Commercial banks account for the largest share of assets of financial institutions and have grown significantly over the past three decades.

(a) Describe the major function of commercial banks, then briefly explain what has facilitated the increase in the dominance of commercial banks since the 1980's.

(b) Provide a brief discussion of the three types of risk under Pillar 1- Capital Adequacy as it applies to commercial banks in Australia. In your answer explain what type of risk fraud constitutes.

Answer rating: 100% (QA)

a The major function of commercial banks is to act as intermediaries between depositors and borrowers They provide a wide range of financial services to individuals businesses and governments The key ... View the full answer