Understanding About Bank Business
March 8, 2010
Bank Business is exposed to the four main risk, that are credit risk, market risk, liquidity risk and operational risk.
Credit risk is the inability of customers to fulfill the obligation to pay back. Market risk is the fluctuation in asset values caused by changes in market prices and yields. Liquidity risk is an inability to accommodate the maturing obligations and withdrawals as well as asset growth and financing to meet obligations at a reasonable market price. Operational risk is the potential losses and incidents involving people, processes, technology, legal issues, external events, compliance, or reputation.
To assess risks, in a risks of bank is discussed and assessed at the Board of Commissioners and the Board of Director level using a comprehensive committee structure, which described the Business Risk Management and Governance at the Bank. Read more
Global Interest Rates Trend 2010
January 28, 2010
During the economic crisis conditions, the interest rates globally naturally decline. Interest rates in various countries revealed by central banks in each country in the hope that lower interest rates would lift economic performance.
As we understand, the interest rate is one of the most effective monetary policy instruments. Decline of interest rates will decline bank loan rates and to trigger increased credit. Loans in a healthy and well is one way to boost the economy of a country with the creation of investment and consumption.
Global interest rates now seems began to increase. After Fed decided to cut its benchmark rate to as low as 0 – 0.25% in December 2008 and keep up to date till now, a gang part of the world’s central banks to lower interest rates. Since August 2007 until December 2008 the Fed has cut interest rate by 500 bps. Read more