Activity in the financial markets

The risks assumed by banks, carrying out operations with financial instruments, including liquidity risk, credit risk, foreign exchange and interest rate risk, etc. Increased competition in the banking market leads to increased risks that accompany the activities of banks. In a society with a market economy there is an urgent need to maintain the reliability of banks, their solvency and liquidity, to limit the risk inherent in various activities of the bank. Bankruptcy of banks, financial crises are very painful impact on the state of the economy and society. After all, most individuals and businesses use the services of the bank or the depositors, or borrowers. The contributors are primarily interested in preserving the bank invested in cash and in getting them a decent income. Bank customers in the event they need to borrow must have confidence in the bank's ability to provide such loans. The success of the bank depends on the level of credibility among potential investors and borrowers. The correctness of their decision-making at the option of the bank's own investments and trends requires high quality information about economic and financial activities of the bank, as well as disclosure of the extent of existing and future risks that have faced or may face bank soon. Topic: The role of accounting in the management of the bank, its types and destination