Chapter 7DepositoryInstitutions:Banks and BankManagementMcGraw-Hil/rwinCopyright 2006byTheMcGraw-Hill Companies,Inc.All rights reserved
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Depository Institutions: Banks and Bank Management
CONTENSa7.1BankBalance Sheet7.2BankRisk12-2
12-2 CONTENS •7.1 Bank Balance Sheet 7.2 Bank Risk
7.1 The Balance Sheet ofOCommercial Banks1. Balance Sheet IdentityTotal Bank Assets = Total Bank Liabilities +BankCapital12-3
12-3 7.1 The Balance Sheet of Commercial Banks • 1. Balance Sheet Identity • Total Bank Assets = Total Bank Liabilities + Bank Capital
Table12.1BalanceSheetofU.S.CommercialBanks,August20O4CAssets inbillionsofdollars(numbersinparenthesesarepercentageoftotalassets)321.6Cashitems (including reserves)(4.1)1.893.5（23.9)Securities1.170.7(14.8)U.S.Governmentandagency722.8(9.1)Stateand localgovernmentandother5.044.6(63.7)Loans887.1Commercial and industrial(11.2)2.411.6Real estate (includingmortgage)(30.5)672.3(8.5)Consumer364.7Interbank(4.6)Other708.9(9.0)OtherAssets655.1(8.3)7,914.8TotalCommercialBankAssetsLiabilities in billions ofdollars (numbers in parentheses arepercentage of total liabilities)Checkabledeposits645.0(8.9)4.487.7(62.3)Nontransactiondeposits3.340.9(46.3)Savingsdepositsandtimedeposits1,146.8（15.9)Large,negotiabletimedeposits1,589.0(22.0)BorrowingsFrombanksinU.S.459.1(6.4)FromnonbanksinU.S.1,129.9(15.7)487.4(6.8)OtherliabilitiesTotalCommercial Bank Liabilities7,209.1705.7Bank Assets-Bank Liabilities=Bank Capital12-4WebPage-BoardofGovernors
Web Page 12 - 4 – Board of Governors
The Balance Sheet ofC8Commercial Banks2. Assets: Uses of Funds.CashItemsreservescashitemsinprocessofcollectionvaultcashSecuritiessecondary reservesLoans12-5
12-5 The Balance Sheet of Commercial Banks • 2. Assets: Uses of Funds • Cash Items • reserves • cash items in process of collection • vault cash • Securities • secondary reserves • Loans