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Central bank is the main bank of any country. It deals with the money supply, inflation deflation and issuance of currency. Every country has only one central bank which is called the head of all other commercial banks. The currency which central bank issue is acceptable in whole country; there would be no other currency acceptable. It also controls the interest rate.
Here are some names of the central banks of different countries: Federal Reserve System (USA), State Bank of Pakistan (Pakistan), Central Bank of India (India), Reserve Bank of Australia (Australia) etc.
In United States financing is divided in to this percentage; 57% financing comes from personal contribution; 3.5% comes from friends and family; 12.7% comes from bank loans, lines of credit, working capital loans and SBA guaranteed loans; 11.71% comes from asset backed debt; and 14.4% entrepreneur use no money at all to finance their business.
Banking evolution in United States
The evolution of banking in America starts from 1791. The initial stage of banking is from 1791-1863. The first bank was established in 1791 and was empowered till 1811. And after that in 1816 the second bank was established and that bank was empowered till 1836. In early ages of banking system there was no specific rules, and there was also no specific currency of the nation, every bank had its own currency and there was a great competition between banks. For that they didn't accept others' currency. And these banks issued such currency which was acceptable by all banks.
In 1863 there was a congress passed whose name was "The National Bank Act". This act was empowered from 1863-1913. The act defines some new rules of banking at that time. They introduce the proper loan providing system, which was suitable at that time. And it also stopped different currencies in a nation and issued a single currency which was acceptable by everyone. There was also a tax system introduced, a 10% tax is charged on every state bank note.
Federal Reserve System (1913)
Federal Reserve System is the name of the central bank of United States. It was established in December 23, 1913 in the act of Federal Reserve Act. There are 12 Federal Reserve Banks which are supervised by the board of Federal Reserve. The planning of making the Federal Reserve System was started in 1907. With the passage of time it was established in 1913. Over time, the rules and responsibilities of the Federal Reserve System have extended and the improvements have occurred in the structure of the Federal Reserve System. Before 1913 the major problem was depression due to not proper allocation of money supply and control of the currency value, there are also great problems regarding money, so this act leads to change the situation and removes all the problems and depressions regarding money. And after that there was a proper system take place.
Activities performed by the banks of United States
United States banks are the world's largest and most innovative banks. Their research work is very good and effective. They first observe other banks of the world, they watch their activities which they perform and then if it is effective then they adopt such strategies. And for that research they also plan what to do in the future and how to change their performance.
As the United States economy is the largest economy of the world, there is no wonder that the banks of the United States gained substantial importance in the global financial market. The banks ok United States offer vast range of services and products globally. And ranging from a single person to small business, large corporations and institutional banking, With the most advance technology (online services) available. You can access all the banks of United States from all over the world. If your account is in any bank of the United States and you are in any other country, it is quite easy to handle your account from there. You can easily take transaction from your account.
The activities which United States banks perform are:
Individual Banking Services of Banks in USA
Banking solutionsÂ forÂ U.S.Â banksÂ toÂ thoseÂ inÂ theÂ consumerÂ bank,Â day after dayÂ to meet.Â CheckÂ productsÂ and easeÂ ofÂ useÂ andÂ freeÂ ATMÂ /debitÂ card servicesÂ asÂ online bankingÂ andÂ online paymentÂ comes withÂ a setÂ ofÂ additional features,Â such asÂ depositsÂ withÂ the monthly statementÂ isÂ less open,Â andÂ many others.
American banks' loan products are accessible in the forms of home equity loans, car loans, and personal loans. Certificates of deposit and passbook savings are the two most favored forms of savings products.
Mortgage Services of US Banks
U.S. banksÂ offerÂ variousÂ real estate services.Â Planning ofÂ services to treat aÂ varietyÂ ofÂ customer needsÂ mortgage.Â In addition to providingÂ aÂ standardÂ real estateÂ financingÂ andÂ U.S. banksÂ areÂ also mortgageÂ calculatorsÂ availableÂ toÂ assist youÂ in calculatingÂ the payment schedule,Â monthly paymentsÂ and the maximumÂ loanÂ and charges,Â and more.
Mortgage-lineÂ servicesÂ inÂ the United StatesÂ to assistÂ customersÂ in choosingÂ theÂ best deal.Â They also haveÂ theÂ propertyÂ buying process is veryÂ simpleÂ and hassle free.
Business Banking Services of Banks in the USA
U.S. banks' most recentÂ commercial banking services toÂ corporate clientsÂ waiting.Â AuditingÂ companyÂ to takeÂ careÂ ofÂ financial needs of allÂ types ofÂ businesses.Â Banking productsÂ throughÂ syndicated loans andÂ commercial loansÂ andÂ construction loans.Â CommercialÂ lending business process,Â andÂ equipment,Â and commercial buildings availableÂ for purchase.
Other Products and Services of Banks in USA
AmongÂ theÂ banking services and products,Â and agricultural products,Â andÂ bank loans,Â current accountsÂ ofÂ the United StatesÂ is theÂ previousÂ value.Â Credits forÂ the purchaseÂ ofÂ agricultural machineryÂ andÂ livestock,Â and real estate.Â CheckingÂ accounts,Â low priceÂ andÂ easyÂ toÂ use.
Internet Banking Solutions of Banks in the USA
The internet banking solutions of the banks in the USA approach with a number of services like checking balance, funds transfer, and bill payment at any point of time.
Categories of banks
There are two main categories of banks in United States and these are federally chartered national banks and state-chartered banks.
Types of banks
Thrift banks, Commercial Bank, Industrial Bank, SavingsÂ Bank, International Bank
The Largest Banks in the US
The largest banks in the US rank by deposits, according to FDIC, are:
Bank of America, JP Morgan Chase Bank, Wachovia Bank, Citibank, Washington Mutual Bank, SunTrust Bank, US Bank, Regions Bank, Branch Banking and Trust Company, National City Bank, HSBC Bank USA, World Savings Banks, Countrywide Bank, PNC Bank, Keybank, ING Bank, Merrill Lynch Bank USA, Sovereign Bank, Comerica Bank, Union Bank of California
A bar chart shows 4,893 banks or savings institutions have more than $100 million in assets; 3,517 have $100 to $500 million; 859 have $500 million to $5 billion; 150 have $5 to $50 billion; and 22 have more than $50 billion.Â
4883+3517+859+150+50=9459 banks with $100 million or more.
The FDIC bank data shows that there are 8,430 commercialÂ banksÂ as of August 22, 2008.
Top ten banks
Bank of America, its total deposits are 817,989,321, no. of offices is 6,173 and its main head office is in North Carolina.
JPMorgan Chase Bank, its total deposits are 618,124,000, no. of offices is 5,229 and its main head office is in Ohio.
Wachovia Bank, its total deposits are 394,189,004, no. of offices is 3,338 and its main head office is in North Carolina.
Â Wells Fargo Bank, its total deposits are 325,417,000, no. of offices is 3,429 and its main head office is in South Dakota.
Citibank, its total deposits are 265,947,879, no. of offices is 1,046 and its main head office is in Nevada.
U.S. Bank, its total deposits are 151,902,585, no. of offices is 2,902 and its main head office is in Ohio.
SunTrust Bank, its total deposits are 118,532,355, no. of offices is 1,747 and its main head office is in Georgia.
National City Bank, its total deposits are 101,141,375, no. of offices is 1,551 and its main head office is in Ohio.
Branch Banking and Trust Company, its total deposits are 93,753,403, no. of offices is 1,505 and its main head office is in North Carolina.
Regions Bank, its total deposits are 93,701,749, no. of offices is 1,882 and its main head office is in Alabama.
Activities of the Bank
AsÂ many ofÂ youÂ know,Â theÂ World Bank,Â aÂ multilateral institution,Â the reserves of theÂ central bankÂ is notÂ in arbitration,Â butÂ alsoÂ central banksÂ andÂ otherÂ financialÂ andÂ monetaryÂ stabilityÂ ofÂ financial agents toÂ promoteÂ an interestÂ inÂ an umbrella organizationÂ of performance.InÂ thisÂ context,Â theÂ activitiesÂ ofÂ banksÂ duringÂ theÂ lastÂ fiscal year,Â then scoredÂ diversity.
Central banks,Â theirÂ customers'moneyÂ inÂ cashÂ alwaysÂ firstÂ bankguidelines,Â security, privacy,Â and areÂ makingÂ aÂ comeback.Â To achieveÂ theseÂ objectives, theÂ Bank's strategyÂ to provideÂ customers apply theÂ optionsÂ to returnÂ the liquid componentsÂ of the investment portfolioÂ ofÂ the central bankÂ areÂ comparable inÂ qualityÂ toÂ the collection,Â and carefulÂ monitoringÂ andÂ managementÂ ofÂ credit risk andÂ marketÂ provideÂ the Central Bank.
Under this strategy, the bank approximately just under 90 billion dollars over the past 10 years on its balance sheet was an increase in the period 1990-1991 is over $ 20 billion for fiscal 2001Â / 02 At the end of $ 175 billion, an increase in the coming year.Â
Medium-termÂ instrumentsÂ in recentÂ yearsÂ are a majorÂ attractionÂ for the moneyÂ the central bank.Â GrowthÂ inÂ lateÂ 1998Â withÂ the purchase agreementÂ datedÂ at the timeÂ ofÂ constructionÂ MTIsÂ the endÂ ofÂ 2001, theÂ deviceÂ for aÂ recordÂ 48 billionÂ U.S. dollarsÂ toÂ meet customer demand.Â However,Â higherÂ expectationsÂ onÂ interest ratesÂ inÂ early2002,Â many central banks, theÂ durationÂ of its portfolio,Â as well asÂ the Bank forÂ International SettlementsÂ is small.Â AsÂ a result, aÂ small book feelsÂ Hungary.
InÂ addition, because ofÂ central bank reserves,Â aÂ number of other financial services to theirÂ customersÂ bank offers.Â The central banks ofÂ short-term loans,Â usually secured,Â as well asÂ servicesÂ including foreign exchangeÂ and gold.Â ServicesÂ in recentÂ yearsÂ haveÂ enabled theÂ managementÂ of assetsÂ of theÂ bank,Â whichÂ formed anÂ important market areaÂ is possible.Â ManyÂ centralÂ bank governorÂ and currently managesÂ the lossÂ ofÂ international rules of theÂ Bank.
TheÂ WorldÂ Bank,Â theÂ central bank reservesÂ to maintainÂ itsÂ positionÂ in the arbitration,Â toÂ the changingÂ needs of ourÂ customers will needÂ to be answered.Â TheÂ flexibility ofÂ performanceÂ andÂ securityÂ with a combinationÂ ofÂ providingÂ attractiveÂ investment instrumentsÂ includeÂ a continuedÂ focus.Â It also callsÂ for theÂ exchange ofÂ technical know-how.Â LastÂ butÂ notÂ least, commitmentÂ toÂ excellenceÂ in credit riskÂ and liquidity risk, market riskÂ andÂ operational riskÂ byÂ careful monitoring to support.Â
Analytical and statistical contributions of the Bank
A bank resourceÂ ofÂ primary energyÂ is anotherÂ area,Â andÂ direct service deliveryÂ recordsÂ and statistics.Â AdvantageÂ ofÂ the bank's activitiesÂ inÂ thisÂ areaÂ deservesÂ special mention.Â OneÂ increasingly supported byÂ theÂ Bank's participationÂ inÂ meetingsÂ ofÂ the global nature.Â Others,Â which I willÂ discussÂ inÂ aÂ detailed analysisÂ in support ofÂ international cooperation isÂ theÂ drivingÂ force.
Whereas 15 years ago the meetings under the auspices of the BIS brought together the central banks of the most important industrial countries, today's meetings are almost uniformly marked by the geographical diversity of participants. In addition, the number of meetings taking place in all regions of the world has expanded greatly.
HeÂ sawÂ regularÂ bimonthly meetingsÂ of theÂ membersÂ of central banksÂ inÂ the courseÂ ofÂ representation can beÂ extended.Â BankÂ for International SettlementsÂ is alsoÂ aÂ featureÂ of the meetingsÂ of governingÂ others.Â For example,Â theÂ nowÂ matureÂ economies,Â theCentralÂ BankÂ ofÂ annualÂ monetary policyÂ with representatives of working groupsÂ organizedÂ by them.Â And now,Â Africa,Â Asia andÂ Central andÂ Eastern EuropeÂ andÂ Latin AmericaÂ seniorÂ central bank officialsÂ heldÂ separate meetings.Â ForÂ global cooperationÂ to proveÂ aÂ fertile areaÂ is the issueÂ ofÂ governanceÂ ofÂ the central bank. Countries withÂ aÂ diverse groupÂ ofÂ eightÂ central bankersÂ to control theÂ Central BankÂ directÂ bankingÂ networkÂ now extendsÂ to 40Â inÂ the central partÂ of the world.Â IÂ once againÂ thatÂ notÂ onlyÂ theÂ Bank for International Settlements, the shareholders ofÂ theseÂ efforts, but other central banksÂ such asÂ stressÂ involved, eitherÂ through direct participationÂ orÂ would,Â if possible, toÂ discuss aÂ number of publicationsÂ throughÂ theÂ contentsÂ of theÂ CommunicationÂ is not.
Because ofÂ theirÂ servicesÂ followingÂ moreÂ comprehensiveÂ and analyticalÂ and statisticalÂ activitiesÂ of the bank,Â focusingÂ onÂ financial stability issuesÂ anotherÂ characteristicÂ of sharpness.Â TheÂ weakness we'veÂ seenÂ in recentÂ years in theÂ financial markets wasÂ reflected on theÂ nature.Â The responsibility for allÂ parts of theÂ worldÂ financial officialsÂ to establishÂ theÂ identity of the presidentÂ will beÂ to maintain financial stability.Â ItÂ mainlyÂ coversÂ theÂ centralÂ banks.Â ButÂ also to otherÂ interested partiesÂ - supervisorsÂ and fiscal authoritiesÂ and the private sectorÂ -Â whichÂ commitsÂ theÂ World BankÂ isÂ closelyÂ involved inÂ the debateÂ on financial stabilityÂ required.
InÂ thisÂ context,Â the BankÂ forÂ International SettlementsÂ andÂ the issues ofÂ financial stability of aÂ large-scaleÂ meetingsÂ financedÂ by theÂ BankÂ deals withÂ researchÂ conductedÂ onÂ selected topics. Potential weaknessesÂ in the financial markets,Â includingÂ regular monitoring.Â Financial markets andÂ growth performance,Â and fair valueÂ accountingÂ for financial analysisÂ ofÂ institutions,Â theÂ range campusÂ wide rangeÂ of topicsÂ suchÂ asÂ riskÂ management,Â andÂ over timeÂ toÂ measureÂ changes in riskÂ areÂ alsoÂ included.Â Financial stability,Â monetaryÂ stability issuesÂ inÂ mindÂ can meanÂ notÂ ignore.TheÂ secondÂ concernÂ ofÂ theÂ centralÂ bankÂ toÂ implementÂ monetary policyÂ operational procedures andÂ ways of addressingÂ the themes, andÂ instrumentsÂ forÂ managingÂ exchange ratesÂ andÂ central bank policies have anÂ impactÂ onÂ capital flows.
Finally, an important and growing aspect of the Bank's activities in the analytical area has been the dissemination of the outcome of the Bank's cooperative efforts and research, and of the initiatives undertaken by the various committees hosted by the BIS.
InstituteÂ forÂ financialÂ stabilityÂ was, whichÂ wasÂ createdÂ three years agoÂ toÂ strengthenÂ control measuresÂ onÂ best practicesÂ globallyÂ and in allÂ countriesÂ to disseminateÂ theÂ latestÂ informationÂ on issuesÂ of banking regulationÂ andÂ worldÂ observersÂ in allÂ regionsÂ of the heartÂ of effortsÂ toÂ promoteÂ understandingÂ betweenÂ theÂ full supportsÂ ofÂ the implementation.Â FocusÂ onÂ the design andÂ implementationÂ of regional seminars and workshops,Â and nearlyÂ 150Â countriesÂ through moreÂ than 1,400Â observersÂ wereÂ last yearÂ on aÂ wideÂ rangeÂ ofÂ topics in-depth knowledgeÂ of supervisory principlesÂ isÂ ableÂ to achieve. DuringÂ the current year,Â FSIÂ increaseÂ the numberÂ ofÂ eventsÂ thatÂ the AssociationÂ of Insurance SupervisorsÂ with the International AssociationÂ of Insurance SupervisorsÂ supportsÂ training coursesÂ for theÂ number.
Activities of the committees
There are aÂ numberÂ ofÂ committeesÂ andÂ theÂ secretariatÂ atÂ the Bank forÂ International Settlements.Â BeyondÂ theÂ provisionÂ of banking operationsÂ andÂ analytical services,Â and supportingÂ the activitiesÂ of theseÂ committeesÂ ofÂ central banksÂ and supervisory authoritiesÂ ofÂ the World BankÂ andÂ otherÂ financial support forÂ theÂ workÂ of theÂ third column.
The initialÂ setÂ ofÂ committeesÂ thatÂ I wouldÂ mentionÂ in thisÂ contextÂ the reports to theÂ G10Â governors.Â TheseÂ includeÂ theÂ BaselÂ Committee on Banking Supervision, chairedÂ McDonoughÂ PresidentÂ Federal ReserveÂ Bank ofÂ NewÂ York, and Commission ofÂ theÂ globalÂ financial system, chairedÂ byÂ theÂ DeputyÂ GovernorÂ YamaguchiÂ BankÂ of Japan,Â and theÂ Committee onÂ PaymentÂ andÂ SettlementÂ Systems, chairedÂ by LordÂ PadovaÂ Schioppa,Â memberÂ ofÂ the Executive Council ofÂ theÂ European Central Bank. EachÂ committeeÂ focusesonÂ buildingÂ aÂ criticalÂ massÂ ofÂ financialÂ system worksÂ wellÂ -Â security settingsÂ and effectiveÂ functioningÂ ofÂ marketsÂ and powerÂ systems and draws itsÂ membersÂ fromÂ theÂ nationalÂ capitals. Proceed with theÂ revision ofÂ theÂ BasleÂ Capital AccordÂ ofÂ the Basel CommitteeÂ grantÂ activityÂ lastÂ yearÂ and willÂ no doubtÂ continue toÂ do so inÂ theÂ comingÂ months. LetÂ meÂ focusÂ onÂ three major factors in the development of thisÂ newÂ regime.
ThisÂ mustÂ beÂ addressed first,Â withÂ theÂ right incentivesÂ forÂ banksÂ to measureÂ theirÂ risks, aÂ comprehensive multilateral framework, minimum capitalÂ managementÂ basedÂ onÂ threeÂ mutually reinforcing pillars,Â andÂ theÂ discipline ofÂ marketÂ monitoringÂ andÂ surveillanceÂ isnecessaryÂ .Â ItÂ isÂ undeniableÂ thatÂ more sophisticated methods provided byÂ theÂ CommissionÂ isÂ likelyÂ toÂ be complex.Â However,Â this simple solutionÂ basedÂ onÂ theÂ prudential supervision ofÂ the industry forÂ advanced, complexÂ andÂ innovativeÂ canÂ beÂ a bitÂ naive.Â Also,Â you doÂ not haveÂ banksÂ inÂ emerging marketsÂ will beÂ forcedÂ toÂ adopt more sophisticated methods.Â CommissionÂ to ensureÂ theÂ qualityÂ of the final frame,Â inÂ the monthsÂ toÂ come and doÂ an exhaustive studyÂ of theÂ impactÂ of the newÂ agreement.
Secondly, theÂ agreementÂ newÂ capitalÂ and itsÂ relevanceÂ forÂ the developmentÂ and acceptance,Â andÂ the CommitteeÂ were keenÂ to ensure thatÂ MemberÂ StatesÂ notÂ to consultÂ withÂ aÂ wideÂ rangeÂ of privateÂ sector.Â TheÂ rangeÂ on aÂ variety ofÂ otherÂ surveillance systems in additionÂ toÂ effortsÂ by the Commission.
Thirdly, theÂ CommitteeÂ for the implementationÂ ofÂ aÂ new agreement anÂ importantÂ stepÂ toÂ focusÂ on theÂ planningÂ began.Â To guideÂ and support theÂ effortsÂ ofÂ supervisorsÂ at this stage,Â the implementation teamÂ was formedÂ toÂ deal with.Â ChannelsÂ of communicationÂ and information exchangeÂ to ensure thatÂ evenÂ non-membersÂ can contributeÂ to theÂ importantÂ issueÂ of implementation.
Promote financial stability, asÂ has beenÂ at the forefront ofÂ the activitiesÂ of theÂ global financial system.Â AÂ lotÂ ofÂ work,Â the last yearÂ in terms ofÂ narrowing theÂ interaction betweenÂ theÂ realÂ economyÂ and financial marketsÂ andÂ aÂ series ofÂ unusual eventsÂ that happened under reviewÂ focusesÂ on the analysisÂ of theÂ market response.Â In performing these functions, theÂ Committee andÂ otherÂ major emerging market economies, theÂ central bankÂ is basedÂ onÂ expert knowledgeÂ ofÂ seniorÂ executives.
Role of the Central Bank
Functions ofÂ Central Bank:
The important functions of Central Banks are as follows:-
1-Sole right of note issue
The Central Bank in every country, now, has the monopoly note issue. The issue of notes is governed by certain regulation which is enforced by the state.
2-Banker to the state
A Central Bank acts as a banker to the government. It holdsÂ cashÂ balances of the government free of interest.
3- Banker's bank.
The central bank acts as a banker to the commercial banks.
4-Banker's clearing house
The Central Bank acts as a clearing house for the settlement of mutual obligations of different commercial banks. If a difference exists, it is paid by aÂ chequeÂ drawn on the banks accounts carried at the Central Bank.
5-Lendor to the last resort
The Central Bank helps the member banks in times of crisis.
The Central Banks act as financial agents for the government. It is an agent for the government in purchasing and selling of gold andÂ foreign exchange.
7-Effective monetary policy
The aim of the government is to create employment in the country, resist undue inflation and achieve a favorable balance of payment.
8- External functions
The Central Bank also perform a number of external functions.
Ownership of Banking Institutions
No there is not specific government lending institutions who owns the banking institutions in United States.
UnitedÂ States,Â known asÂ aÂ bank holding companyÂ BankÂ HoldingCompanyÂ ActÂ ofÂ 1956Â onÂ aÂ largeÂ scaleÂ inÂ anyÂ companyÂ that controls theÂ WestÂ asÂ fixed.Â ItÂ is incumbentÂ onÂ allÂ bank holding companiesÂ in the U.S.Â Federal Reserve SystemÂ to recordÂ withÂ theÂ BoardÂ of Governors.Â FederalÂ ReserveÂ BoardÂ (BoardÂ of Governors,Â underresearchÂ (12Â ptÂ ibidÂ 225.)Â OrganizeÂ activitiesÂ ofÂ bank holding company,Â such asÂ settingÂ capital standards,Â and approvalÂ of mergersÂ andÂ acquisitionsÂ to monitorÂ andÂ toÂ observeÂ the operationsofÂ theseÂ enterprisesÂ AuthorityÂ isÂ responsible.Â AppliesÂ evenÂ toÂ thebank holding companyÂ wholly ownedÂ byÂ Chief ControllerÂ ofÂ the CurrencyÂ orÂ the Federal DepositÂ InsuranceÂ CompanyÂ mayÂ be subject toÂ surveillance.
Banking Risk and Crisis
LiquidityÂ of theÂ banking systemÂ inÂ the United StatesÂ 2007-2010 financial crisisÂ causedÂ by theÂ inability of.Â TheÂ collapseÂ ofÂ major financial institutions, national governments andÂ the bailoutÂ of banks andÂ stock marketsÂ worldwideÂ haveÂ ledÂ to stability.Â In many areas, theÂ housing marketÂ hasÂ suffered,Â evictions,Â foreclosuresÂ and vacanciesÂ forÂ an extendedÂ period, causing numerous.Â Considered byÂ many economistsÂ that theÂ worstÂ since theÂ Great DepressionÂ of the 1930Â financial crisis.Â FailureÂ ofÂ largeÂ businesses,Â consumers andÂ wealthÂ estimated atÂ billions ofÂ dollarsÂ the United States contributed toÂ theÂ decline,Â andÂ significantÂ financial commitmentsÂ by governments,Â and a significant declineÂ in economic activity.Â Were severalÂ reasonsÂ given by various expertsÂ withÂ weightsÂ is proposed. AllÂ basedÂ onÂ marketÂ andÂ regulatory solutionsÂ have been implemented orÂ are underÂ consideration,Â whileÂ significantÂ risksÂ for the global economyÂ in theÂ periodÂ 2010-2011.
Necessary for theÂ implementationÂ ofÂ risk managementÂ procedures thatÂ shouldÂ be in placeÂ areÂ adequate?Â InÂ short,Â allÂ theÂ differentÂ types ofÂ risk reductionÂ and managementÂ areÂ the way,Â and how theyÂ apply to everyÂ areaÂ ofÂ risk controlsÂ are?Â ToÂ theseÂ questions, we now proceed.Â Big companies, aÂ view thatÂ large-scaleÂ risk management systemsÂ used by theÂ studyÂ appearsÂ afterÂ aÂ review ofÂ procedures. Banking companyÂ managementÂ toÂ implementÂ risk management systemsÂ isÂ basedÂ onÂ aÂ seriesÂ ofÂ steps.Â Standards and Reports, position limits or rules, investment guidelines or strategies, incentive contracts and compensation.
InÂ general, theseÂ toolsÂ ofÂ risk measurement,Â and establish proceduresÂ toÂ manageÂ theseÂ risksÂ to acceptable levelsÂ in theÂ range of individual items,Â andÂ to encourage decision makersÂ in a manner consistentÂ withÂ corporate goalsÂ andÂ objectivesÂ toÂ manageÂ risk. DiscoverÂ how to achieveÂ theseÂ goalsÂ theÂ basic techniquesÂ ofÂ risk managementÂ inÂ each ofÂ theseÂ four parts,Â we askedÂ eachÂ partÂ of the process.Â InÂ PartÂ IV, we applyÂ theseÂ techniques toÂ identifyÂ risks toÂ the banking communityÂ toÂ manageÂ to illustrateÂ each.
Standards and Reports
RiskÂ management techniquesÂ before theseÂ twoÂ conceptually differentÂ activities, namely, includingÂ setting standardsÂ and financial reporting.Â TheyÂ areÂ presentedÂ together becauseÂ they areÂ aÂ sign of dangerÂ in anyÂ systemÂ areÂ qua non.Â Underwriting standards,Â risk assessment,Â and auditingÂ standardsÂ andÂ risk managementÂ and controlÂ of allÂ traditional instruments.Â Conformity assessmentÂ and classification ofÂ riskÂ forÂ differentÂ typesÂ ofÂ risksÂ inÂ theÂ portfolio is necessary toÂ understand,Â andÂ to what extentÂ shouldÂ absorbÂ these risksÂ orÂ less.
IntegrationÂ ofÂ financial reportsÂ isÂ the next item.Â ItÂ is clear thatÂ the external auditÂ andÂ regulatory reporting, evaluationÂ andÂ rating agency isÂ necessaryÂ forÂ active tradersÂ ofÂ qualityÂ and levelÂ of business risk measure.Â TheseÂ longstanding relationshipsÂ haveÂ beenÂ unitedÂ for betterÂ orÂ worse. However,Â theÂ needÂ forÂ public accountabilityÂ and asset qualityÂ andÂ risk managementÂ information on theÂ status required toÂ obtainÂ audited financial statementsÂ goesÂ beyond.Â And theseÂ internal reportsÂ and aÂ dailyÂ or weeklyÂ reportsÂ andÂ repeated reportsÂ over the sameÂ periodÂ of consolidation, needÂ toÂ generally accept accounting principlesÂ insteadÂ ofÂ quarterly.
Position Limits and Rules
Internal controlÂ toÂ manageÂ theÂ stateÂ secondÂ methodÂ is toÂ use the latest rangeÂ andÂ /Â or minimum standardsÂ for participation.Â InÂ the latterÂ context,Â theÂ riskÂ that theseÂ assetsÂ or to arrange interviews withÂ quality standardsÂ pre-definedÂ is limited.Â Thus,Â evenÂ thoseÂ who are qualified investments,Â and findÂ theÂ range ofÂ interview performance,Â andÂ credit guarantee,Â theÂ riskÂ of differentÂ types and concentrationsÂ to normal.Â AlthoughÂ expensive toÂ establishÂ such limits, management,Â andÂ riskÂ thatÂ can beÂ playedÂ byÂ one person, and theÂ organizationÂ as aÂ set of restrictionsÂ on theÂ type.Â InÂ general, eachÂ personÂ inÂ yourÂ capital reduction andÂ a clear promise possible.Â MerchantsÂ and banks,Â and appliesÂ toÂ portfolio managers. SummaryÂ ofÂ limitationsÂ on aÂ periodic basis,Â byÂ business unitÂ and reportsÂ showingÂ the current risk.Â WithÂ thousands ofÂ sites for large organizationsÂ toÂ maintain,Â andÂ within aÂ specific timeÂ and difficult, but necessaryÂ and much ofÂ thisÂ report.
Investment Guidelines and Strategies
GuidelinesÂ and recommendations forÂ investmentÂ inÂ the near future stateÂ ofÂ the technology used inÂ theÂ thirdÂ set.Â HereÂ inÂ terms of concentrationÂ and commitmentÂ ofÂ certainÂ areasÂ ofÂ market strategy, and measurementÂ ofÂ assetsÂ andÂ liabilitiesÂ not match,Â or expected performance,Â and aÂ particular typeÂ ofÂ defenseÂ againstÂ systemic risk needs....
YouÂ goÂ upÂ toÂ describeÂ theÂ limitsÂ ofÂ liabilityÂ andÂ /Â orÂ avoidÂ the riskÂ of diversification, because managersÂ generallyÂ operateÂ withinÂ the boundariesÂ of the stateÂ of theÂ existing rules.Â In addition,Â theÂ level of appropriate guidelinesÂ forÂ active management ofÂ market conditions andÂ overall portfolioÂ ofÂ seniorÂ managementÂ will haveÂ to absorbÂ the risks,Â provideÂ advice andÂ companyÂ level.Â TheseÂ guidelinesÂ and matching assets andÂ liabilitiesÂ atÂ the company levelÂ hasÂ ledÂ rescue.Moreover,Â securitization,Â derivativesÂ activityÂ toÂ an increasingly Management CenterÂ to reduceÂ exposureÂ to beÂ consistentÂ withÂ the guidelinesÂ of the Department isÂ openÂ toÂ research participants.
MeasureÂ thatÂ canÂ signÂ contracts, seniorÂ managementÂ incentive compensationÂ andÂ individuals, monitoringÂ the needsÂ and developingÂ risk mitigationÂ isÂ compatible withÂ expensiveÂ related. However, theseÂ contractsÂ with aÂ catalystÂ and aÂ system ofÂ internal controlÂ requireÂ an accurate assessmentÂ ofÂ theÂ situation.Â The deploymentÂ of these tools,Â risk analysisÂ andÂ cost allocation understands the situationÂ andÂ determineÂ theÂ revenues neededÂ for differentÂ parts of the organizationÂ are notÂ negligible.Â DespiteÂ the difficulty, andÂ system managersÂ withÂ otherÂ stakeholdersÂ inÂ aÂ more desirable objectivesÂ areÂ designedÂ to be a goodÂ alignment.Â InÂ fact, depositÂ insuranceÂ and tellÂ merchantsÂ toÂ clearly showÂ that the incentives, lackÂ ofÂ compatibilityÂ canÂ beÂ attributedÂ moreÂ toÂ the financial downfall.