When focusing on capital management in banking, it can be said that this is one of the critical aspect of banking is capital management whereby it is a feature in banking that tends to entail more capital and also more liquidity while at the same time experiencing less risk. Besides that, this form of approach tends to ensure that there is a lower level of returns that are based on capital that is seen to entail higher costs of doing various forms of business and also ensure that there is a slowed growth that is associated with ultimate forms of effects that can be felt by clients and shareholders (Allan, 2006, p.60).
Due to the presence of capital management, there is likely to have various forms of impacts that are based on the profitability of various forms of business models. Besides that, this will also require forms of undertake various forms of process and also changes.
When focusing on capital management in any banking environment, it can be said that the aspect of capital management is usually critical as it ensures that all issues to do with issues to do with rates of returns are addressed in a good manner, and this makes all banking institutions to enjoy good forms of profits (Lind, 2012,p.22).
The capital management ensures that there is a reduced form of OTC derivatives and also ensuring that there is a clear way that customer facilitation activities can be achieved with the reduction of various forms of trading inventories. The issue to do with hedging is also focused when dealing with the issues to do with management of any given banking institution based on the fact that there is always a need to ensure that all issues to do with management of funds are met in a good manner that will make all parties adhere to good terms of banking.
When focusing on whether the bank is adequate capitalized, it can be said that this usually depends from bank to bank. For instance, if the bank can support all these roles and also ensure that all stakeholders are satisfied with all forms of monetary needs, then the bank, in this case, can have a good capital base to support all its respective activities that need finance. Furthermore when accessing the adequacy of capital, it can be said that capital plays a critical role in ensuring that all issues to do with the management of capital are done in a good manner that is based on ensuring that capital is managed in a good manner. When addressing issues to do with liquidity challenges tends to pose great threat to various forms of deposits that might be used in any given bank that tends to have issues with management of capital in an effective manner. When focusing on the asset of any given bank, it can be said that Basel III tends to have a good manner at which the bank will be able to carry its respective activities in a good manner (Ross, Westerfield & Jaffe, 2005, p.44).
When focusing on the management of any given banking institution, there is a need to make sure that all forms of risks that might be experienced are handled in a good manner so as to make sure that all issues to do with management of risks are handled in a good manner so as to make sure that all things to do with management of capital is addressed in a manner that will not shrink the bank profits and compel it to have other alternative means of seeking to have a good method of ensuring that any form of banking is managed in a good manner as even issues to do with operational risks are reduced by ensuring that there is a good method of ensuring that all forms of money are managed in a good manner (Sen, 2008,p.55).
Allman, B. (2006). Banking. Minneapolis, MN: Lerner Publications Co.
Lind, P. (2012). Small business management in cross-cultural environments. New York: Routledge.
Ross, S., Westerfield, R., & Jaffe, J. (2005). Corporate finance. Boston: McGraw-Hill/Irwin.
Sen, M. (2008). Business management. Jaipur, India: Oxford Book Co.