《银行管理》word版.doc

1、现金资产（cash assets）:cash assets are held to meet customer withdrawals and legal reverse requirements or to purchase services from other financial institutions. Banks attempt to minimize cash holdings because they do not earn interest. P1232、核心存款(core assets):core deposits are stable deposits that are typically not withdraw over short periods of time. P1033、易变性存款(volatile liabilities): equal the difference between actual current deposits and the base estimate of core deposits. They are a banks highly rate sensitive deposits that customers withdraw as interest rates vary或difference between actual outstanding deposits and core deposit; represents balances with a high probability of being withdrawn.4、流动性资产(liquid assets): liquid assets is one that can be easily and quickly converted into cash with minimum loss, which consist of unpledged, marketable short-term securities that are classified as available-for-sale, plus federal funds sold and securities purchased under agreement to resell. P123或a liquid asset is one that can be easily and quickly converted into cash with minimum loss.P5085、操作风险（operational risk）: operational risk refers to the possibility that operating expenses might vary significantly from what is expected, producing a decline in net income and firm value.P1256、负担(burden) Burden=Noninterest expense-Noninterest income.Net Overhead Expense=(Noninterest expense-Noninterest income)/Average assetsThe smaller its burden and net overhead, the better a bank has performed on trend and versus peers.P2017、转移帐户(sweep account):a sweep account is an account that enables a depository institution to shift funds from transaction accounts, which are reservable, to MMDAs or other accounts, which are not reservable. P5118、利率敏感性资产（rate-sensitive assets）RSAs: the dollar value of assets that either mature or can be repriced within a selected time period, such as 90 days. P2939、利率敏感性负债(rate-sensitive liabilities)RSLs: the dollar value of liabilities that either mature or can be repriced within a selected time period, such as 90 days.P293 10、持续期缺口(Burden) Burden=Noninterest expense-noninterest incomeNet overhead expense=(noninterest expense-noninterest income)/average assetsThe smaller its burden and net overhead, the better a bank has perform on trend and versus peers.11、信贷风险(credit risk): credit risk is associated with the quality of individual assets and the likelihood of default. P11912、代理银行(correspondent banking): correspondent banking is the system of interbank relationships in which one bank sells services to other financial institutions.P526或a bank that provides services, typically check clearing, to other banks.P86813、联邦基金(federal funds)Unsecured short-term loans that are settled in immediately available funds.14、债券回购协议(security purchase agreement )RPs : security purchase agreement are short-term loans secured by government securities that are settled in immediately available funds.15、久期(duration gap):The weighted duration of assets minus the product of weighted duration of liabilities and the ratio of total liabilities to total assets. DGAP=DA-(MVL/MVA)DL课后练习第三章 P99 1、What are the major categories of bank assets and their approximate percentage contribution to total resources? What are the major categories of bank liabilities? What are the fundamental differences between them?1、Bank assets fall into one of four general categories: loans, investment securities ,Noninterest cash and due from banks, and other assets.(1)Loans are the major asset in most banks portfolios and generate the greatest amount of income before expenses and taxes.(2)Investment securities are held to earn interest, help meet liquidity needs, speculate on interest rate movements, meet pledging requirements, and serve as part of a banks dealer functions. (3)Noninterest cash and due from banks consists of vault cash, deposits held at Federal Reserve Banks, deposits held at other financial institution, and cash items in the process of collection.(4) Other assets are residual assets of relatively small magnitudes.Bank liabilities:1、demand deposits 2、NOW 、ATS accounts、Money Market Deposit Accounts(MMDAs) 3、Savings and time deposits 4、Deposits held in foreign offices 5、Subordinated notes and debentures.The fundamental difference between them: Assets indicate what the bank owns, liabilities represent what the abnk owes, and equity refers to the owners interest such that:Assets=Liabilities+EquityP1052、Banks typically differentiate between interest and noninterest income and expense .what are the primary components of each ? define net interest income and burden. what does a banks efficiency ratio measure ?2、(1)interest income is the sum of interest and fees earned on all of a banks assets, including loans, deposits held at other institutions, municipal and taxable securities, and trading account securities.(2) Interest expense is the sum of interest paid on all interest-bearing liability, include transactions accounts, time and savings deposits, short-time noncore ; liabilities ,and long-time debt.(3)Noninterest income is becoming increasingly important because of pricing pressure on net interest income.(4) Noninterest expense is composed primarily of personnel expense, which includes salaries and fringe benefits paid to bank employees, occupancy expense from rent and deprecration on equipment and premises and other operating expense, including technology expenditures ,utilities ,and deposit insurance premiums. NII=II-IE6、ROE=(Net income/Average total assets)*(Average total assets/Average total equity)=ROA*EM第五章 P210 1 1、 When confronted with runaway noninterest expense ,managements first impluse is to cut costs.what are the advatages and disadvatages of this approach? What other approaches are possible?(1)expense reduction: many banks begin cost management efforts by identifying excessive expenses and eliminating them. Given that Noninterest expenses consist primarily of personnel, occupancy, and data processing costs, these are the areas where cuts are initially made.Because of the high cost of employee benefits, many banks use temporary workers who do not receive health insurance coverage and other benefits.(2)operating efficiencies(3)revenue enhancement(4)contribution growth P200 33、What are the components of noninterest expense?Noninterest expense:1、personnel expense, 2、occupancy expense 3、other operating expenseP202 44、Describe why the efficiency ratio is a meaningful measure of cost control?Efficiency ratio=Noninterest expense/(net interest income+ noninterest income)The more efficient banks are presumably those with the lowest efficiency ratios. The intuition is that the ratio measures the amount of Noninterest expense a bank pays per dollar of operating revenue, with a smaller number better.第八章P294 2Are the following assets rate sensitive within a six-month time frame? Explain A、3-month T-bill (yes)B、federal fund sold(daily repricing) (yes)Any assets or liability that matures will be repriced because the bank must reinvest the proceeds from the asset and/or must reset the deposit rate or replace the maturing liability at prevailing rates.C、2-year Treasury bond with semiannual coupon payments (yes)D、4-year fully amortized car loan with $450 monthly payments including both principal and interest (yes)Any principal payment on a loan is rate sensitive if management expects to receive it within the time interval.E、commercial loan priced at the banks prime rate plus 2 percent (yes)The loan is rate sensitive in the sense that its yield can change at any time, even daily, but its effective rate sensitivity depends on how frequently the index actually changes.3 a P296 (1) P297 (2) P298 b P306 1010、Management at bay bank expects its net interest margin to equal 4.8% during the next year .it will allow variation in NIM of just 10% during the year and expects interest rates to either rise or fall by 2% . if management expects the bank to have $400 million in earning assets,determine how large its 1-year cumulative GAP can be to not exceed the allowable variation in NIM.Target GAP/Earning assets=(Allowable%change in NIM)(Expected NIM)/Expeced%change in interest rates第十二章 P425 2 2、 Indicate how a banks core deposits differ from its hot money or volatile liabilities in terms of interest elasticity . what fators are relatively more important to attracting and retaining core deposits as compared to purchase funds？(1) conceptually, core deposits are stable deposits that customers are less likely to move when interest rates on competing investments rise. They are not as rate sensitive as large-denomination purchased(volatile)liabilities.(2) Due to highly competitive factors, including the high returns paid by mutual funds, banks have had to pay very attractive rates on small time deposits(less than $100,000) Bank use the term volatile liabilities to describe purchased funds from rate-sensitive investors. investors in these instruments will move their funds if other institutions pay higher rates or if it is rumored that the issuing bank has financial difficulties.P454 88、Many banks compete aggressively for retail time deposits .what marketing strategies will attract large volumes of deposits from individuals? Why are retail deposits attractive to banks?Why:To reduce interest rate risk and the long-term cost of bank funds, is to aggressively compete for retail core deposits .Individuals are generally not as rate sensitive as corporate depositors. Once a bank attracts deposit business, many individuals will maintain their balances through rate cycles as long as the banks provide good service and pay attention to them.P450 17 17、The weighted marginal cost of funds is used in pricing decisions Explain how it should be used if the loan being priced exhibits average risk.How should the weighted marginal cost of funds be used if the loan carries above-average risk?(1) the bank should charge enough percents on loans(assets of average risk to cover the marginal costs of debt and pay share holders a reasonable return.(2) The bank should add a risk premium for loans of greater than average default risk to compensate for the increased probability of greater charge-offs第十三章 P464 1、What are the advantages and disadvantages of using finacial leverage? Answer from the bankers view and then from a bank regulators view .High financial leverage, however, increases the relative riskiness of operations by providing less protection to creditors upon liquidation of the firm. Bankers also recognize that high leverage increases potential profitability. So they attempt to minimize external equity financing. Regulators, in contrast want to increase bank equity financing and focus on balancing solvency risks with an individual banks profit potential.2、Provide the general outline of existing risk-based capital requirements .Is there a difference between default risk,interest rate risk ,and liquidity risk?P466 2A banks tier 1 capital must equal no less than 4% of risk-weighted assets, total capital must equal at least 8 percent of risk-weighted assets, and leverage capital must equal no less than 3% of adjusted total assets.Different “Capital Requirements for Interest Rate Risk” and “Capital Requirements for Market Risk Using Internal Models.”11、A bank has decided it must raise external capital .Discuss the advantages and disadvantages of each of the following choices:a. subordinated debt at 7.7%b.preferred stock at a 10% dividend mon stockP489-491Subordinated debt offers several advantages to banks. 1 Most important, interest payments are tax deductible, so the cost of financing is below that for equity sources.2 Furthermore, this type of debt generates additional profits for shareholders as long as earnings before interest and taxes exceed interest payments.Shortcomings:1 interest and principal payments are mandatory an, if missed, constitute default.2 in addition, many issues require sinking funds that increase liquidity pressures as banks allocate funds to repay principal.3 Finally, from the regulators perspective, debt is worse than equity because it has fixed maturities and banks cannot charge losses against it.Preferred stock1 Investors claims are senior to those of common stockholders.2 corporate investors in preferred stock pay taxes on only 20 percent of dividends.3 when new equity issues dilute earnings, the earning dilution is less with perpetual preferred stock than with common stock, so the cost of common share is relatively higher.1 aggregate dividend payments on preferred stock will be less than dividend on common stock over time for any bank that regularly increases common stock dividends.2 the same disadvantages as common stock.Common1 has no fixed maturity and represents a permanent some of funds.2 are discretionary, do not require fixed charges against earnings.1 are not tax deductible, must be paid out of after-tax earnings.2 variable in the sense that shareholders expect pershare dividend rates to rise with increases in bank earnings.3 transactions costs on new issues exceed comparable costs on debt. 4 most firms wait until share prices are high and earnings performance is strong before selling stock.P474 1212、What is the leverage capital ratio and why do regulators specify a minimum for it ?1 leverage capital ratio, defined as Tier 1 capital divided by total assets net of goodwill, other disallowed intangible assets, and disallowed deferred tax assets.