The Directors Education Series: Purpose, Function and Operations of Banks

Banks are quite different than other types of organizations. Understanding the purposes, functions and operations of Banks are essential for the proper management of any financial institution. This presentation introduces key concepts in understanding how banks operates.

The presentation covers the overall goal of banks and key management positions required in banks of various sizes. It explains how banks are arbiters of risk and providers of credit to all types of borrowers including Consumers, Businesses, other Banks and even the Government. Leverage is also a factor to consider in the operations of a bank and the primary reason why regulation is necessary for financial institutions.

The presentation reviews the primary Risks that poses the greatest threat to financial institutions including Credit and Liquidity Risks and the key ratios and process required to monitor and control their levels.  

Topics Include:
  • Management: Roles & Structure
  • Banks and the Economy
  • How Are Banks Different From Other Operating Entities?
  • Why Banks Fail
  • CAMELS Ratings
  • Income & Balance Sheets
  • Risks
    • Leverage & Risk
    • Interest Rate Risk
    • Credit Risk
  • Allowance for Loan and Lease Losses (ALLL)
  • Key Ratios

Subscribe to The Directors Education Series and provide your leaders with the guidance and tools needed to navigate the complexities of today's banking environment.

training features:

  • Includes Audio, Video and Powerpoint. 
  • PDF Handouts
  • Discussion Questions
  • 20-25 minutes in length (Perfect to show at your monthly board meeting!)

This program is a breakout session from the Directors Education Series, which is a subscription based Library containing over 45 trainings specifically for your Board of Directors. For more information on the Directors Education Series click on or go to You can email questions to or talk with a representative by calling 1-800-831-0678.

Who Should Attend?

This program is recommended for your Compliance, Operations, Risk Management and Executive staff including every member on your Board of Directors.