Banks in Action

Banks in Action helps students apply their knowledge about banking. The simulation also illustrates how business decisions must be integrated in a successful banking operation. The students must thoroughly understand each element of banking interest rates on savings, credit, deposit certificates, and term loans, as well as expenditures on marketing and research and development. Success depends on coordinating decisions to develop a strategy for the bank that meets the challenges of a competitive market and sets it apart from its competitors.

Banks in Action consists of a variety of materials including computer program software documentation and a student workbook.

The Banks in Action Student Workbook introduces students to banking by describing the industry, leading students through each of the decisions they make, and helping them interpret their results.

Banks in Action was developed by Harvard Associates, Inc., an educational software development company in Cambridge, MA, USA. In conjunction with Junior Achievement International.

The present day banking system plays a key role in the development of economy in every country. Preparing competent and skillful future specialists in banking sphere is one of the best ways of developing this important branch of economy. This program is full of needed knowledge and skills for future bankers. They test their knowledge in practice and value to what extent they were able to apply their knowledge in practice and were succeeded in success. In view with competitor’s positions in banking market students will have a chance to put their banking knowledge in practice and get results. The advantage of the program is managing banks in a competitive environment and acquiring practical skills in banking activity.

JA Banks in Action lets you and your colleagues assume the role of bankers and make banking decisions. You must

• attract deposits and loan these out to borrowers
• set interest rates on these funds for short and long terms
• decide how much to spend on marketing to attract savers and borrowers to your bank
• decide how much to spend on Research and Development to lower the cost of operations

  Banks do best when they match up the money they have on deposit with the money they have loaned out. A bank's deposits that have not been loaned out have to be stored at the Central Bank at a low interest rate, lower than what the bank is paying. If a bank loans more money than it has available on deposit, it must borrow the difference from the Central Bank at a high interest rate, higher than what the bank receives on its loans. Profitable banks keep deposits and loans matched up. The most profitable banks are those that keep their deposits and loans in balance while making both grow.

  You will operate your bank over time by making decisions several times, each of which represents three months or a calendar quarter. Your competitors are doing the same thing. All of the banks start out equal. The banking team that develops the best strategy and makes more money than its competitors will be the winner!