Commercial Bank Management

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All are 250 words

Assignment one

Economic business cycles tend to follow a 4–7 year time line from one recession to another. The U.S. government has two primary means of dealing with the business cycle: fiscal policy and monetary policy. Fiscal policy is concerned with taxes and government spending, both of which are controlled by Congress. Monetary policy is concerned with the money supply, control of inflation, and the granting of credit. The Federal Reserve System (Fed) is the primary manager of monetary policy.

Consider the following scenario:

Fortas Bank is reviewing its credit policy and has asked you to review the various ways that the Fed can affect the granting of credit in the economy. Write a 250-word response that addresses the following questions:

1. What are some the various ways that the Fed can affect the granting of creidt in the economy?

2. Make sure to address the following:

· reserves

· margin requirements

· moral suasion

Assignment two

A commercial bank takes in deposits from savers and pays interest to those depositors. The funds from these deposits are then loaned to borrowers who pay interest back to the bank. The spread or difference between the interest paid and the interest earned is the bank's profit. Banks are also highly leveraged businesses that must maintain certain minimum capital levels known as reserves to assure financial solvency.

Consider the following scenario:

Sandy Springs Merchants Bank is looking at a comprehensive financial analysis for the current year. Write 250 words reviewing the financial analysis requirements of the bank. Your answer should include the following:

1. A brief overview of the bank's Income Statement primary elements

2. A brief overview of the bank's Balance Sheet primary elements

3. Bank Reserve requirements

Assignment three

Colonial Bank is trying to implement a risk management policy to minimize interest rate fluctuations in the short-term and long-term interest rates as measured by the yield curve. Write 250 words that answer the following question:

1. Is a comprehensive risk management policy something the bank should develop? Why or why not?

2. Make sure to address the following:

· Market risk policy

· Credit risk policy

· Operational risk policy

Assignment four

Midland Bank is planning to increase its commercial lending operations, especially for businesses in retailing and manufacturing. Write 250 words explaining what types of assessment the bank should consider conducting in addition to character, capacity, and capital. Be sure to discuss the following:

1. The borrower's 3–5 year cash flow statements

2. Industry growth projections

3. Overall economic projections

Assignment five

The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.

Consider the following scenario:

Stevens Bank and Trust Company is increasing its nondeposit services; in particular its loan operations.

1. As the vice president of loans, write 250 words explaining the various kinds of loans that Stevens can make. Be sure to include an explanation of the following:

· Commercial and industrial loans

· Interbank loans

· Loan participations

· Real estate loans

· Loans to consumers