商业银行答案美国版第815Word下载.docx

商业银行答案美国版第815Word下载.docx

《商业银行答案美国版第815Word下载.docx》由会员分享，可在线阅读，更多相关《商业银行答案美国版第815Word下载.docx（20页珍藏版）》请在冰豆网上搜索。

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