Final answer:
Asset reviews in banking consider account objectives, the beneficiary's needs, asset holdings, transactions, and future account needs, with the goal of ensuring the bank maintains a positive net worth and the ability to meet its obligations.
Step-by-step explanation:
Asset reviews will normally consider the following:
- Account objectives and beneficiary needs
- Transactions since the last review
- Asset holdings
- Future needs of the account
- All of the above
When conducting an asset review in banking, various factors are assessed to ensure the bank's sound financial position. The value of a bank's assets, such as loans and purchased U.S. Treasury bonds, are critical to this evaluation, as they directly impact the bank's net worth and ability to meet future account needs. The complexity increases when dealing with international loans or more intricate financial arrangements.