货币银行学货银课件chap06banking

1、Chapter 6BankingBanking balance sheet businessOff-balance sheet activities (OBSA)AssetLiabilityOBSA in a narrow scence Inter-businessTable 1 Balance Sheet of All Commercial Banks (items as a percentage of the total, December 2008)The Bank Balance SheetLiabilitiesCheckable depositsNon-transaction dep

2、ositsBorrowingsBank capital Bank Capitalstock (common stock and preferred stock) SurplusUndivided profits (retained earnings) Reserves Debentures Deposits1.Checkable Deposits (Transaction Deposits ) no-interest-bearing checking accounts: demand deposits interest-bearing checking accounts: NOW (negot

3、iable orders of withdrawal ) ATS (automatic transfers from savings) MMDAs (money market deposit accounts) Deposits2. Non-transaction Deposits Savings account Time deposits Small-denomination time deposits($100,000) large-denomination time deposits( $100,000)BorrowingsBorrowings from The Central Bank

4、Borrowings from other bank and financial institutionsRepurchase agreementsBorrowing of EurodollarsAssets (uses of funds)loanCash itemsOther assetssecuritiesThe Bank Balance SheetAssetsReservesCash items in process of collectionDeposits at other banksSecuritiesLoans Other assetsBasic Banking: Cash De

5、positOpening of a checking account leads to an increase in the banks reserves equal to the increase in checkable depositsFirst National BankFirst National BankAssetsLiabilitiesAssetsLiabilitiesVault Cash+$100Checkable deposits+$100Reserves+$100Checkable deposits+$100Basic Banking: Check DepositFirst

6、 National BankSecond National BankAssetsLiabilitiesAssetsLiabilitiesReserves+$100Checkable deposits+$100Reserves-$100Checkable deposits-$100First National BankAssetsLiabilitiesCash items in process of collection+$100Checkabledeposits+$100Basic Banking: Making a ProfitAsset transformation: selling li

7、abilities with one set of characteristics and using the proceeds to buy assets with a different set of characteristicsThe bank borrows short and lends longFirst National BankFirst National BankAssetsLiabilitiesAssetsLiabilitiesRequired reserves+$100Checkable deposits+$100Required reserves+$100Checka

8、ble deposits+$100Excess reserves+$90Loans+$90Inter-businessBank settlement settlement instrument check, draft and promissory notes terms of settlement settlement by remittance settlement by collection settlement by letter of credit Finance leaseFiduciary businessSafe deposit boxLetter of creditIssui

9、ng Bank/Buyers BankSeller/BeneficiaryAdvising Bank/ Negotiating BankBuyer/ApplicantOff-Balance-Sheet ActivitiesLoan sales (secondary loan participation)Generation of fee e. Examples:Servicing mortgage-backed securities.Creating SIVs (structured investment vehicles) which can potentially expose banks to risk, as it happened in the subprime financial crisis of 2007-2008. A guarantee of payment issued by a bank on behalf of a client that is used as “payment of last resort” should the client fail to fulfill a co