{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

BANKSCLASS - Banking Basics Structure Management Commercial...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Banking Basics: Structure, Management Commercial Bank Balance Sheet Sources and uses of funds Bank production process Asset transformation Provision of services Leverage Bank Management Concepts 1 Liquidity Management Asset Management Liability Management Capital Management Credit Risk Management Interest Rate Risk Management Trading Risk Banking Crises In The News 2 Course Issues Midterm qs? Course ideas – Fri (starts 11/7) Extra Credit Wiki Projects - coming 3 coming investment game catch up
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Banking 4 Banks (aka Depository Institutions) Depository Institutions Financial intermediary S->I Deposits -> loans, securities Financial deregulation, innovation, globalization Commercial Banks $11 5 trillion in Assets 5 Commercial Banks - $11.5 trillion in Assets 80% of bank assets Role in money creation and monetary policy Thrifts – Saving and Loans, Mutual Savings Banks, Credit Unions (and retail banks) What Do Banks Do? Earnings from Interest rate spreads, fees, other Asset transformation savings deposit loan borrow short- lend long Lower transactions costs Information etc 6 Information, etc Deal With Asymmetric Information Problems adverse selection Credit checks, screening, relationships moral hazard Compensating balances, relationships
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern