It's a desk information system by which Bank can monitor the flow of its fund. If a bank has a lot of money on deposit in checking accounts, savings, and CD's then the cost of funds is whatever rate they are paying. The mean of deposit are from within a bank or borrowed funds acquired from other banks.
This application of PIBAS provides measurement of earning power of assets. The ratio reveals the firm's profitability on its business operations and thus serves to measure management's effectiveness.
Bank can review their: lending and borrowing, their rates of lending and borrowing, Banks accruals of expense and income and how their investment performing in the market.
Risk management is a set of services, rather than a specific product, aimed at controlling financing risk, including credit risk, and interest rate risk, through hedging devices, financial futures, and interest rate caps. The aim is to control corporate funding costs, budget interest rate expense, and limit exposure to interest rate fluctuations.
