Economics Homework Help

Q1: Discuss the impact of the different types of risk on banking institutions and how do banks seek to manage these types of risk? Provide examples and ways to measure each type of risk.

i) Operational risk

ii) Interest rate risk

iii) Liquidity risk

iv) Off-Balance risk

v) Market risk

Q2: Critically examine the bank performance, with a particular reflection on the theoretical discussion.

Answers should cover:

i) Why should we care about bank performance?

ii) Explain how different stakeholders may impact on evaluate bank performance and why?

iii) How can bank performance be measured?

Q3:

a) Define and provide examples for Off-Balance Sheet Activities by banks.

b) Explain in details what is Securitisation and it role in banking activities?

Q4: Evaluate and analyse the management of credit risk in the context of lending function.

Answers should cover:

I) What is credit risk?

ii) How does bank manage credit risk?

iii) How does bank utilize the five Cs’ of credit analysis?