This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Asset Management Bank asset management consists of 1. finding buyers who will pay high interest rates and are unlikely to default on their loans 2. purchasing securities with high returns and low risk 3. holding liquid assets with lower returns to satisfy reserve requirements without bearing huge costs Liability Management When they see an attractive loan possibility, banks actively seek out sources of funds by issuing negotiable CD's (can be sold) or by borrowing from other banks or corporations....
View Full Document
This note was uploaded on 11/22/2011 for the course FIN FIN1100 taught by Professor Bradrifkin during the Fall '09 term at Broward College.
- Fall '09
- Personal Finance