08. Supervision view

Question 1

Name the 4 models of banking systems:

Answer 1

sound, stable, not scaring customers and supporting the economic growth.

Question 2

Stake Holder Expectation- Debt Holders and rating agencies expect..

Answer 2

• Sufficient Capital buffer
• Ongoing solvency and debt servicing ability
  -Ensure Quality of earnings streams.

Question 3

Shareholders/Equity analysts expect..

Answer 3

• Return available to them
• Balance between risk and return
• Articulated strategies

Question 4

Regulators / Supervisors expect..

Answer 4

• Protection of depositors and public interests
• Maximum potencial losses
  -Best practices

Question 5

Customer / Employee Expects..

Answer 5

-Quality of service and fair treatment
-An upside from investment returns
-Social and Ethical responsibility
-Stable employment

Question 6

Is it possible to eliminate risk?

Answer 6

No, Risk can be reduced or transferred but never eliminated, therefore potential losses must be financed by internal or external resources