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• Describe what is meant by bank capital and discuss how banks determine the optimal amount...

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Finance

• Describe what is meant by bank capital and discuss how banksdetermine the optimal amount of capital to hold. Since a bank’scapital is generally less than 10% of its assets, discuss how thiscompares to the average capital structure of manufacturingcorporations and explain this difference.

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Bank capital is the excess of the amount which the bank has to the amount which bank owes It is stored in the bank in the form of cash or other assets which are kept to meet the obligations which might arise in due course The    See Answer
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