Banks, Insurance Companies, and Fund Management

Free GARP FRM Part I lesson in Financial Markets and Products. 22 min read, ~3,252 words.

Banks face credit, market, operational, liquidity, and business risk; capital absorbs unexpected loss; the banking book holds loans at amortized cost while the trading book is mark-to-market. Economic capital is internal and risk-sensitive at a confidence level; regulatory capital floors loss at Basel ratios; migrating positions between banking and trading...