Sponsored by Junior Achievement International and Citibank

Welcome to the exciting world of money and finance! Everybody is interested in money, and bankers deal with more of it than anyone. You and your friends have just taken over a bank and are now responsible for managing all the money in it. You will learn how bankers make decisions and practice making banking decisions yourself. The most successful bankers are those that make their banks bigger than their competitors and manage to keep the most money, or profits, for themselves.  

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.