understandig the working process in finance dacision making

May 28th, 2015
Studypool Tutor
Abilene Christian University
Price: $20 USD

Tutor description

The business of banking involves taking and managing risks. Lending, for example, involves the risk that the borrower will not pay back the loan as promised, and paying a fixed rate of interest on term deposits involves the risk that rates will drop, leaving the bank earning less on its investments than it is paying out on deposits. Risk is not unique to banking, of course; all types of companies engaged in international activities, for example, face the risk of unfavorable movements in exchange rates. But changes in banking and financial markets have increased the complexity of banking risks. And the position of banks in modern economies has made the management of banking risks ever more important to financial stability and economic growth.

Word Count: 4492
Showing Page: 1/9
Assignment (International Financial Management)Topic:Basel AccordsSubmitted to:Sir Najaf IqbalSubmitted by:Zubaria Aslam (BC07013)Class:B.Com (7th Sem.)Punjab University Gujranwala CampusBasel AccordWhat is Basel Accord?A set of agreements set by the Basel Committee on Bank Supervision (BCBS), which provides recommendations on banking regulations in regards to capital risk, market risk and operational risk. The purpose of the accordsis to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.How Basel Accords was formed in history?The business of banking involves taking and managing risks. Lending, for example, involves the risk that the borrower will not pay back the loan as promised, and paying a fixed rate of interest on term deposits involves the risk that rates will drop, leaving the bank earning less on its investments than it is paying out on deposits. Risk is not unique to banking, of course; all types of companies engaged in international activities, for example, face the risk of unfavorable movements in exchange rates. But changes in banking and financial markets have increased the complexity of banking risks. And the position of banks in modern economies has made the management of banking risks ever more important to financial stability and economic growth.In the United States, banks, in addition to their economic role in funding households and businesses, a

Review from student

Studypool Student
" Very Satisfied. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors