Why have off-balance-sheet activities been a growing source of bank profits and what are the implications of this trend?

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: What is bank profitability? and market customer size and the concept of profitability? and…

A: Bank Profitability: Like all businesses, banks profit by earning extra money than what they pay in…

Q: Is Modern banks are both financial intermediaries and risk intermediaries? And why

A: Yes, modern banks are both financial intermediaries and risk intermediaries since they exist among…

Q: What are the implications of the transformation function for the liquidity position of the bank?

A: Answer: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and…

Q: Explain how commercial bank mange it balance sheet to maximize its profit without affecting the…

A: Commercial Banks are financial institutions accepting deposits from borrowers and using the deposits…

Q: How does a bank reconcile between liquidity and profitability.

A: Meaning of liquidity and profitability   Liquidity- is the ability of the bank to meet its…

Q: What is the link between securitization and the economic function of financial intermediaries? What…

A: Introduction: Securitization combines diverse financial assets into a single instrument that is then…

Q: What is the connection between securitization and the economic function of financial intermediaries?…

A: Introduction: Markets for the trade of financial securities are known as financial markets. These…

Q: How does capital protect a bank from failure?  Why are banks currently holding capital well above…

A: Introduction: Capital is a bank's own funds and it is the money obtained from its shareholders and…

Q: matic increase in bank holding companies?

A: The dramatic increase in bank holdingcompanies:Holding companies:The holding company is an…

Q: How does a deterioration in balance sheets of financialinstitutions and the simultaneous failures of…

A:

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: Why has the trend in bank supervision moved awayfrom a focus on capital requirements to a focus on…

A: Bank supervision is generally conducted in order to ensure that the banking operations are conducted…

Q: What are the advantages and disadvantages of direct lending for the bank? How are banks reducing the…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: Why is liquidity risk inherent to the business of banking? How can a bank seek to minimize its…

A: In  banking sector it is important to manage the liquidity because there is use of gas deposit of…

Q: Why do managers of financial institutions care so much about the activities of the Central Bank?

A: Financial institutions are intermediaries or mediators that facilitate the flow of funds between two…

Q: What would be a sign of a shortage in financial markets?

A: The financial market refers to the market in which people trade financial securities like bonds,…

Q: What are the motives of Off-Balance-Sheet activities and its affect on bank's balance sheet?

A: Off-balance-sheet activities are financial transactions and contracts in which a bank does not…

Q: Why have banks been losing income advantages ontheir assets in recent years?

A: The growth of the cash equivalent market and bond certificate market implies that firms aren't any…