What is the nature of an off-balance-sheet activity? How does a bank benefit from such activities?
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a. What is the nature of an off-balance-sheet activity? How does a bank benefit from such activities?
b. Evaluate the importance of bank liquidity risk management.
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- What is the purpose of the bank reconciliation?Briefly discuss in detail each of the following questions. A. What are the key methods for measuring and managing liquidity risk?B. What are the three main methods for measuring and managing interest rate risk?C. Why is Enterprise Risk Management system important in a bank?D. What are the key objectives of bank regulation and supervision?Briefly discuss in detailed summary each of the following questions. A. What are the key methods for measuring and managing liquidity risk?B. What are the three main methods for measuring and managing interest rate risk?C. Why is Enterprise Risk Management system important in a bank?D. What are the key objectives of bank regulation and supervision?
- A. Apart from the information arising from your analysis what other information would you advise the bank to consider when making its decision?(a) Distinguish between the activities of retail and investment banks and discuss howthis has an impact on their approaches to risk management. (b) Explain liquidity risk and credit risk faced by banks and discuss how banks managethese risksMention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
- Discuss using figures how Bank Overdraft will affect the preparation of Bank Reconciliation Statement?Explain the risks that banks expose themselves to in their day-to-day operations. Analyse how banks undertake Credit Risk management.explain three important factors that account for challenges to liquidity risk management in a situation of a bank