Bank Management 1

What is CAMELS rating?

• CAMELS rating is a system for grading the humps on a camel
• CAMELS rating is a scale to rate the quality of camel milk
• CAMELS rating is a method for evaluating the speed of camel racing
• CAMELS rating is a supervisory rating system to assess the soundness of financial institutions.

What does it mean M in CAMELS rating?

• Management
• Machinery
• Marketing
• Money

Why Liquidity of assets are important for a commercial bank?

• Liquidity of assets is important for a commercial bank to reduce operating costs
• Liquidity of assets is important for a commercial bank to maximize profits
• Liquidity of assets is important for a commercial bank to invest in long-term projects
• Liquidity of assets is important for a commercial bank to meet short-term obligations, customer withdrawals, maintain stability, and manage unexpected cash flow needs.

Credit risk for a bank means -

• The likelihood of a bank making a profit
• The number of branches a bank has
• The potential that a borrower or counterparty will fail to meet its obligations
• The amount of interest charged on loans

Managerial problems of the bank as caused by external environment -

• Employee turnover
• Customer satisfaction
• Marketing strategies
• Economic conditions, regulatory changes, technological advancements, and competitive pressures

Sources of bank funds are -

• Government grants
• Personal loans from employees
• Foreign aid
• Customer deposits, interbank borrowing, issuance of bonds, and equity capital

Other than capital and deposits from the customers what is the source of a bank can be?

• Income from interest on loans, fees for services, investments, and other financial activities
• Rental income from properties
• Sales of merchandise
• Donations from the government

Indicators of successful bank are -

• Inefficient operations
• Low customer satisfaction
• Strong financial performance, low non-performing loans, high customer satisfaction, efficient operations, and effective risk management
• High non-performing loans

Money can be easily acquired and disposed of without high costs and with relative certainty as to its value meaning -

• Money is a highly volatile asset.
• Money is a highly liquid asset.
• Money is a highly illiquid asset.
• Money is a highly risky asset.

Which is the first foreign bank in Bangladesh?

• Standard Chartered Bank
• Barclays Bank
• Citibank
• HSBC Bank