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Graph the main sources of funding for two commercial banks or a group of banks in two jurisdictions in the Caribbean, Discuss the likely associated risks of their funding structure
Graph the main sources of funding for two commercial banks or a group of banks in two jurisdictions in the Caribbean, Discuss the likely associated risks of their funding structure
Expert Solution
Antugua Commercial Bank and National Commercial bank of Anguilla have seen majority of funding from foreign direct investment as well as donestic investors and Stake sale from Central bank. However key risks involved here is exchange rate risk and political risk pertaining to change sin government policies on FDI and FII and DII. Moreover, rise is losses of these banks can degrade the market valuation which would lead to lower amount during stake sale and raising money through debt markets.
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