Banks (FRM Part 1 2023 - Book 3 - Financial Markets and Products - Chapter 1)

For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: analystprep.co...
AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams
After completing this reading, you should be able to:
- Identify the major risks faced by banks and explain ways in which these risks can arise.
- Distinguish between economic capital and regulatory capital.
- Summarize the Basel committee regulations for regulatory capital and their motivations.
- Explain how deposit insurance gives rise to a moral hazard problem.
- Describe investment banking financing arrangements, including private placement, public offering, best efforts, firm commitment, and Dutch auction approaches.
- Describe the potential conflicts of interest among commercial banking, securities services, and investment banking divisions of a bank, and recommend solutions to these conflict of interest problems.
- Describe the distinctions between the banking book and the trading book of a bank.
- Explain the originate-to-distribute banking model and discuss its benefits and drawbacks.
0:00 Introduction
2:37 Types of Banks
3:36 Major Risks in Banking
18:39 Regulatory vs. Economic Capital
25:48 BCBS Regulatory Capital Guidelines
28:30 Motivations behind Basel Committee Regulations
29:41 What is Deposit Insurance?
32:38 Deposit Insurance and Moral Hazard
34:10 Banking financing Arrangements
45:49 Conflicts of Interest in Banking
51:21 Banking Book vs. Trading Book
52:48 The Originate-to-Distribute Banking Model

[@seshagiri88rao]

Great video presentation

[@analystprep]

You are welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@sandeepkaimal9915]

Thanks Prof

[@chrstfer2452]

I wonder if thats a reason the normal distribution works so well despite the fat tails, because beyond a few standard deviations of risk things get bad enough that you can cut it off. Hmm

[@daniel-boplehnimely4566]

Awesome

[@RandomPeopleYTDotCom]

How can I get the slides?

[@MouliBeesetti]

Why don't you use pen or mouse pointer to explain... Your explanation will be much better if you do it..

[@shank.p4014]

Maybe ask this question if you are willing to pay him