1 / 6

Effective Bank Liability Management: Strategies for Attracting Deposits

This lecture delves into bank liability management, emphasizing how financial institutions can acquire funds from depositors and other market sources. It discusses the optimal mix of funds, taking into account costs and expected returns. Key focus areas include the management of borrowing activities, liquidity strategies, and the importance of deposit types such as current accounts, savings accounts, and negotiable certificates of deposits (NCDs). Additionally, it highlights customer attraction strategies, including competitive interest rates, customer service quality, and effective branding during various economic conditions.

trina
Télécharger la présentation

Effective Bank Liability Management: Strategies for Attracting Deposits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MCF 304: Bank Management Lecture 2.3 Bank’s Liability Management

  2. Liability Management Involves acquiring funds from depositors and other fund providers in the financial market, and determining the suitable mix of funds for the bank after taking into account the cost of various sources of funds and their expected rates of return Specifically manage bank’s borrowing activities in the financial markets in order to get bank’s liquidity

  3. Deposits Current Accounts Savings Accounts Fixed Deposits Accounts REPO Negotiable Certificates of Deposits (NCD’s) Short term NCD’s Long term NCD’s Floating Rate NCD’s

  4. How to Attract Customers? Competitive interest rates Bank’s size Customer waiting area Number’s of ATM Car park facility Quality of bank staff Customer service Product uniqueness Policies which are harmonious with customers Location Branding

  5. Economic Level It is easier to procure deposits from customers during economic expansion rather than contraction During recession, banks will have to raise interest rates in order to attract deposits Earnings Per Share

  6. Thank You! Izdihar Baharin @ Md Daud Post Graduate Centre HP: 006019-5170817 Email: izdi@oum.edu.my

More Related