Question

Discuss the strategies for managing bank capital. This discussion should three to four paragraphs long.

Answer 1

Banks Assesses the impact of new rules on their capitals by capital planning and optimization process.

They Assess the impacts on various business models and the risk adjust returns of the proposed actions.

They develop a capital plan which contains impacts on capital level, liquidity possession etc.

The banks provide product offering,cli client pricing strategies to seek changes in firms, business model.

Many banks use well defined appetite rather than simple risk capacity to derive the capital available for allocation.

Most banks have dedicated centralized decision bodies and process ownerships for capital management.