Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all its obligations properly and in accordance with applicable banking regulations. Banking activities consist of: 1. Ability to manage funds 2. Ability to channel funds to the community 3. The ability to fulfill obligations to other parties 4. Compliance with applicable regulations. Meanwhile, the definition of bank soundness is a form of qualitative assessment of various aspects that affect the condition or performance of a bank through quantitative and / or qualitative assessments of the factors of capital, asset quality, management, profitability, liquidity and sensitivity to market risk. Explain what you know about a bank's soundness rating factor!

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
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Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all its obligations properly and in accordance with applicable banking regulations. Banking activities consist of:
1. Ability to manage funds
2. Ability to channel funds to the community
3. The ability to fulfill obligations to other parties
4. Compliance with applicable regulations.
Meanwhile, the definition of bank soundness is a form of qualitative assessment of various aspects that affect the condition or performance of a bank through quantitative and / or qualitative assessments of the factors of capital, asset quality, management, profitability, liquidity and sensitivity to market risk.
Explain what you know about a bank's soundness rating factor!

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