Managing banks - never easy - uncertainty in the
Banks intermediation - risk management -assetliability management.
Risk management - spotting key risks - deciding risk
exposure should be or and identifying methods
Rationale for Regulating Banking/Financial
To protect consumer/investors
To check the abuse of oligopolistic and
To protect the public from criminal (illegal)
To deal with the effects of externalities
Disadvantage of Reg
Explain the business of banking
Identify the trend in modern banking.
WHAT IS A BANK?
A bank is a business that sells their services to
earn money. Banks must earn a profit to survive.
The services banks offer to customers ha
Identify an Islamic bank or a commercial bank that provides Islamic Banking services and
transactions of your preference and obtain its annual report (the annual report may be available
online). The annual report will allow you to relate
, the bank face the problem of
because the bank has less
information about the probability of default on a loan than the borrower.
2.All banks make money by having a gap between their maturities, that is,