Purpose, Function and Operations of Banks

Banks are quite different than other types of organizations. Understanding the purposes, functions and operations of Banks are essential for the proper management of any financial institution. This presentation introduces key concepts in understanding how banks operates.

The presentation covers the overall goal of banks and key management positions required in banks of various sizes. It explains how banks are arbiters of risk and providers of credit to all types of borrowers including Consumers, Businesses, other Banks and even the Government. Leverage is also a factor to consider in the operations of a bank and the primary reason why regulation is necessary for financial institutions.

The presentation reviews the primary Risks that poses the greatest threat to financial institutions including Credit and Liquidity Risks and the key ratios and process required to monitor and control their levels. 

Covered Topics

  • Management: Roles & Structure
  • Banks and the Economy
  • How Are Banks Different From Other Operating Entities?
  • Why Banks Fail
  • CAMELS Ratings
  • Income & Balance Sheets
  • Risks
    • Leverage 
    • Interest Rate Risk
    • Credit Risk
  • Allowance for Loan and Lease Losses (ALLL)
  • Key Ratios

Who Should Attend?

Anyone in the institution having compliance responsibilities - when you think about this, it could be just about anyone in the institution. This may include members of senior management, operations personnel, lending personnel, underwriters, customer service representatives, back-room personnel, and of course compliance officers, auditors, and attorneys, and anyone else in the institution that might benefit from this valuable information.

The biggest value of the series..."Ability to have someone explain in plain English what is going on." Christine G., Bank Fund Staff Federal Credit Union