What is the goal of the bank management for shareholders?

Question

What is the goal of the bank management for shareholders? What do banks do to solve Interest Rate Risk? What is the risk that the market collapses?

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Ch. 19 Bank Management       • The goal of bank management is to make money for shareholders       (maximize shareholder wealth); to make higher returns you must take        on higher risk    • Banks rely on the financial markets through the use of loans and       investing in order to manage themselves           o They use money markets, mortgages, bonds, etc.          o They loan money and invest    • Bank Directors decide:           o Personnel decisions: bank directors must try to hire people that             are trustworthy and experienced (when you take people from             other banks, they can bring in other customers)                ▪ They need all types of people, including personable                   people, heavy math people

What is the goal of the bank management for shareholders?

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Introduction to Financial Institutions and Markets FI 301 - - FI 301

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What is the goal of the bank management for shareholders?

What is the goal of the bank management for shareholders?

Other study guides from Introduction to Financial Institutions and Markets FI 301 - - FI 301

Others also asked

Discussion and review:

Other study guides from
Introduction to Financial Institutions and Markets FI 301 - - FI 301