Finance系列（3）之Deposits & Lending

1. Deposits
Customer deposits provide banks with cheap and “sticky” funding.

2. Lending
Mortgages and other secured credit.

Mortgage (贷款抵押) is a loan guaranteed with the collateral of property, where the borrower has an obligation to make a predetermined series of payments.

2.1. Loan opportunities
Increasing size and diversity of loan portfolio to reduces relative risk.

Customizing rates and fees to take into account customer profitability.

2.1. Loan challenges
Managing complexity
Competition from non-banking industries

3. Managing counterparty credit risk
challenges for banks: accurately measure counterparty credit risk across all product types is difficult.

Approach 1: Dividing and distributing credit
limit allocations.

Approach 2: Implementing limit-checking functions
as part of a central limits management system