Lesson Plan

• Describe the three core objectives of commercial banks: liquidity, security, and profitability.
• Explain how banks manage liquidity through asset selection and liquidity ratios.
• Analyze the risk‑management and security measures banks employ to protect assets.
• Calculate basic profitability using revenue and cost components.
• Evaluate the trade‑offs among liquidity, security, and profitability in banking decisions.

• Projector or interactive whiteboard
• Slide deck covering liquidity, security, profitability
• Handout with profit equation and sample data
• Worksheet with case‑study scenarios
• Calculator or spreadsheet software
• Whiteboard markers

Begin with a quick scenario: “What would happen if a bank could not meet a sudden surge of withdrawals?” Connect this to students’ prior knowledge of basic banking functions. Explain that today they will identify the three key objectives banks must balance and how success will be measured by their ability to explain, calculate, and evaluate each objective.

1. Do‑Now (5'): Think‑pair‑share on consequences of a bank run; record key ideas.
2. Mini‑lecture (10'): Present the three objectives with real‑world examples using slides.
3. Guided practice (12'): Calculate a liquidity ratio from provided data on the worksheet.
4. Group activity (10'): Analyse a security case study; discuss risk‑management frameworks.
5. Profitability exercise (10'): Use the profit equation to compute profit for a sample bank.
6. Synthesis discussion (8'): Whole‑class debate on how banks balance the three objectives, referencing the triangular diagram.
7. Check for understanding (5'): Exit ticket – list one strategy to improve each objective.

Summarise how liquidity, security, and profitability interrelate and why banks must constantly trade off these goals. Collect exit tickets as a quick retrieval check. For homework, ask students to locate a recent annual report of a commercial bank and identify specific actions the bank takes to address each of the three objectives.