Abstract

Commercial banks have oftentimes been modeled assuming that they are pricetakers. However, one of the crucial factors of bank portfolio management is that many of the markets banks work in exhibit the characteristics of imperfect competition. In this note the differences in modeling mutual funds and commercial banks are examined. Results are then derived and examined to point out the crucial role such things as liquidity and liability management play in the management of commercial banks.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.