september 8 - Karina Santana September 8, 2011 U.S. Banking...

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Karina Santana September 8, 2011 U.S. Banking System: 2011: % of trillion Cash assets 14% Deposits 74% Fed fund sold 4% Demand Deposits 14% Securities 29% or more Large CD 20% Second source of liquility Savings + MMDA 66% Secondary reserves Other borrowing Earnings Assets Fed fund bought 4% Loans 48% or less Other Borrowing 8% Earning Assets Other Liability 6% Other Assets 5% Capital 8%( banks owe owners) 100% 100% “federal funds: money sold and purchased from one bank to another. They do this to maximize Cash assets Total reserves Currency + Coin Reserves at the FED Deposits at other banks Cash items in process of collection What do banks buy/ invest? - US treasury bills, note, bonds 40% - Mortgage- backed securities 40% (issued by Freddie mac and Fannie mae) - Municipal securities 10% Loans Business 20% Mortgages 50% Consumer loans 15% Other loans 15% What do banks do to supplement their income? Fee income Example: ATMS, Credit card fee, Checking fee, Mortgage related fee CAPITAL Requirement? Requiring bank owners to invest their own money into their business.
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september 8 - Karina Santana September 8, 2011 U.S. Banking...

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