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Unformatted text preview: 1. Issue rules and regulations that tell the banks how to operate. a. WHY? GOAL: to ensure safety and soundness 2. EXAMINATIONS a. CAPITAL ADEQUACY: reserve b. ASSET QUALITY: loans(borrowers info) c. MANAGEMENT d. EARNING: profit wise compare to other banks of equal size- low can be a concern for failure e. LIQUILITY f. SENSITIBITY: for interest rate risk *** CAPITAL ADEQUACY, ASSET QUALITY and MANAGEMENT has to do with the safety and sound exam GOAL 1. To ensure safety and soundness 2. Promote competition 3. Consumer protection BANK HOLDING COMPANY ***Not a bank, its a corporation that owns a bank 1. Circumvent geographic restrictions 2. Branching from bank to bank ***1956 law: a bank can engage in any activity that is closely and properly related to BANKING WHAT IS BANKING? The business of providing financial services...
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This note was uploaded on 10/12/2011 for the course BUSN 3320 taught by Professor Friedman during the Fall '11 term at CUNY Brooklyn.
- Fall '11