Banking Management

Banking Management

1. Discuss the rationale behind risk-based capital requirements.
2. What are some of the weaknesses behind risk-based capital standards?

3. Why do smaller banks often have a more difficult time raising new capital compared to larger banks?
4. Explain why credit quality data may not accurately reflect the quality of individual assets and the likelihood of default.
5. Discuss the role of a loan committee and a centralized underwriting department in credit making decisions.
6. Discuss the regulatory efforts of the US and other governments’ initiatives to regulate banking. Why is regulation been necessary? Has it been effective? Why or why not?