Bank management components are:
# Asset management,
# Liquidity management
# Liability management
# Capital adequacy management
# Risk management
Asset management is related to the left hand side of the bank balance sheet. Bank mangers are concerned with the quality of their loans since that provides earnings for the bank. Loan quality and asset quality are two terms with basically the same meaning.
Government bondsand T-billsare considered as good quality loans whereas junk bonds, corporate credits to low credit score firms etc. are bad quality loans. A bad quality loan has a higher probability of becoming a non-performing loanwith no return. Ratio of non-performing loans in Japan is expected to be as high as 25% of the overall bank assets.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Asset Quality Rating — A review or evaluation assessing the credit risk associated with a particular asset. These assets usually require interest payments such as a loans and investment portfolios. How effective management is in controlling and monitoring credit risk… … Investment dictionary
Asset poverty — is an economic and social condition that is more persistent and prevalent than income poverty. It can be defined as a household’s inability access wealth resources that are sufficient enough to provide for basic needs for a period of three months … Wikipedia
Quality television — (also called quality TV ) is a term used by television scholars [Dr. David Lavery (the Chair in Film and Television at Brunel University in London); Dr Janet McCabe (Trinity College, Dublin);Kim Akass (London Metropolitan University); and Kristin … Wikipedia
asset volatility — UK US noun [U] FINANCE ► the rate at which the price of an asset moves up and down: »The improvement in credit quality reflects higher stock prices and lower asset volatility … Financial and business terms
Asset-backed security — In finance, an asset backed security is a type of debt security that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical… … Wikipedia
Asset protection insurance — Introduction A proper asset protection strategy prevents creditors from gaining access to assets. The basic areas of need encompassing asset protection are: litigation and creditor protection, sovereignty protection, succession and… … Wikipedia
asset — n. 1 a a useful or valuable quality. b a person or thing possessing such a quality or qualities (is an asset to the firm). 2 (usu. in pl.) a property and possessions, esp. regarded as having value in meeting debts, commitments, etc. b any… … Useful english dictionary
asset — /ˈæsɛt / (say aset) noun 1. a useful thing or quality: *This ability to roll the eyes was a great asset on this sort of expedition. –criena rohan, 1963. 2. an item of property, as a building, a piece of equipment, etc. 3. an economic resource:… … Australian English dictionary
Asset Size — The total market value of the securities in a mutual fund s portfolio. Total assets or total net assets are also used to describe a fund s size. When it comes to the size of a mutual fund, bigger is not necessarily better. The key to a fund s… … Investment dictionary
asset — assetless, adj. /as et/, n. 1. a useful and desirable thing or quality: Organizational ability is an asset. 2. a single item of ownership having exchange value. 3. assets, a. items of ownership convertible into cash; total resources of a person… … Universalium