Chapter 6Banks and Other Intermediaries6.1The Nature of Financial Intermediation6.2 Depository Financial InstitutionsThe deposit liabilities of these institutions form the cornerstones of the money supply.Generally speaking, commercial banks are the largest depository institutions.6.2.1 Fundamentals of bank management6.2.2 They have financial claims on both the asset and liability sides of their balance sheet.ØLiabilities represent a bank’s source of funds.ØAssets represent a bank’s uses of funds。
6.2.3 uses of bank funds1.cash assetsØReserves准备金(法定准备金和超额准备金):funds that a bank holds in the form of vault cash or deposits at the Federal Reserve.Ø应收现金项目Ø银行同业存款ernment and agency securities3.business loans4.consumer loans5.mortgage loans6.other loans7.miscellaneous assetsWhy is it that no stocks are included among bank assets?Commercial banks traditionally have barred by law from owning stocks.6.2.4 Sources of bank funds1. transactions deposits （交易存款）2. nontransactions deposits (非交易存款)Nontransactions deposits consist of domestic deposits that either have limited check-writing privileges or no check-writing privileges at all. Nontransactions deposits includes savings, time deposits3.foreign deposits4.borrowed funds5.“miscellaneous”liabilities :Øborrowings from the Federal ReserveØborrowings in the Federal funds marketØborrowings by banks from their foreign branches, their parent holding companies(银行控股公司),and their subsidiaries and affiliates.Ørepurchase agreements.6.Another source of bank funds, and one that has become increasingly important arise from the sale of assets through securitization(证券化) Securitization:pooling a group pf loans into a trust and then selling securities issued against the trust, thus transforming nontraded loans into traded securities.Asset securitization(资产证券化):Mortgage-Backed Securities-ABS 抵押支持证券Asset-Backed Securities-ABS 资产支持证券Asset-Backed-Commercial Paper-ABCP资产支持商业票据7. One source of bank funds is Equity capital, which represents the amount of ownership interest in the bank.6.2.5 Bank profitability---net interest income，interest on loans + interest on securities and investments-interest expense---service charges and fees---other operating incomenet income after taxesnet interest margin(净利息比率)：net interest margin expressed as a percent of total bank assets.Many factors affect a bank’s net interest margin.The profitability (盈利率) of banks are measured by return on assets (ROA 资产回报率)税后净利润ROA= --------------资产Return on equity(ROE股权报率回),which is net income divided by equity capital.6.2.6 Bank riskHigher returns come at expense of more risk. Banks face many kinds of risk.ØLeverage riskØcredit riskØinterest rate riskØtrading riskØliquidity risk6.3 major trends in bank management6.3.1 consolidation of banking industryHow to measure the consolidation of banking industry ?the Mcfadden act(麦克法登法案)o number of bankso the number of independent banking organizations economies of scale in bankingeconomics of scope in banking6.3.2 nontraditional bankingGlass-Steagall Act of 1933(格拉斯---斯蒂格尔法)bank holding company银行持股公司A holding company that owns one or more banks and possible other (nonbank) subsidiaries.1999年，美国国会正式通过《金融现代化法案》。
6.3.3 globalization---American Banks abroad---Foreign Banks in the United States---The Euromarket: the market for Eurodollars and Eurobonds.Eurobond is the long-term part of the Euromarket (欧洲债券是在欧洲货币市场上发行的、以市场所在国以外的货币标示的债券。
)The first Eurobond appeared in 1963 when a British investment bank underwrote a U.S. dollar-denominated bond issue for the Italian highway agency.International banking facilities (IBFs)6.3.4. main types of Eurobond:v Fixed-rate Bondv Floating Rate Notes,FRNsInterest Cap (顶盖式定息)Interest Rate Cap 上限锁住利率Interest Rate Collar上下限锁住利率v Convertible Bondv Dual-currency Bonds(双币债券)6.4 nonbank depository institutions---thrifts q savings and loan associationsq mutual savings banksq credit unionsTheir principal source of funds is consumer deposits.6.5 Nondepository Financial Institutions3.1 life insurance companies （人寿保险公司）They are structured as either stock companies（股份公司）or mutual associations（互助公司）.Policy保险单6.5.1 pension funds（养老基金）These plans come in two kinds:q defined benefit plans （限定收益计划）q defined contribution plans （限定缴款计划）6.5.2property and casualty insurance companies （财产和灾害保险公司）In US, there are more than 3000 property and casualty insurance companies.6.5.3 mutual fundsA fund that pools the investments of a large number of shareholders and purchases securities such as stocks or, in a mo ney market mutual fund, money market instruments.互助基金是通过向许多小投资者发行股份来聚合资金、并用以购买证券的金融中介。