Description
Module 04 Course Project - Bank Credit Risks - cont CitiBank. grading rubric noted at bottom. Build off other three section
For this phase of the course project, you will conduct additional research for the bank you chose as the subject of your project. Write the next section of your risk management plan in which you discuss credit risk in relation to retail banking. Be sure to include a discussion of retail banking services and the risks associate with providing consumer credit individuals and institutions.
In this paper, please address the following questions:
- What are the credit risks faced by retail banking?
- How are credit risks associated with individuals different from credit risks associated with institutions?
- What retail banking services does your bank provide to individuals?
- What retail banking services does your bank provide to institutions?
- How does your bank assess credit risks and does your bank have an effective plan for managing and mitigating these risks? Explain.
Requirements
APA (two spaces after period) Min 4 pages
|
Submit your completed assignment to the drop box below. Please check the Course Calendar for specific due dates.
Module 04 Course Project - Bank Credit Risks
Scoring Rubric:
Criteria | Weight |
Discussed the credit risks faced by retail banking from individuals and businesses- 10 pts for each risk (in detail) | 30 |
Identified and discussed retail banking services provided by the bank to individuals | 15 |
Identified and discussed retail banking services provided by the bank to businesses and other institutions | 15 |
Explained how the bank assesses credit risks and evaluated the plan for managing and mitigating these risks | 30 |
The assignment met the minimum page length of 3 pages, demonstrated the use of library resources, and demonstrated proper APA mechanics | 10 |
Total | 100 |
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Explanation & Answer
Hi,Find attached the completed work.Feel free to ask for any clarification or editing if need be.Looking forward to working with you in the future.Thank you.
Running head: RISK MANAGEMENT PLAN
Bank Credit Risks – Citibank
Student’s Name
Professor’s Name
Course Title
Date
RISK MANAGEMENT PLAN
2
Bank Credit Risks
As earlier highlighted in this risk management plan, credit risk is the risk associated with
failure of a borrower to repay a loan. Since the bank assumes the credit risk, all loans are paid with
an interest. Credit risks are the most common risks faced by financial institutions in the industry.
Citibank is no exception. Retail banking, also referred to as consumer banking by several
institutions is a situation that facilitates access to the financial services of a bank by the consumers
from their branches which may be located in different locations. Once a bank has issued a loan, it
assumes credit risk (Santomero, 1997). For this reason, it is imperative that I delve into the credit
risks that are associated with retail banking with a special focus on Citibank.
Credit Risks Faced by Retail Banking
In retail banking, banks offer services to individual customers as opposed to corporations,
companies and other groups of people. The services offered under retail banking are the ones
responsible for exposing the bank to various banking risks. Some of these services include
residential mortgages, business credit cards, debit cards, financial investment plans, retirement
plans, wealth management, saving accounts and checking transactions among many other services
(Saunders & Cornett, 2014). Retail banking is faced by a number of credit risks which management
of financial institutions works day and night to ensure that these risks are ...