banking book and trading book? The banking book is the bank’s portfolio of retail-related assets such as commercial loans‚ retail loans‚ mortgages and retail deposits. The trading book is the bank’s portfolio of tradable securities. How does a bank make money through the banking book? By charging a higher rate of interest on loans than on deposits. List and briefly describe the different types of risk a bank faces. * Credit risk: The risk of loss due to a counterparty failure * Market risk:
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Introduction In financial accounting‚ a cash flow statement‚ also known as statement of cash flows or funds flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents‚ and breaks the analysis down to operating‚ investing‚ and financing activities. The primary purpose of a statement of cash flows is to provide relevant information about the cash receipts and cash payments of an enterprise during a period. Essentially‚ the cash
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economy. The pass through of changes in policy interest rates to other short-term money market rates is quick. The pass through to commercial bank interest rates is slow but complete. This partly reflects the large proportion of longmaturing time deposits in commercial banksÕ funding base which delays the impact of monetary policy changes on banksÕ cost of funds and on lending rates. The transmission to the real sector is relatively strong and broadly in line with other countries. On average‚ a one
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review reports on liquidity risk‚ market risk and capital management as covered in this report. 2. To identify balance sheet management issues like balance sheet gaps‚ interest rate gap/profiles etc. that are leading to under-performance. 3. To review deposit-pricing strategy for the local market. 4. Review liquidity contingency plan for the bank. PART A EXECUTIVE SUMMARY. ....................................................................................................4 PURPOSE/METHODOLOGY/LIMITATIONS/DISCLAIMERS
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corresponded next year. Cost of goods sold is recognised at 50% of the sales. (a) Year-end liability and expenses for the year: Liabilities: $10‚000 Expenses: $30‚000 (b) Journal entries: Dr Cash $70‚000 Cr Unearned Revenue/Deposit $70‚000 Dr Unearned Revenue/Deposit $60‚000 Cr Sales Revenue $60‚000 Dr COGS $30‚000 Cr Inventory $30‚000 (3) CoinRich Ltd.’s has a warranty plan. The estimated warranty liability is 10% of cost of goods sold‚ and cost of goods sold for this year was $30‚000
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Dakota. Dan Dority‚ the company’s geologist‚ has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years‚ after which the gold would be completely mined. Dan had taken an estimate of the gold deposits to Alma Garrett‚ the company’s financial officer. Alma has also been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Alma has used the estimates provided by Dan
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Convertibility of rupee Convertibility can be related as the extent to which a country’s regulations allow free flow of money into and outside the country. For instance‚ in the case of India till 1990‚ one had to get permission from the Government or RBI as the case may be to procure foreign currency‚ say US Dollars‚ for any purpose. Be it import of raw material‚ travel abroad‚ procuring books or paying fees for a ward that pursues higher studies abroad. Similarly‚ any exporter who exports
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Treasury. c. banks‚ depositors‚ the central bank‚ and borrowers. d. banks‚ depositors‚ the central bank‚ and the U.S. Treasury. Correct Marks for this submission: 1/1. Question 2 Marks: 1 If a bank has excess reserves of $10‚000 and demand deposit liabilities of $80‚000‚ and if the reserve requirement is 20 percent‚ then the bank has actual reserves of Choose one answer. a. $16‚000. b. $20‚000. c. $36‚000. d. $26‚000. Correct Marks for this submission: 1/1. Question 3 Marks:
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CHAPTER ONE INTRODUCTION 1. Background of the Study For having sufficient amount of capital‚ cash is the most important source of every aspect of investment. To improve the performance of the business as well as to introduce new business opportunity in the organization cash is very important. Since cash is the most powerful working capital component‚ the collection and payment of cash must be studied carefully. Therefore‚ this project tries to show how cash is controlled and managed by taking
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Ref http://www.planware.org/workingcapital.htm http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-assets.asp#axzz2IlyBIIT7 http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp#axzz2IlyBIIT7 Morris‚ A(2009) of KPMG http://www.accountingnet.ie/in_practice/Reducing_Working_Capital_Through_Managing_Debtors_-_Part_II.php Mehar‚ A. 2001. Impacts of Equity Financing on Liquidity Position of a
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