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

Gender diversity, Three of the best companies in terms of their advancement...

Three of the best companies in terms of their advancement and development of woman are Motorola, Deloitte, and Touche and Bank of Montreal (See Nelson and Quick, 2007 p. 47). Avon

Discuss the qualities required by effective business leaders, Question: ...

Question: There is no one specific method of categorizing organization theories. Thus, it is generally accepted that: (a) The Type 1 theorists, also known as the classical s

Cost optimization, Have preventive maintenance( PM) in addition to breakdow...

Have preventive maintenance( PM) in addition to breakdown maintenance ( BM) optimal combination of the two is required for total cost minimization profitable preventive maintenan

What is line balancing, What is Line Balancing? Explain briefly. Line...

What is Line Balancing? Explain briefly. Line Balancing: It means balancing the line among the product lines or assembly lines. This aims at grouping facilities and work

Characteristics of business process reengineering, The major characteristic...

The major characteristics are: 1. Several jobs are combine into  one. 2. Employees make decisions ( empowerment of  employees.) decision making  becomes  part of  the job.

Consumer behaviour when making a purchase, Describe briefly the main stages...

Describe briefly the main stages included in the (rational) process of consumer behaviour when making a purchase.   Problem/Need recognition The purchasing process is a pro

Compare written and telephonic communication, QUESTION (a) Compare writ...

QUESTION (a) Compare written and telephonic communication in terms of their media richness. (b) The integration of computers into electronic systems has dramatically increas

Plant layout - product oriented vs. process oriented, Plant Layout: Product...

Plant Layout: Product Oriented Vs. Process Oriented The argument is never going to end and we don't claim either to solve the issue. The simplest explanation to choice of layou

Compare e-business to e-commerce, QUESTION (a) What are the factors tha...

QUESTION (a) What are the factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce? (b) Compare e-business to e-commer

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