WHAT DOES EXIM BANK JAMAICA DO?

Q: What is London Interbank Offered Rate (LIBOR)?

A: London Interbank Offered Rate (LIBOR): It is the interbank benchmark interest rate offered by an…

Q: Explain the possible IFRS treatment of bank loans.

A: IFRS is international finance reporting standards will replace with Accounting standards 39.

Q: Banks? Banking Online? Is Banking Safe?

A: We can define financial institution as those institutions which help in the transfer of funds from…

Q: What is financial intermediation and what are the main intermediation channels? Why do banks…

A: Financial intermediation is an important concept in finance. This is specially in the context of…

Q: What does The Securities and Exchange Commission do?

A: Financial market refers to the system where the trading of financial instruments between buyers and…

Q: Why is it vital for banks to diversify worldwide.

A: Diversify is a term used to describe a technique which reduces risk by allocating investments across…

Q: Are merchant banks relevant to the Ugandan economy?

A: Meaning of Merchant Bank :- A merchant bank can be classified as the type of financial intermediary…

Q: Why do we have banks chartered by the States, and some also chartered by the Federal government?…

A: State chartered banks are operated in a particular state only. But there is no restriction on the…

Q: what are interest rates? What do they have to do with the amount of credit provided to businesses…

A: The interest rates regulate the flow of money in a country's economy by controlling the total amount…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.