QUAKER NATIONAL TRADITIONAL BANK

A Case Analysis

Group # 5

Come july 1st 29, 2013

I. VIEWPOINT

It is the standpoint of the business vice president of Quaker Financial institution – Mr. Matthew Killian. II. ASSERTION OF THE TROUBLE

The problems of the business vice president – Mr. Killian is means properly manage risks of Quaker Countrywide Bank. 3. AREAS OF CONCERN

First to consider is definitely the bank's common sense of the contact with credit, interest and liquidity risk to become excessive associated as to all their capital strength and earnings performance. Second, the bank funded approximately 25% of its assets through large Cd albums, more than twice the expert bank common of about 12%. Third, Quaker's financial information and created policy transactions regarding the interest rate and liquidity risk management which would not provide info and certain guidelines needed to make well-reasoned asset and liability managing decisions. IV. ALTERNATIVE METHODS OF ACTION

Since Quaker National Bank posseses an excess credit risk, they should manage all their capital correctly. And since they have a higher credit rating risk and liquidity risk, they should lower their financial obligations and put up funds throughout the earning advantage. Second is the fact Quaker Nationwide Bank shall match the assets and liabilities of Quaker Traditional bank. Interest rates happen to be due to modify every time consequently when is matching resources and financial obligations the interest rates of each period should be considered as a result required. But when Quaker Nationwide Bank will not be able to meet their assets and liabilities, they can mitigate the chance of economic loss arising from modifications in our value in the underlying which can be known as hedging. V. SUGGESTION

The picked alternative is the second one particular, to match the assets and liabilities of Quaker Traditional bank. Interest rates are due to alter every time therefore when the first is matching possessions and financial obligations the interest prices of each period should be considered as a result required. Nevertheless Quaker National Bank are not...

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