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Business LibreTexts

9: Bank Management

  • Page ID
    596
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    • Anonymous by request

    Learning Objectives

    By the end of this chapter, students should be able to:

    • Explain what a balance sheet and a T-account are.
    • Explain what banks do in five words and also at length.
    • Describe how bankers manage their banks’ balance sheets.
    • Explain why regulators mandate minimum reserve and capital ratios.
    • Describe how bankers manage credit risk.
    • Describe how bankers manage interest rate risk.
    • Describe off-balance sheet activities and explain their importance.