商业银行管理 ROSE 7e 课后答案 chapter02.docx
《商业银行管理 ROSE 7e 课后答案 chapter02.docx》由会员分享,可在线阅读,更多相关《商业银行管理 ROSE 7e 课后答案 chapter02.docx(12页珍藏版)》请在冰豆网上搜索。
![商业银行管理 ROSE 7e 课后答案 chapter02.docx](https://file1.bdocx.com/fileroot1/2023-1/9/ca82ddc5-460c-4d07-958d-5d3f086be478/ca82ddc5-460c-4d07-958d-5d3f086be4781.gif)
商业银行管理ROSE7e课后答案chapter02
CHAPTER2
THEIMPACTOFGOVERNMENTPOLICYANDREGULATIONONBANKINGANDTHEFINANCIALSERVICESINDUSTRY
GoalofThisChapter:
Thischapterisdevotedtoastudyofthecomplexregulatoryenvironmentthatgovernmentsaroundtheworldhavecreatedforbanksandotherfinancialservicefirmsinanefforttosafeguardthepublic’ssavings,bringstabilitytothefinancialsystem,andpreventabuseoffinancialservicecustomers.
KeyTopicsPresentedinThisChapter
∙ThePrincipalReasonsforBankandNonbankFinancial-ServicesRegulation
∙MajorBankandNonbankRegulatorsandLaws
∙TheRiegle-NealandGramm-Leach-Bliley(GLB)Acts
∙KeyRegulatoryIssuesLeftUnresolved
∙TheCentralBankingSystem
∙OrganizationandStructureoftheFederalReserveSystemandLeadingCentralBanksofEuropeandAsia
∙IndustryImpactofCentralBankPolicyTools
ChapterOutline
I.Introduction:
NatureandImportanceofBankRegulation
II.BankingRegulation
A.ProsandConsofStrictRules
1.Toprotectthepublic'ssavings
2.Tocontrolthemoneysupply
3.Toensureadequatesupplyofloansandtoensurefairness
4.Tomaintainconfidenceinthesystem
5.Toavoidmonopolypowers
6.Toprovidesupportforgovernmentactivities
7.Tosupportspecialsectorsoftheeconomy
B.TheImpactofRegulation-TheArgumentsforStrictRulesversusLenientRules
III.MajorBankingLaws-WhereandWhentheRulesOriginated
A.Meetthe“Parents”:
TheLegislationThatCreatedToday’sBankRegulators
a.NationalCurrencyandBankActs(1863-64)
b.TheFederalReserveAct(1913)
c.TheBankingActof1933(Glass-Steagall)
d.EstablishingtheFDICunderGlass-Steagall
e.CriticismsoftheFDICandResponsesViaNewLegislation
f.RaisingtheFDICInsuranceLimit
B.InstillingSocialGracesandMorales-SocialResponsibilityLaws
C.LegislationAimedatAllowingInterstateBanking:
WhereCanthe“Kids”Play?
D.TheGramm-Leach-BlileyAct(1999):
WhatAreAcceptableActivitiesforPlaytime?
E.TellingtheTruthandNotStretchingIt-TheSarbanes-OxleyAccountingStandardsAct(2002)
IV.The21stCenturyIssuesinanArrayofNewLaws,RegulationsandRegulatoryStrategies
A.TheFACTAct
B.Check21
C.NewBankruptcyRules
D.FederalDepositInsuranceReform
E.NewRegulatoryStrategiesinaNewCenturyandUnresolvedRegulatoryIssues
V.TheRegulationofNonbankFinancial-ServiceFirms
A.RegulatingThrift(Savings)Industry
1.CreditUnions
2.SavingsandLoansandSavingsBanks
3.MoneyMarketFunds
4.LifeandProperty/CasualtyInsuranceCompanies
5.FinanceCompanies
6.MutualFunds
7.SecurityBrokersandDealers
8.FinancialConglomerates
B.AreRegulationsReallyNecessaryintheFinancialServicesSector?
VI.TheCentralBankingSystem:
It’sImpactonBanksandtheDecisionsandPoliciesof
FinancialInstitutions
A.OrganizationalStructureoftheFederalReserveSystem
B.TheCentralBank'sPrincipalTask--MakingandImplementingMonetaryPolicy
1.TheOpenMarketPolicyToolofCentralBanking
2.OtherCentralBankPolicyTools
3.AFinalNoteonCentralBanking’sImpactofFinancialFirms
VII.SummaryoftheChapter
ConceptChecks
2-1.Whatkeyareasorfunctionsofabankorotherfinancialfirmareregulatedtoday?
Amongthemostimportantareasofbankingsubjecttoregulationaretheadequacyofabank'scapital,thequalityofitsloansandsecurityinvestments,itsliquidityposition,fund-raisingoptions,servicesoffered,anditsabilitytoexpandthroughbranchingandtheformationofholdingcompanies.
2-2.Whatarethereasonsforregulatingeachofthekeyareasorfunctionsnamedabove?
Theseareasareregulated,firstofall(andprimarily),toprotectthesafetyofthedepositors'fundssothatthepublichassomeassurancethatitssavingsandtransactionsbalancesaresecure.Thus,bankfailureisviewedassomethingtobeminimized.Thereisalsoaconcernformaintainingcompetitionandforinsuringthatthepublichasreasonableandfairaccesstobankingservices,especiallycreditanddepositservices.
Notalloftheareaslistedaboveprobablyshouldberegulated.Minimizingtheriskofbankfailureservestosheltersomepoorlymanagedbanks.Thepublicwouldprobablybebetterservedinthelongrunbyallowinginefficientbankstofailratherthanproppingthemup.Moreover,regulationmayservetodistorttheallocationofresourcesinbanking,suchasbyrestrictingpricecompetitionthroughlegalinterest-rateceilingsandanti-branchinglawswhichleadstooverbuildingofphysicalfacilities.Theresultisawasteofscarceresources.
2-3.WhatistheprincipalroleoftheComptrollerofCurrency?
TheComptrolleroftheCurrencychartersandsupervisestheactivitiesofnationalbanksthroughitspolicy-settingandexaminations.
2-4.WhatistheprincipaljobperformedbytheFDIC?
TheFederalDepositInsuranceCorporation(FDIC)insuresthedepositsofbankcustomers,uptoatotalof$100,000peraccountowner,inbanksthatqualifyforacertificateoffederalinsurancecoverage.TheFDICisaprimaryfederalregulator(examiner)ofstate-chartered,non-memberbanks.Itisalsoresponsibleforliquidatingtheassetsofbanksdeclaredinsolventbytheirfederalorstatecharteringagency.
2-5.WhatkeyrolesdoestheFederalReserveSystemperforminthebankingandfinancialsystem?
TheFederalReserveSystemsupervisesandexaminestheactivitiesofstate-charteredbanksthatchoosetobecomemembersofitssystemandqualifyforFederalReservemembershipandregulatestheacquisitionsandactivitiesofbankholdingcompanies.However,theFed'sprincipalresponsibilityismonetarypolicy--thecontrolofmoneyandcreditgrowthinordertoachievebroadeconomicgoals.
2-6WhatistheGlass-SteagallActandWhyWasItImportantinbankinghistory?
TheGlass-SteagallAct,passedbytheU.S.Congressin1933,wasoneofthemostcomprehensivepiecesofbankinglegislationinAmericanhistory.ItcreatedtheFederalDepositInsuranceCorporationtoinsuresmaller-sizebankdeposits,imposedinterest-rateceilingsonbankdeposits,broadenedthebranchingpowersofnationalbankstoincludestatewidebranchingifstatebankspossessedsimilarpowers,andseparatedcommercialbankingfrominvestmentbanking,therebyremovingcommercialbanksfromunderwritingtheissueandsaleofcorporatestocksandbondsinthepublicmarket.
Therearemanypeoplewhofeelthatbanksshouldhavesomelimitationsontheirinvestmentbankingactivities.Theseanalystsfocusontwomainareas.First,theysuggestthatthisservicemaycauseproblemsforcustomersusingotherbankservices.Forexample,abankmayrequireacustomergettingaloantopurchasesecuritiesofacompanyitisunderwriting.Thispotentialconflictofinterestconcernssomeanalysts.Thesecondconcerndealswithwhetherthebankcangaineffectivecontroloveranindustrialorganization.Thiscouldmakethebanksubjecttoadditionalrisksormaygiveunaffiliatedindustrialorganizationsacompetitivedisadvantage.
Today,bankscanunderwritesecuritiesaspartoftheGramm-LeachBlileyAct(FinancialServicesModernizationAct).However,congressbuiltinseveralprotectionstomakesurethatthebankdoesnottakeadvantageofcustomers.Inaddition,banksarepreventedfromaffiliatingwithindustrialfirmsunderthislaw.
2-7.Whydidthefederalinsurancesystemrunintoseriousproblemsinthe1980sand1990s?
Canthecurrentfederalinsurancesystembeimproved?
Inwhatways?
TheFDIC,whichinsuresU.S.bankdepositsupto$100,000,wasnotdesignedtodealwithsystem-widefailuresormassivenumbersoffailingbanks.Yet,the1980susheredinmorebankclosingsthaninanyperiodsincetheGreatDepressionofthe1930s,bringingtheFDICtothebrinkofbankruptcy.Also,theFDIC'spolicyofchargingthesameinsurancefeestoallbanksregardlessoftheirriskexposureencouragedmorebankstogambleandacceptsubstantialfailurerisk.TherecentFDICImprovementActlegislationhastargetedthislastarea,withmovementtowardarisk-basedinsurancescheduleandgreaterinsistenceonmaintainingadequatelong-termbankcapital.
2-8.HowdidtheEqualCreditOpportunityActandtheCommunityReinvestmentActaddressdiscrimination?
TheEqualCreditOpportunityActstatedthatindividualscouldnotbedeniedaloanbecauseoftheirage,sex,race,nationaloriginorreligiousaffiliationorbecausetheywererecipientsofpublicwelfare.TheCommunityReinvestmentActprohibitedbanksfromdiscriminatingagainstcustomersbasedontheneighborhoodinwhichtheylived.
2-9.HowdoestheFDICdealwithmostfailures?
Mostbankfailuresarehandledbygettinganotherbanktotakeoverthedepositsandcleanassetsofthefailedinstitution--aprocessknownaspurchaseandassumption.Thosethataresmallorinsuchbadshapethatnosuitablebidsarereceivedfromotherbanksareclosedandtheinsureddepositorsarepaidoff--adepositpayoffapproach.Largerfailuresmaysometimesbedealtwithbyopen-bankassistancewheretheFDICloansmoneytothetroubledbankandmayorderachangeinmanagementaswell.Largefailingmoney-centerbanksmayalsobetakenoverandoperatedas"bridgebanks"bytheFDICuntildisposedof.
2-10.WhatchangeshaveoccurredintheU.S.banks’authoritytocrossstatelines?
In1994theRiegle-NealInterstateBankingandEfficiencyActwaspassed.ThislawiscomplicatedbutallowsbankholdingcompanieswithadequatecapitaltoacquirebanksorbankholdingcompaniesanywhereinU.S.territory.Nobankholdingcompanycancontrolmorethan10%ofthedepositsatthenationallevelandmorethan30%ofthedepositsatthestatelevel.Bankholdingcompaniesareals