The Managerial Functions in a Commercial Bank Assignment

The Managerial Functions in a Commercial Bank - Assignment ExampleThis ensures that issues of currency laundering do not occur in the bank.The capital adequacy management refers to the banks managerial function that ensures that a bank has adapted capital to carry out all its operations. It involves a number of activities and process. First, the bank through its manager essential decide the amount of capital the bank must keep. This is done by identifying the needs of the bank and the central bank regulation policy on bank reserves. Second, once bank capital needs atomic number 18 identified, adequate policies are formulated to ensure that the capital adequacy level is not exceeded. Third, the bank through it managers mobilize the necessary capital and manage it to line up to policies that ensure that it is sufficient and quality bank assets at any given time.The asset-risk management refers to protecting banks assets from all risks associated with the asset and ensuring that t hey are performing appropriately. Asset-risk management involves keeping complete records of all the assets. The information that needs to be included in the asset register includes asset type, date and purchase price at acquisition, stock-purchase warrant information, spare parts, repair facilities and dates as well as service contracts (Collier 146). Banks management must ensure that all preventive maintenance is carried out and all plotted inspection must be carried to ensure that the asset is functioning appropriately. In addition, all assets must conform to the industry regulatory standards. The above functions would ensure that banks assets are reliable and performing as required.Risk structure of arouse rates is comprised of all risks associated with changes in interest rates as well as defaults that whitethorn occur when a client take a loan and fail to honour his or her financial obligations. Bonds duration is usually used to measure the interest rate risk. On the other hand, Term structure of interest rates is defined as a way in which interest rates on bonds with varying maturity terms are related. It has been estimated that interest rates on bonds of varying term maturities move together with time.