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Explain liquidity risk and credit risk faced by banks and discuss how banks manage
these risks
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- Explain the main risks that banks face and discuss how banks manage these risks.(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 risksExplain the risks that banks expose themselves to in their day-to-day operations. Analyse how banks undertake Credit Risk management.
- Briefly explain how banks manage credit risk and interest rate risk.What are the liquidity ratios recommended to manage liquidity risk for a commercial bank?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. please
- What financial risks and non-financial risks affect customers in the banking sector concerning risk management?Outline the main financial risks exposed by commercial banks and their implications on the value of the bank?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?
- Explain in detail that how managers of financial institutions manage interest rate risk on Balance sheet.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?How does a bank reconcile between liquidity and profitability.
