What is the primary goal of a commercial bank? Why may this goal be translated into maximising the firms stock share price?

14.8 Bank capital

How does the proportion of capital for a typical bank compare with that of a typical industrial firm? Do you believe banks have adequate capital? Why?

14.13 Uses of funds

Why do you think small banks have a higher proportion of assets in investments than do large banks?

14.15 Off-balance sheet banking

What do we mean by 'off-balance-sheet' activities? If these things are not on the balance sheet, are they important? What are some off-balance-sheet activities?

14.20 Liability management

Liquidity management can be practised on either side of the balance sheet. How are asset and liability management similar and how do they differ? Why do smaller banks have limited access to liability management.