Bank Funds: Sources, Functions, Use of Bank Funds

The bank is a financial intermediary that accepts surplus savings as deposits and extends funds to those who can approach the bank with bankable projects. Bank officials must know about the sources of deposits. The number of funds can be increased or decreased depending on the professional skill of the bank executives. For example, stable…

CAMELS Rating System: Meaning, Background, Components

CAMELS is an internationally recognized supervisory rating system to assess the strength of banks or financial institutions according to six factors.

Methods of Bank Performance Evaluation

A bank is evaluated based on profit and loss in the same way for other businesses. If the shareholder of the bank gets more profit, then the bank is identified as successful. Banks can attain success if relevant risks arc effectively controlled. The 5 types of risks that are needed to be carefully controlled. The…

Bank Failure: Qualitative & Quantitative Indicators of Bank Failure

Meaning of Bank Failure Bank failures result from lax credit standards, ineffectual portfolio risk policies, risks assumed beyond the limits of a bank’s capital, misreading performance barometers and neglecting technological upgrades (both system-wide and specific), loan exposure, and ineffective risk rating systems. As we shall see, banks have come under increased regulatory scrutiny, with many…