- 20 Marks
ITF – APR 2024 – L3 – Q4 – Foreign Bank Accounts in Local Currency
Describe why foreign banks maintain local currency accounts abroad, how they are funded and operated, list risks, and suggest management steps.
Question
(a) Briefly describe why Foreign Banks maintain Bank Accounts in local currency abroad and how these accounts are funded and operated. [5 Marks]
(b) List the risks to a bank of Assets held in this manner. [5 Marks]
(c) What practical steps should banks employ to manage such Assets effectively? [ 10 Marks
[Total Marks 20]
Find Related Questions by Tags, levels, etc.
- Tags: Asset Management, foreign bank accounts, Funding, operation, Risks
- Level: Level 3
- Topic: Regulations to prevent fraud and money laundering
- Series: APR 2024
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