Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all its obligations properly and in accordance with applicable banking regulations. Banking activities consist of: 1. Ability to manage funds 2. Ability to channel funds to the community 3. The ability to fulfill obligations to other parties 4. Compliance with applicable regulations. Meanwhile, the definition of bank soundness is a form of qualitative assessment of various aspects that affect the condition or performance of a bank through quantitative and / or qualitative assessments of the factors of capital, asset quality, management, profitability, liquidity and sensitivity to market risk. Explain what you know about a bank's soundness rating factor!
Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all its obligations properly and in accordance with applicable banking regulations. Banking activities consist of:
1. Ability to manage funds
2. Ability to channel funds to the community
3. The ability to fulfill obligations to other parties
4. Compliance with applicable regulations.
Meanwhile, the definition of bank soundness is a form of qualitative assessment of various aspects that affect the condition or performance of a bank through quantitative and / or qualitative assessments of the factors of capital, asset quality, management, profitability, liquidity and sensitivity to market risk.
Explain what you know about a bank's soundness rating factor!
Step by step
Solved in 2 steps
