BMGT 445 lecture 2

BMGT 445 lecture 2 - BMGT445 Lecture 2 Financial System...

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Click to edit Master subtitle style 3/1/11 BMGT 445 Professor Ethan Cohen-Cole Lecture 2: Financial System Overview
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3/1/11 Key concepts What’s special about financial institutions Maturity transformation Liquidity management Credit Risk transfer (across people, across time, etc) Key types of companies Depository Securities
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3/1/11 What’s special?
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3/1/11 Brokers Asset Transformers Information Costs Liquidity and Price Risk Special Services Monetary Policy Brokerages Before brokers, you had to go directly to the company to buy in. i.e. you don’t have to go to CT to buy a
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3/1/11 OLD BANKING: Banks lend money to firms Take deposits from you (checking, etc.) Brokers Asset Transformers Information Costs Liquidity and Price Risk Special Services Monetary Policy Credit Allocation Wealth Transfer Payment Services
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3/1/11 The bank helps you collect information Let’s say that you want to give a loan to 50 companies, or 1000 Brokers Asset Transformers Information Costs Liquidity and Price Risk Special Services Monetary Policy Credit Allocation Wealth Transfer Payment Services
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3/1/11 Read book Brokers Asset Transformers Information Costs Liquidity and Price Risk Special Services Monetary Policy Credit Allocation Wealth Transfer Payment Services
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3/1/11 Maturity transformatio n Brokers Asset Transformers Information Costs Liquidity and Price Risk Special Services Monetary Policy Credit Allocation Wealth Transfer Payment Services
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BMGT 445 lecture 2 - BMGT445 Lecture 2 Financial System...

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