the goodwill of the bank and will be very much benefiicial for the bank after the pandemic.