《银行管理》chapter03课件

Chapter3

Analyzingbankperformance:usingtheUBPRP93—1672023/7/231Contents♞CommercialBankFinancialStatements（P95-109）♘TheRelationshipbetweenBS&IS（P109-110）♞TheReturnonEquityModel（P110-117）♘BankingRiskandReturns:Trade-off（P118-127）♞MaximizingtheMarketValueofEquity（P127-128）♘EvaluatingBankPerformance（P128-140）♞CamelsRatings（P140-141）♘Performancecharacteristicsofbanks（P141-143）♞FinancialStatementManipulation（P144-147）Chapter3Likeotherfinancialintermediaries,commercialbanksfacilitatetheflowoffundsfromsurplusspendingunits(savers)todeficitspendingunits(borrowers).Threecharacteristicsstandout.①②③§1FinancialstatementsP95-—Chapter3(1)ThebalancesheetAbank’sbalancesheetpresentsfinancialinformationcomparingwhatabankownswithwhatitowesandtheownershipinterestofstockholders.P96-—Assets=Liabilities+EquityChapter3BankAssetsLoansInvestmentsecuritiesNoninterestcashandduefrombanksOtherassetsP99-—Chapter3LoansRealestateloansCommercialloansLoanstoindividualsAgriculturalloansOtherloansindomesticofficesLoansandleasesinforeignofficesP99-—GrossLSNetLSChapter3InvestmentsecuritiesShort-termsecuritiesLong-termsecuritiesP100-—Chapter3NoninterestcashandduefrombanksVaultcashDepositsheldatFederalReserveBanksDepositsheldatotherfinancialinstitutionsCashitemsintheprocessofcollection(CIPC)P101-—Chapter3OtherassetsCustomer’sliabilitytothebankunderacceptancesThedepreciatedvalueofbankpremisesandequipmentOREOInvestmentinunconsolidatedsubsidiariesInterestreceivablePrepaidexpensesP101Chapter3LiabilitiesDemanddepositsNOWaccountATSaccountMMDAsSavingsdepositsTimedepositsBrokereddepositsDepositsheldinforeignofficesP102-—SubordinatednotesanddebenturesAcceptanceoutstandingothersFederalFundspurchasedResaleCommercialpaperChapter3Whatarecoredeposits?Theyconsistofdemanddeposits,NOWandATSaccounts,MMDAs,savings,othersavingsandtimedepositslessthan$100,000.P103………stabledeposits…………theownersarenothighlyratesensitive………relativelycheap………….Chapter3Whatarenoncoreliabilities?TheyconsistofjumboCDs,depositsinforeignoffices,federalfundspurchased,RPs,andotherborrowingswithmaturitiesoflessthanoneyear.………highlyrate-sensitive………issuedindenominationsabovetheamountthatisfederallyinsured………….P103Chapter3Stockholder’sequityCommoncapitalPreferredcapitalP103Chapter3(2)TheincomestatementAbank’sincomestatementreflectsthefinancialnatureofbanking,asinterestonloansandinvestmentscomprisesthebulkofrevenue.P104-—Chapter3Netinterestincome=interestincome–interestexpenseBurden=noninterestexpense–noninterestincomeEfficiencyratio=noninterestexpensenetinterestincome+noninterestincomeNetincome=netinterestincome–burden–provisionsforloanlosses+securitiesgains–taxesP105Chapter3InterestincomeInterestexpenseNoninterestincomeNoninterestexpenseProvisionsforL&LlossesRealizedsecuritiesgainsNetincomeP105—Chapter3Content♞CommercialBankFinancialStatements（P95-109）♘

TheRelationshipbetweenBS&IS（P109-110）♞TheReturnonEquityModel（P110-117）♘BankingRiskandReturns:Trade-off（P118-127）♞MaximizingtheMarketValueofEquity（P127-128）♘EvaluatingBankPerformance（P128-140）♞CamelsRatings（P140-141）♘Performancecharacteristicsofbanks（P141-143）♞FinancialStatementManipulation（P144-147）Chapter3§2

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TheReturnonEquityModel（P110-117）♘BankingRiskandReturns:Trade-off（P118-127）♞MaximizingtheMarketValueofEquity（P127-128）♘EvaluatingBankPerformance（P128-140）♞CamelsRatings（P140-141）♘Performancecharacteristicsofbanks（P141-143）♞FinancialStatementManipulation（P144-147）Chapter3§3

TheReturnonEquityModelIn1972,DavidColeintroducedaprocedureforevaluatingbankperformanceviaratioanalysis.P110-111▒Exhibit3.5Chapter3TheUniformBankPerformanceReportTheUniformBankPerformanceReportisacomprehensiveanalyticaltoolcreatedbytheFDICfromtheFFIECquarterlyCallReportsforbanksupervisorypurposes.ThedatacontainsintheUBPRconsistofthreetypes:BANK,PEERandPCT.P111-112Chapter3ProfitabilityanalysisP112-113ROE=NetIncome/AveragetotalequityNetIncomeAveragetotalequityAveragetotalassetsROE=Averagetotalassets=ROAEM

Chapter3ExpenseratioandassetutilizationP113-114ROA=NIaTA=TRaTAEXPaTA––TaxesaTANI=TR

–EXP–TaxesROA=AU–ER–TAXChapter3P114-117ROA=AU–ER–TAXER=EXPaTA=IEaTAOEaTA＋＋PLLaTAAU=TRaTA=IIaTAOIaTA＋＋SGaTAChapter3ROEmodelROEROAEMERTAXAUIEOEPLLIIOIChapter3OtheraggregateprofitabilitymeasuresInterestIncomeAverageinterest-bearingliabilitiesAverageearningassetsSPRD=InterestExpense﹣NIM=Netinterestincome/AverageearningassetsaTABurdenratio=NoninterestExpense-NoninterestincomeEfficiencyratio=NoninterestexpenseNetinterestincome+NoninterestincomeChapter3Contents♞CommercialBankFinancialStatements（P95-109）♘TheRelationshipbetweenBS&IS（P109-110）♞TheReturnonEquityModel（P110-117）♘

BankingRiskandReturns:Trade-off（P118-127）♞MaximizingtheMarketValueofEquity（P127-128）♘EvaluatingBankPerformance（P128-140）♞CamelsRatings（P140-141）♘Performancecharacteristicsofbanks（P141-143）♞FinancialStatementManipulation（P144-147）Chapter3§4BankingrisksandreturnsP118—

Riskmanagementistheprocessbywhichmanagersidentify,assess,monitor,andcontrolrisksassociatedwithafinancialinstitution’sactivities.Chapter3TypesofrisksCreditRiskLiquidityRiskMarketRiskOperationalRiskReputationRiskLegalRisk……………P118—Chapter3CreditriskCreditriskisassociatedwiththequalityofindividualassetsandthelikelihoodofdefault.Grossloanlosses(charge-offs),Recoveries,Netlosses(netcharge-offs),Past-dueloans,Nonperformingloans,Nonaccrualloans,Totalnoncurrentloans,Restructuredloans,Classifiedloans,………P119—Chapter3LiquidityRiskLiquidityriskisthecurrentandpotentialrisktoearningsandthemarketvalueofstockholders’equitythatresultsfromabank’sinabilitytomeetpaymentorclearingobligationsinatimelyandcost-effectivemanner.Fundingliquidityrisk,Marketliquidityrisk,Liquidity,………P122—Chapter3MarketRiskMarketRiskisthecurrentandpotentialrisktoearningsandstockholders’equityresultingfromadversemovementsinmarketratesorprices.Thethreeareasofmarketriskare:interestrateorreinvestmentraterisk,equityorsecuritypricerisk,andforeignexchangerisk.P124—Chapter3OperationalRiskOperationalRiskreferstothepossibilitythatoperatingexpensesmightvarysignificantlyfromwhatisexpected,producingadeclineinnetincomeandfirmvalue.TheBaselCommitteedefinesoperationalriskas“theriskoflossresultingfrominadequateorfailedinternalprocesses,people,andsystems,orfromexternalevents.P125—Chapter3LegalandReputationRiskLegalriskistheriskthatunenforceablecontracts,lawsuits,oradversejudgmentscoulddisruptornegativelyeffecttheoperations,profitability,condition,orsolvencyoftheinstitution.Reputationriskistheriskthatnegativepublicity,eithertrueoruntrue,adverselyaffectsabank’scustomerbaseorbringsforthcostlylitigation,hencenegativ