Banking

Name of the student:

Student Number:

Date of submission:

Task:

Code:

Topic: How international banking institutions manage the interaction between risk, return

and capital
Banking

Introduction

Banking institutions are meant to transform certain transactions that include maturity, liquidity

and risks. This is a long term objective that needs to have both the members of the institutions

and the public to have patience and confidence in it. This is because the public are the customers

and the main characters of the banks whereas the members of the banks are the once controlling

the transactions.

The process of managing the interaction between risk, return and capital

To manage the transaction between risks, return and capital, banking institutions have involved

technology through financial technology by integrating financial services with modern

technology, a process called FinTech. This improves the effectiveness and the efficiency of the

stated transactions. International banking institutions include both banking and non-banking

entities (shadow banking). the process of managing the stated transactions, the two institutions

are involved. The main way to manage the terms, they create a mismatch between asset and

liability maturity and then make sure that the mismatch keeps adequate funds to flow in the bank

so that it can meet both increased assets and meet the obligations of satisfying what the customer

asks. This is met in the process of meeting the obligation of the entities, the functions of the

banking systems, the principles for the existence of banks, shadow banking and the risks of

shadow banking.

The process international banking institutions manage the interaction between risk, return and

capital can be summarized by looking at the banking process. The banking process has been

made to manage the stated terms. This is because banks create a mismatch in the economy and

try to solve the mismatch balancing risk, return and capital.

Banking