Week 10 Lecture - Week 10. Nonbank Financial Institutions...

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Week 10. Nonbank Financial Institutions 1203AFE Money, Banking and Finance Chapter 13 Monday 6 October 2008
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Last Lecture. . Commercial Banks 14 Australian Banks – ‘four pillar’ policy Sources and Uses of funds Loan Pricing Off balance sheet items Banks’ performance – ROA and ROE Liquidity Risk Asset management Liability management Credit Risk Management Capital Management
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MCQ from Ch.12 1. Credit scoring a) is an objective method in analysing a potential borrower's character. a) determines the credit worthiness of a potential borrower b) is how to determine the credit score of a potential borrower. c) determines the value of the loans sold to investors. 2. A line of credit is a) credit guaranteed to a potential borrower. b) legal commitment on the part of the bank to make credit available to a potential borrower a) credit available to a potential borrower at a discount b) an agreement under which a bank customer can borrow up to a predetermined limit for a short term.
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3. A bank expecting interest rates to rise in the future would prefer to make a) fixed-rate loans b) long-term, fixed rate loans c) floating rate loans adjusted infrequently d) floating rate loans adjusted frequently 4. Credit analysis a) determines when to sell loans to investors. b) determines when to bring loan customers together to share funds. c) determines the credit worthiness of borrowers. d) assists customers in selling their real estate. MCQ from Ch.12
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Objectives It is the purpose of this lecture to help you to: Identify and discuss the different nonbank financial institutions in Australia: Building societies Credit unions Finance companies Characteristics Function Operations Organisational structure
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Nonbank Financial Institutions (NBFIs) Nonbank financial institutions include: Building societies: specialise in making mortgage loans. Credit unions: specialise in short-term consumer loans Finance companies: specialise in making loans to consumers and businesses.
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This note was uploaded on 06/09/2009 for the course ACCOUNTING 1203AFE taught by Professor Ms.mirellamalin during the Three '08 term at Griffith.

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Week 10 Lecture - Week 10. Nonbank Financial Institutions...

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