Financial institutions comprise banks, building societies, credit unions, trust, insurance and mortgage loan companies. This topic will explain how the managers of these institutions, particularly commercial banks, make decisions about the asset and liability structures of their balance sheets, including decisions on loans, securities, capital, deposits and other funding sources. It will explore the performance of financial institutions and explain how interest rates impact on profitability and risk. The topic also briefly considers other risks faced by financial institutions and risk mitigation techniques. The international regulatory environment is also described.
This topic aims to: