Banking Structure Essay

957 Words Jun 27th, 2012 4 Pages
CRAM Exclusive
Essay Sample: Page 2
Every public company must have a board of directors

The term liquidity is often used in multiple circumstances. An asset’s liquidity can be used to describe how quickly, easily and costly it is to convert that asset into cash (Berger & Bouwman, 2008). Liquidity can also be utilized to describe a company by the sum of cash or close to cash assets a company has. The more liquid assets a company may have the higher liquidity. Liquidity risk is the risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss. If the bank is not able to pay its obligations it can lead the company to face serious financial issues. Additionally, liquidity risk can be as well be defined as the counterparty to a transaction. In this sense the term means the risk inherent in the fact that the counterparty may not be able to pay or settle the transaction even if they are in good financial standing, because of a lack of liquidity (Petria & Petria, 2009).

Interest rate risk is the distinction in time, credit, and rate between an asset and the liability used to fund the asset. In the case of a bank, the primary legal responsibility is its deposit base, the certificates of deposits it distributes and savings accounts, along with other items. Certificates of deposit and savings accounts are interest-rate delicate items for which the
CRAM Exclusive
April67140Shoe

Related Documents

  • Banking Essay

    A PROJECT REPORT ON FINANCIAL SERVICES OF BANKS Submitted to University of Mumbai in Partial fulfillment Of the requirement of the Degree of B.Com ³BANKING & INSURANCE´ Under guidance of PROF. RUEEN PATEL VPM¶S K.G Joshi College of Arts N.G Bedekar College of Commerce Thane (E) Academic Year: 2010-11 BYJEMINI.J.PATIL ACKNOWLEDGEMENT In completing this project I am deeply conscious of my debt to all those, without whose warm support, enragement & guidance this project was not possible

    Words: 11540 - Pages: 47
  • Essay on Banking Sector

    BANKING CHALLENGES IN THE 21ST CENTURY Dr. Muhammad Anwar Hassan, Vice Chancellor, Preston University, Mr. Muhammad Humayun Khan, Chief Manager, State Bank of Pakistan, SBP BSC (Bank) Peshawar, Mr. Rashid Qazi, Vice President, PICIC Commercial Bank Ltd. Peshawar, Mr. Badar Hussain, Area Head North, MCB Peshawar, Mr. Tabraiz Hassan Butt, Regional Business/Operational Chief Peshawar, Fellow Bankers, Distinguished Ladies and Gentlemen! First of all I would like to congratulate the administration of

    Words: 1875 - Pages: 8
  • Essay Banking

    Examination Paper of Banking & Financial Services Management IIBM Institute of Business Management Examination Paper MM.100 Principles & Practices of Banking Section A: Objective Type & Short Questions (30 Marks)    This section consists of Multiple Choice & Short Note type questions. Answer all the questions. Part One carries 1 mark each & Part Two carries 4 marks each. Part One: Multiple Choices: 1. Frequency of First Tranche Returns is: a. Weekly b. Monthly c. Monthly/quarterly d. Monthly/quarterly/half-yearly

    Words: 2584 - Pages: 11
  • Banking Essay

    Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime

    Words: 3877 - Pages: 16
  • Banking Essay

    on the other hand was overseen by the tripartite authorities who were | |made up of Her Majesty’s Treasury (HMT), Financial Services Authority (FSA) and the Bank of| |England (B of E). This system was one of the factors that contributed to the banking crisis| |as they did not act quickly and decisively. All three authorities seemed reliant on the | |other to take a course of action. | |

    Words: 1219 - Pages: 5
  • International Banking Essay

    1. Introduction 3 2.Company Profile- Brief Overview 3 2.1 Consumer banking: 6 3. Liquidity Risk: 7 3.1 Measuring Liquidity Risk –SCB 7 3.2 Measuring Credit Risk Exposure 10 3.3 Market Rate Risk 11 3.4 Value at Risk (VaR) 12 4. CAMEL RATING SYSTEM 13 1. Executive Summary International Banking can be defined as banking transactions crossing national boundaries. The activities involves like international lending; claims of domestic bank offices on foreign residents, claims of foreign

    Words: 5713 - Pages: 23
  • Investment Banking Essay

    Introduction to Investment Banking An investment bank is not a bank in the usual sense. It doesn't have checking or savings accounts, nor does it make auto or home loans. It is a bank in the general sense, in that it helps businesses, governments, and agencies to get financing from investors in a similar way that regular banks help these organizations get financing by lending money that the banks' customers have deposited in the banks' savings, checking, and money market accounts, and CDs. In other

    Words: 4022 - Pages: 17
  • Essay on Indian Banking

    Indian Banking – The engine for sustaining India’s growth agenda 5th ICC Banking Summit Kolkata 18 May 2013 Foreword Over the past couple of years, the Indian banking sector has displayed a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. In order to stimulate the economy and support growth of the banking sector, the Reserve Bank of India (RBI) adopted several policy measures. © 2013 KPMG, an Indian Registered

    Words: 7341 - Pages: 30
  • E-Banking Essay

    4th year 2nd Semester, under direct supervision of Mohammad Mizenur Rahman, Assistant Professor, Department of Business Administration, Shahjalal University of Science and Technology, Sylhet-3114. Assignment on: A Comparative Study on E-banking: A Study on Web information of Agrani Bank Ltd. & Mercantile Bank Ltd. Submitted to: Mohammad Mizenur Rahman Assistant Professor Department of Business Administration Shahjalal University of Science and Technology Sylhet-3114 Submitted

    Words: 3886 - Pages: 16
  • International Banking Essay example

    essay Course: «International Banking» Topic: «Comparative cross-border assessment of the Crédit Agricole S.A. and its affiliate in Ukraine performance» Written by: Victoria Shevchenko 1st year student of a Master’s Program Department of International Economics and Marketing Supervisor: PhD associate professor Volodymyr U. Shevchenko Kyiv-2014 Crédit Agricole Group is the leading financial partner to the French economy and one of the largest banking groups in Europe. It is the leading

    Words: 2069 - Pages: 9