Last updated on March 29th, 2024 at 10:08 am
5 banking and finance case studies you must know
We're here to help you become a more knowledgeable financial expert. Banking and finance are two of the most critical aspects of the economy, yet relatively few people truly know what it takes to succeed in this field. The good news is, with the help of some strong banking and finance case studies, you can get an education on exactly what's required to succeed in this challenging career.
Bank Mergers
Mergers and acquisitions are the best way for banks to expand their business. They're also a way for banks to grow their business since they can acquire other banks or financial institutions with more customers than they do.
Mergers and acquisitions are also excellent opportunities for investors because they expose you to multiple industries. If one company goes bankrupt, its assets might still be worth something if another purchases them!
Diversification
It is the process of investing in a variety of assets. It reduces risk, which means it can increase return. As an example, if you have $10,000 in stocks and $4,000 in bonds but none of them are doing well at the moment (stock prices are down and bonds aren't making much interest), then diversifying will help you out because it will reduce some of your risks by spreading out your money across different sectors or industries and countries.
The beauty of diversifying is that so many options are available to invest with—you don't need to stick with just one type of asset class or sector anymore!
Leverage
Leverage is the use of borrowed funds to increase the amount of investment. It can improve the return on investment, but it also increases risk. Leverage works like this: You borrow money from someone and invest it into something risky (like stocks), which will result in higher returns than if they had just invested their own money into that thing themselves.
Risk Management
Risk management identifies, assesses, and controls risks to make better business decisions. It involves a systematic approach to identifying and analyzing all types of risk (i.e., financial, operational, and legal) that affect your company's ability to operate over time successfully.
Deposit Mobilization
Deposit mobilization is the process of raising funds by collecting deposits from the public. It is one of the critical functions of a commercial bank, and it helps your institution to meet its obligations.
Deposit mobilization involves collecting money from people who have not yet deposited with you—the so-called "uncollateralized" deposits. These include savings accounts and investments like mutual funds or stocks and bonds.
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