"A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans."
The study of the economics of banking such as lending decisions and interest rate risk management.
Banking Basics: An overview of the banking system, how banks operate, different types of banks, and their functions.
Money Creation: How banks create money through fractional reserve banking.
Bank Regulations and Supervision: The role of regulatory bodies, such as the Federal Reserve, in supervising and regulating banks.
Interest Rates: The determinants of interest rates, including the role of central banks in setting rates.
Liquidity Management: How banks manage their liquidity to maintain their financial stability.
Asset Liability Management: How banks manage their assets and liabilities to maintain their financial health.
Credit Risk Management: How banks assess and manage the risk of credit defaults by borrowers.
Capital Adequacy: How banks maintain their capital adequacy to ensure financial stability.
Financial Intermediation: The role of banks as financial intermediaries, connecting savers and borrowers.
Payment Systems: The different types of payment systems and their importance in the banking industry.
Bankruptcy and Resolutions: The procedures for resolving bankrupt banks, including bailouts, nationalization or liquidation.
Financial Market Analysis: The analysis of financial markets for pricing and hedging of financial instruments used by banks.
Corporate Finance: The application of financial principles in the management of corporations.
International Banking: The challenges, risks and opportunities involved in banking across multiple countries.
Risk Management: The identification and quantification of various types of risks, such as credit risk, market risk, and operational risk.
Derivatives Markets: The role of derivatives markets in banking and their use for hedging.
Financial Econometrics: The application of statistical methods in modeling financial data to inform decision making.
Asset Pricing: The theories and models used to price financial assets, such as stocks, bonds and derivatives.
Behavioral Finance: The study of how individual and group biases affect financial decision making.
Financial Regulation: The study of the rules governing the financial industry and the impact of regulatory changes on the industry.
Deposit Market: This is the study of the behavior of depositors and the decisions they make regarding their deposits, including interest rates, holding periods, and the services provided by different banks.
Loan Market: The study of the behavior of lenders, borrowers, and the decisions they make regarding loan interest rates, loan terms, and the factors affecting the supply and demand of loans.
Credit Risk: This is the analysis of the risk that a borrower will default on a loan, including factors such as credit history, financial ratios, and the general economic conditions affecting the borrower.
Capital Adequacy: This is the study of the capital structure and management of banks, including the calculation of the appropriate level of capital needed to ensure the bank's financial stability and compliance with regulatory requirements.
Liquidity Risk: This is the analysis of the risk that a bank may not have sufficient liquid assets to meet its short-term obligations or sudden cash demands.
Operational Risk: This is the study of the risks associated with the day-to-day operations of a bank, including IT systems failure, fraud, and compliance failures.
Market Risk: This is the study of the risks associated with changes in market conditions, such as fluctuations in interest rates, exchange rates, and credit spreads.
Regulatory Compliance: This is the analysis of the legal and regulatory requirements that banks must comply with in order to operate in a given country or region.
Mergers & Acquisitions: The study of the rationale, methods, benefits and costs associated with corporate mergers and acquisitions in the banking industry.
Microfinance: The study of financial services provided to low-income individuals and small businesses, including loans, savings accounts, and insurance.
International Banking: This is the analysis of the operations and risks of international banks, including foreign exchange and derivative instruments, cross-border capital flows, and remittances.
Financial Technology: The study of the impact of technological innovations on the banking industry, including online banking, mobile payments, and the use of artificial intelligence and blockchain technology.
"Whereby banks play an important role in financial stability and the economy of a country."
"Most jurisdictions exercise a high degree of regulation over banks."
"...under which banks hold liquid assets equal to only a portion of their current liabilities."
"Banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords."
"Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy."
"...but in many ways functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ancient world."
"A number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and the Rothschilds – have played a central role over many centuries."
"The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472)."
"The oldest existing merchant bank is Berenberg Bank (founded in 1590)."
"A bank is a financial institution that accepts deposits from the public."
"...accepts deposits from the public and creates a demand deposit while simultaneously making loans."
"In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements..."
"Banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords."
"Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy."
"...regulations intended to ensure liquidity."
"...but in many ways functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ancient world."
"...ideas and concepts of credit and lending that had their roots in the ancient world."
"Banks play an important role in financial stability and the economy of a country."
"Most jurisdictions exercise a high degree of regulation over banks."