Briefly explain the general characteristics of a Bank. Describe the risk characteristics of a Bank and discuss the role of Management Control System in containing risk of a Bank.

General Characteristics of a Bank:

A bank is a financial institution that primarily engages in intermediation activities, serving as a link between borrowers and savers. Here are some general characteristics of a bank:

1. Acceptance of Deposits: Banks accept deposits from individuals, businesses, and other entities. These deposits form the foundation of a bank's funding base, which they then utilize to extend loans and other financial services.

2. Lending and Credit Creation: Banks lend money to borrowers in the form of loans, mortgages, and credit lines. Through this lending process, banks facilitate economic activities by providing funds for investments, consumption, and other purposes.

3. Financial Intermediation: Banks act as intermediaries between those who have surplus funds (depositors) and those who need funds (borrowers). By pooling deposits and allocating them to creditworthy borrowers, banks facilitate _________ _______ ___ ___ ____ _______ _____.
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