RB102 Retail Banking Overview
This module covers an extensive overview of retail banking, from viewing banks as financial intermediaries to considering the roles that a retail bank serves in the real economy. We also consider the typical sources of funding (i.e., the liability side of the balance sheet) that include retail deposits and wholesale funding. Later, we consider the asset side of the balance sheet that includes products and the risks embedded in the banking book and trading book. Next, we present an analysis of the income statement showing that net interest margin is the main source of income for a retail bank. We also show, as is typical for any people business, that staff costs dominate operating costs. Finally, the module concludes with the calculation of common retail banking metrics such as net interest margin (NIM), net interest spread (NIS), return on equity (ROE) and cost income ratio (CIR).
• Implement measures to fulfill the bank’s prudential responsibilities and to maintain the bank’s sustainability.