Valuation of Bank Investments
Banks are the institutions that deals in money and its substitutes and provide other financial services. The main function of a bank is to act as an intermediary between money surplus units (lenders) and...
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Cash and Balances with RBI
Behaviour of Banks with regard to cash and BalancesTo understand the behaviour of banks with regard to cash and balances, first we need to understand what cash is how it is related with RESERVE...
Market Risk Management
IntroductionRisk may be defined as an exposure to uncertainty which may lead to a favorable or unfavorable outcome. Market risk refers to the risk of losses in the bank’s trading book due to movements...
Why do Banks Invest
What is Banking?Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals, and for earning profit they lend this money. But as the time passes by the...
Risks Involved in Investments
Risks in financial sector can be defined as the amount of uncertainty in the expectation of return for an investment made. To be precise, it can be said that when an investment is made,...
Credit Appraisal
INTRODUCTIONCredit appraisal means an investigation done by a bank before providing any advances, loans or project finance. Banks also check the financial, commercial & technical viability of the project proposed its funding pattern &...
Maturity Gap
Maturity OverviewThe distinction between the normal development of advantages and liabilities is called development hole. At the point when the development crevice is equivalent to zero progressions in investment rates will bring about equivalent...
Income Inequality
DEFINITION:What is an income? Income is the revenue that comes from wages salaries interest on investment, dividends and profits from selling items.Income inequality is a situation in the economy where there is not an...
Investment Portfolio of Banks
All commercial banks invest. What they do is that they take the money received from the regular banking transactions and put them in investments. To manage the funds properly they need an investment portfolio...
Duration based approach to Investments?
Introduction Duration Based Approach in investment depends on the investment goals and time frames, the amount of risks that can be taken and the income and tax structure. Investments on the basis of duration...