标题: No questions on banks for IPS section [打印本页] 作者: pimpineasy 时间: 2011-7-11 19:39 标题: No questions on banks for IPS section
Anyone noticed how there havent been any questions on IPS for banks? models seems to be one on individual cases then a case for pension fund or foundation / endowment..is it time for a bank question?作者: bpdulog 时间: 2011-7-11 19:39
Banks
Return = Positive net interest spread
Risk = Low risk tolerance due to short term liabiltiies
Time Horizon = short term (3-5 years?)
Liquidity = High as must meet short term loans
Taxes = Taxable entities
Regulatory = Highly regulated, valuation criteria's + asset reserves
Unique = Geographical risk / concentration
Am I forgetting anything??作者: Analti_Calte 时间: 2011-7-11 19:39
Banks make loans (so loans are assets for banks). Bank liabilities are deposits. Thus, banks have a high liquidity need because of deposits that can be demanded at any time by depositors such as you and I.
In short, banks borrow short and lend long = high need for liquidity.作者: Chuckrox 时间: 2011-7-11 19:39
ALM, LADG.
And the securities portfolio is used to {...}作者: IAmNeil 时间: 2011-7-11 19:39
deriv108 Wrote:
-------------------------------------------------------
> ALM, LADG.
>
> And the securities portfolio is used to {...}
{manage the duration difference between its assets and liabilities (Equity) }
