Explain how a commercial bank normally derives its profits, Business Management

Assignment Help:

QUESTION

(a) Explain how a commercial bank normally derives its profits.

(b) The business of banking entails risk taking to achieve return on investment since profits are considered to be the reward for taking such risks.

Discuss the following key risks faced by banks and explain how these are managed or controlled by the institutions:

(i) Interest Rate Risk

(ii) Liquidity Risk

(iii) Operational Risk


Related Discussions:- Explain how a commercial bank normally derives its profits

Explain the theories of belbin and tuckman, Mr. Brian Smith is the 0fficer-...

Mr. Brian Smith is the 0fficer-in-charge of a group of 15 persons, all posted in the correspondence/registry services of the Texman Services, a company in the insurance business.

Business, Sam bought a leather corner sofa and chair from SCS Edinburgh for...

Sam bought a leather corner sofa and chair from SCS Edinburgh for £5,490 in July 2009. Less than a year later, she noticed that the sofa’s stitching had started to unravel and repo

Critically analyze the stages involved in conflict process, Question 1: ...

Question 1: (a) What is Leadership? (b) What are the three critical situational variables identified by Fiedler? If these are very favorable, what is the most effective styl

Mr, three ogarnizational attitudes

three ogarnizational attitudes

Value-focused view, Taken together, the organisation's external environment...

Taken together, the organisation's external environment, internal context and core purpose form the basis of the its value proposition - which is an articulation of the organisatio

What are the uses of control chart, What are the uses of control chart? ...

What are the uses of control chart? Control chart: It is a daily graphical presentation of the collected information. Therefore information pertains to the measured or ot

Causes of factors contributes to accidents in organization, Accidents  are ...

Accidents  are  usually the  results  of a combination of  factors each one of which  may very  from  situation. An  accident  does no have  a single cause but  multiplicity  of ca

Centralization of authority and responsibility, Ask question the principle ...

Ask question the principle of centralization and responsibility

Responsibilities of an organisation and strategies, a) Justify the purposes...

a) Justify the purposes of dissimalr types of organisation b) Explain the extent to which an organisation meets the objectives of disimilar stakeholders c) Describe the respo

Cash deposited in banks, QUESTION Part 1 Company X is evaluating ...

QUESTION Part 1 Company X is evaluating whether each of these items is a financial instrument and whether it should be accounted for under IAS 32 (1) Cash deposited in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd