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The Operation Of Bank Operation Essay

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Bank’s operation is like bloods, which as it facilitates liquidity across the financial system, and affects wider economy and market in the world. On one hand, a good operation is one of factors of becoming a successful bank, and let a bank make more profit and get high credit quality. On the other hand, bad operations for a bank will loss more customers, and increases a bank’s cost and budget. The present paper provides simple model of retail banking operation of 500 millions dollars. It based on a structure model of bank operation included by some financial accounts featuring households, corporates, and general bank. The operation volume of bank intermediation between household and corporates is shown to reflect structural parameters starts with $ 500 million. This operation model will spread three parts of bank, they are processing, quality, and control. The simple model of operation will provide some parameter to tell how a bank operation works.
Bank’s operation processing is set up assets account and liabilities account. Base on Asset= Liabilities +Equity. The bank begins $500 million assets, and $500 million liability. In asset accounts, the bank will provide some basic service in the beginning of operation, there is offering saving deposit, loan, card, checking account and credit lines (Peter S. and Sylvia C., 2011,6, 9-11). While the bank sets up the accounts, it should maintain all the accounts, and administer credit. Further more, the very last part in processing

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