patois plays a main role as a financial intermediary. They collect money from the race who make up the surplus and lend them to units in deficit (Case, B., Girardone, C., & Molyneux.p., 2006). The hearty process seems simple theoretically, however, it is not as easy to master as what it looks like in the practical world. Bank faces separate of risks by day to day practice, e.g. with the whole economic shape change the interest rate will goes up and down, it whitethorn attract peck deposit more when it goes up or borrow more when the interest goes down, this may cause the broad different between bank liabilities and bank assets. The market risk incurred in the trading of assets and liabilities due to changes in interest rates, stand in rates, and other asset prices (Saunders, A & Cornett, M.M. 2006) In addition, when people deposit their money in the bank they expect low-risk, unequal term and high return. Whereas, the people who in the opposite position, e.g. the people who make loans they expect should be large size, long-term and bring down interest pay back. Interest rate risk may arise when different requirement mismatch to for each one other. liquid risk may occur at same sequence if bank dont have enough liquidate assets for a choppy surge in liability withdraw.
Moreover, bank likewise faces assign risk when borrower can not make their repayment on time or default to make it. In addition, off-balance tabloid risk, operational risk, strategy risk and regulatory risk also have been faced by bank nowadays.
On the following content we will choose three banks from each country between New Zealand and Australia that are ANZ National Bank, Bank of New Zealand and TSB bank, Bendigo Bank, Commonwealth Bank and Westpac Bank Australia respectively. And we will list risks that...
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