A career in banking is one of the most lucrative careers one could aspire for. Naturally, the number of aspirants pursuing a banking career is increasing by leaps and bounds every day. As you can now well understand, if you want to be ahead in the race and score an edge over other candidates, you have to be thoroughly prepared, be confident and be skilled in how to ace an interview.
Following is a list of common banking interview questions that are generally asked during these interviews and if you prepare the answers to these questions in advance, chances are that you will sail ahead of the rest smoothly.
Usually the opener or the opening question is centered round the "tell me something about yourself". With this common question, the interview board sets the ball rolling.
Instead of giving stereotyped answers, if you pack in a few punches by answering the same things in the required format a bit differently, without deviating from the context, you can land quite a few brownie points by impressing the interview board.
Now let me cite a few general questions. You will be asked why you have chosen as your profession this line of banking. You will be asked to elucidate upon your previous experiences, if any. You will have to honestly tell the interview board the reasons for leaving your previous job.
And then of course, you will have to tell the interview board the reasons for wishing to work with this particular bank, how long you intend to stay with this bank. How and where you would see yourself in the next 5 years and other such questions. I am sure you have got a hang of these general questions.
The next part will be reserved for finance related common banking interview questions. You may be asked the following questions such as you would be asked to purchase a stock on that day and you will have to say which stock you would purchase and why. You have to substantiate your answer with logic.
Then you will be asked to explain how the economy of United States gets affected by rising interest rates. You might also be asked to explain in details why and when you would use a cost of equity versus a WACC and vice versa. You may be asked to explain the meaning of cost of capital.
Then you will be asked to elucidate in full details on the techniques used for valuing firms. You might even be asked which techniques you would love to use and why?
You may also have to describe all those major issues a company will have to face if it wants to enter a specific industry under the porter framework.
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By Inghy Banedr