卧的贸易孝 1951 Chapter 7 The Effective Use of Capital
Chapter 7 Chapter 7 The Effective Use of The Effective Use of Capital Capital
The function of bank capital ▣Reduce bank risk. ▣Three basic ways: A cushion to absorb losses and remain solvent Increases the proportion of allowable problem assets that can default before equity is depleted. A ready access to financial markets and thus guards against liquidity problems Constrains growth and limits risk taking 爸封强的黄香+孝
The function of bank capital The function of bank capital Reduce bank risk. Three basic ways: A cushion to absorb losses and remain solvent Increases the proportion of allowable problem assets that can default before equity is depleted. A ready access to financial markets and thus guards against liquidity problems Constrains growth and limits risk taking
Impact of loan loss on capital Assets Liabilities Loans:60 Deposits:80 Other:40 Borrowings:16 Capital:4 Total:100 Total:100 藏的数香大孝
Impact of loan loss on Impact of loan loss on capital capital Capital ： 4 Total ：100 Total ： 100 Other ：40 Borrowings ：16 Loans ：60 Deposits ：80 Assets Liabilities
Balance Sheet of Big Four: 2002/12/31 Assets Liabilities 100m % 100m % Loans 81,549 60.2 Deposits 110,252 81.4 Other 53,946 30.8 Borrowings 20,162 14.9 Capital 5,082 3.8 Total 135,495 100 Total 135,495 100 猫剥1隆竹對+号
Balance Sheet of Big Four: Balance Sheet of Big Four: 2002/12/31 2002/12/31 Assets Liabilities 100 m % 100m % Loans 81,549 60.2 Deposits 110,252 81.4 Other 53,946 30.8 Borrowings 20,162 14.9 Capital 5,082 3.8 Total 135,495 100 Total 135,495 100
US banks:Capital/Assets(%) 12 10.1 10 8.27 8.42 8 6.17 7.64 6 4.42 6.76 19871988198919901991199219931994199519961997199819992000 -All-10 Largest-Beyong 1000 麓行贺影≠考
US banks: US banks: Capital/Assets Capital/Assets(%) 6.17 8.42 6.76 4.42 7.64 8.27 10.11 4 6 8 10 12 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 All 10 Largest Beyong 1000