Learning objectives After studying this course the learner should be able to: 1. Describe the context of banking: the financial system. 2. Explain the principles of banking. 3. Elucidate the broad functions of banks. 4. Analyse and explain the basic raison d’etre for banks. 5. Describe the components of the balance sheets of banks. 6. Elucidate the liability and asset portfolio management “problem” of banks.