商业银行答案美国版第815Word下载.docx
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A.CushionAgainstRiskofFailure
B.ProvidesFundsNeededtoBeginOperations
C.PromotesPublicConfidence
D.ProvidesFundsforFutureGrowthandNewServices
E.RegulatorofGrowth
F.CapitalPlaysaRoleinMergers
G.LimitsHowMuchRiskExposureBanksandCompetingFirmsCanAccept
H.ProtectstheGovernment’sDepositInsuranceSystem
Ill.CapitalandRisk
A.KeyRisksinBankingandFinancialInstitutions’Management
1.CreditRisk
2.LiquidityRisk
3.Interest-RateRisk
4.OperatingRisk
5.ExchangeRisk
6.CrimeRisk
B.DefensesagainstRisk
1.QualityManagement
2.Diversification
a.Portfolio
b.Geographic
3.DepositInsurance
4.Owners'
Capital
IV.TypesofCapital
A.CommonStock
B.PreferredStock
C.Surplus
D.UndividedProfits
E.EquityReserves
F.SubordinatedDebentures
G.MinorityInterestinConsolidatedSubsidiaries
H.EquityCommitmentNotes
I.RelativeImportanceoftheDifferentSourcesofCapital
V.OneoftheGreatIssuesintheHistoryofBanking:
HowMuchCapitalIsReallyNeeded?
A.RegulatoryApproachtoEvaluatingCapitalNeeds
1.ReasonsforCapitalRegulation
2.ResearchEvidence
VI.TheBasleAgreementonInternationalCapitalStandards:
AnHistoricContractamongLeadingNations
A.BaselI
1.TierOneCapital
2.TierTwoCapital
3.CalculatingRisk-WeightedAssetsUnderBasleI
4.CalculatingtheCapital-toRisk-WeightedAssetsRatioUnderBaselI
B.CapitalRequirementsAttachedtoDerivatives
1.BankCapitalStandardsandMarketRisk
2.MarketRiskandValueatRisk(VaR)Models
3.ValueatRisk(VAR)Models
4.LimitationsandChallengesofVaRandInternalModeling
C.BaselII:
ANewCapitalAccordUnfolding
1.PillarsofBaselII
2.InternalRiskAssessment
3.OperationalRisk
4.BaselIIandCreditRiskModels
5.ADual(Large-Bank,Small-Bank)SetofRules
6.ProblemsAccompanyingtheImplementationofBaselII
VII.ChangingCapitalStandardsInsidetheUnitedStates
A.FDICImprovementAct
B.PromptCorrectiveAction
1.WellCapitalized
2.AdequatelyCapitalized
3.Undercapitalized
4.SignificantlyUndercapitalized
5.CriticallyUndercapitalized
VIII.PlanningToMeetCapitalNeeds
A.RaisingCapitalInternally
1.DividendPolicy
2.HowFastMustInternallyGeneratedFundsGrow?
B.RaisingCapitalExternally
1.IssuingCommonStock
2.IssuingPreferredStock
3.IssuingSubordinatedNotesandDebentures
4.SellingAssetsandLeasingFacilities
5.SwappingStockforDebtSecurities
6.ChoosingtheBestAlternativeforRaisingOutsideCapital
IX.SummaryoftheChapter
ConceptChecks
15-1.Whatdoesthetermcapitalmeanasitappliestofinancialinstitutions?
Fundscontributedtoafinancialinstitutionprimarilybyitsowners,consistingmainlyofstock,reserves,andretainedearnings,plusanylong-termdebtissuedthatqualifiesunderregulations.
15-2.Whatcrucialroledoescapitalplayinthemanagementandviabilityoffinancialfirm?
Capitalprovidesthelong-term,permanentfundingthatisneededtoconstructfacilitiesandprovideabaseforthefutureexpansionofassets.Capitalalsoabsorbsoperatinglossesuntilmanagementhasachancetocorrecttheinstitution'
sproblems.Fromaregulatoryperspectivecapitallimitsthegrowthofriskyassets.
15-3.Whatarethelinksbetweencapitalandriskexposureamongfinancialserviceproviders?
Capitalfunctionsasacushiontoabsorblossesuntilmanagementcancorrecttheproblemsgeneratingthoselosses.Institutionsfacemanydifferentkindsofrisk:
(1)crimerisk,
(2)interest-raterisk,(3)creditrisk,(4)liquidityrisk,(5)exchangeriskand(6)operationalrisk.Capitalrepresentstheultimatelineofdefenseagainsttheseriskswhenallotherdefensesfail.
15-4.Whatformsofcapitalareinusetoday?
Whatarethekeydifferencesbetweenthedifferenttypesofcapital?
Theprincipalformsofbankcapitalincludecommonandpreferredstock,surplus,retainedearnings,andsubordinatednotesanddebentures.Commonstockrepresentstheparvaluepaidbyowners,whilesurplusistheamountpaidoverparvalueforthestockwhenitisfirstsold.Preferredstockisaspecialtypeofownershipwheredividendsarefixedandstockholdersgenerallydonothaveavoteonmajoractivitiesundertakenbythefirm.Retainedearningsaretheaccumulatedearningsofthefirmkepttoreinvestbackinthecompany.Subordinatednotesanddebenturesarelongtermdebtinstrumentsthatdonnotrepresentownershipclaims.
15-5.Measuredbyvolumeandpercentageoftotalcapital,whatarethemostimportantandleastimportantformsofcapitalheldbyU.S.-insuredbanks?
Whydoyouthinkthisisso?
Themostimportantformofcapitalissurplus,followedbyretainedearnings,subordinatednotesanddebenturesandpreferredstock.Commonstockrepresentswhatownerscontributeoriginallywhentheybuythestocktobeginwith.Retainedearningsrepresentthegrowthinearningsthataccumulateinthefirmovertime.Whattheownerscontributetothefirmandthewealththataccumulatesovertimearethetruecushionagainstlossthatcapitalrepresents.
15-6.Howdosmallbanksdifferfromlargebanksinthecompositionoftheircapitalaccountsandinthetotalvolumeofcapitaltheyholdrelativetotheirassets?
Whydoyouthinkthesedifferencesexist?
Smallbanksrelymainlyonretainedearningsandverylittleonlongtermdebt,whereaslargebanksrelyoncommonstock,retainedearningsandlongtermdebt.Smallbankshaveadifficulttimetoplacetheirequityanddebtsecuritiesinthemarketandthus,relymoreheavilyoninternalcapital(i.e.retainedearnings)
15-7Whatistherationaleforhavingthegovernmentsetcapitalstandardsforfinancialinstitutions,asopposedtolettingtheprivatemarketplacesetthosestandards?
Thegovernment'
sinterestincapitalstemsfromitseffortstostabilizethefinancialsystemandavoiddrainsonthefederalinsurancesystem.Capitalrequirementshavelongbeensubjecttogovernmentregulation,thoughbankersfrequentlyarguethatthemarket,ratherthanregulators,shoulddeterminehowmuchcapitalafinancialinstitutionshouldhold.Thefearamongregulators,however,isthatfinancialinstitutionswouldholdtoolittlecapitaltoavoidexcessivenumbersoffailuresandthattheprivatemarketcannotadequatelyassesstheirneedforcapital.
15-8.Whatevidencedoesrecentresearchprovideontheroleoftheprivatemarketplaceindeterminingcapitalstandards?
Theresultsofrecentstudiesarevaried,butmostfindthattheprivatemarketplaceismoreimportantthangovernmentregulationindeterminingtheamountandtypeofcapitalfinancialinstitutionsmusthold.However,governmentregulationapparentlywasatleastasimportantinthe1980sandearly1990s,withthetighteningofcapitalregulationsandtheimpositionofminimumcapitalrequirements.
15-9.Accordingtorecentresearch,doescapitalpreventafinancialinstitutionfromfailing?
Ifcapitalislargeenoughtoabsorboperatinglossesitcanpreventfailureforatime,atleastuntilthecapitalisallusedup.However,thereisnosolid,undisputedevidenceofasignificantrelationshipbetweenthesizeofthecapital-to-assetratioandtheincidenceoffailure.
15-10.Whatarethemostpopularfinancialratiosregulatorsusetoassesstheadequacyofbankcapitaltoday?
Theprimecapital-adequacyratiosaretotalcapitaltoassets,equitycapitaltoassets,totalcapitaltoriskassets,andprimaryorcorecapitalandsupplementaryorsecondarycapitaltototalassetsandtorisk-adjustedassets.
15-11.Whatisthedifferencebetweencore(ortier1)capitalandsupplemental(ortier2)capital?
Corecapitalisthepermanentcapitalofabank,consistingmainlyofcommonstock,surplus,retainedearnings,andequityreserves.Supplementalcapitalissecondaryformsofbankcapital,suchasdebtsecuritiesandlimited-lifepreferredstockandafewqualifiedintangiblesassets.
15-12.Abankreportsthefollowingitemsonitslatestbalancesheet:
AllowanceforLoanandLeaseLosses$42million;
UndividedProfits$81million;
SubordinatedDebtCapital$3million;
CommonStockandSurplus$27million;
EquityNotes$2million;
MinorityInterestinSubsidiaries$4million;
MandatoryConvertibleDebt$5million;
IdentifiableIntangibleAssets$3million;
andNoncumulativePerpetualPreferredStock$5million.HowmuchdoesthebankholdinTier1capital?
InTier2capital?
DoesthebankhavetoomuchTier2capital?
TheTier1capitalitemsinclude:
TheTier2capitalitemsinclude:
Commonstockandsurplus
$27mill.
AllowanceforLoanand
LeaseLosses
$42mill.
UndividedProfits
81
SubordinatedDebtCapital
3
NoncumulativePerpetual
MandatoryConvertibleDebt
5
PreferredStock
EquityNotes
2
Minorityinterestin
IdentifiableIntangibleAssets
Subsidiaries
4
TotalTier1Capital
$117mill.
TotalTier2Capital
$55mill.
ThebankdoesnothavetoomuchTier2capital.Tier2capitalcanbeupto100percentoftheamountof