Risk Capital at a Bank
Conduct additional research on Bank of America.
Write the next section of your risk management plan in which you discuss the importance of risk capital to the banking industry, in particular, Wells Fargo Bank, Citigroup, or Bank of America.
Describe the steps taken byBank of America to ensure it remains solvent?
Also describe Bank of America's process for evaluating RAROC.
Be sure to include a concluding paragraph.
In this paper, please address the following questions:
Why is risk capital important to Bank of America?
What is the relationship between risk capital and Bank of America's ability to remain solvent?
What steps does Bank of America take to remain solvent? What additional steps, if any, should Bank of America take to remain solvent?
How does Bank of America use RAROC?