商业银行学解答 第八版 罗斯Chap013.docx

商业银行学解答 第八版 罗斯Chap013.docx

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商业银行学解答第八版罗斯Chap013

CHAPTER13

MANAGINGNONDEPOSITLIABILITIES

GoalofThisChapter:

Thepurposeofthischapteristolearnabouttheprincipalnondepositsourcesoffundsthatfinancialinstitutionscanborrowtohelpfinancetheiractivitiesandtoseehowmanagerschooseamongthevariousnondepositfundssourcescurrentlyavailabletothem.

KeyTopicsinthisChapter

∙LiabilityManagement

∙CustomerRelationshipDoctrine

∙AlternativeNondepositFundsSources

∙MeasuringtheFundsGap

∙ChoosingAmongDifferentFundsSources

∙DeterminingtheOverallCostofFunds

ChapterOutline

I.Introduction

II.LiabilityManagementandtheCustomerRelationshipDoctrine

A.CustomerRelationshipDoctrine

B.LiabilityManagement

Ill.AlternativeNondepositSourcesofFunds

A.FederalFundsMarket（“FedFunds”）

B.RepurchaseAgreementsasaSourceofFunds

C.BorrowingfromFederalReserveBanks

1.PrimaryCredit

2.SecondaryCredit

3.SeasonalCredit

D.AdvancesfromFederalHomeLoanBanks

E.DevelopmentandSaleofLargeNegotiableCDs

F.EurocurrencyDepositMarket

G.CommercialPaperMarket

E.Long-TermNondepositFundsSources

IV.ChoosingAmongAlternativeNondepositSources

A.MeasuringaFinancialFirm’sTotalNeedforNondepositFunds:

TheAvailableFundsGap

B.NondepositFundingSources:

FactorstoConsider

1.RelativeCosts

2.TheRiskFactor

3.TheLengthofTimeFundsAreNeeded

4.TheSizeoftheBorrowingInstitution

5.Regulations

V.SummaryoftheChapter

ConceptChecks

13-1.Whatisliabilitymanagement?

Liabilitymanagementinvolvestheconsciouscontrolofthefundingsourcesofafinancialinstitution,usingtheinterestrates（yields）offeredondepositsandotherborrowingstoregulatetheinflowoffundstomatchthebank'simmediatefundingneeds.

13-2.Whatadvantagesandrisksdoesthepursuitofliabilitymanagementbringtoaborrowinginstitution?

Improvedcontroloverfundingsourcesenablesaborrowinginstitutiontoplanitsgrowthmorecompletely,butliabilitymanagementopensupcertainrisks,particularlyoftheinterest-rateriskandsolvency（defaultorfailure）riskvariety,becauseittendstobemoresensitivetochangesinmarketinterestrates.

13-3.Whatisthecustomerrelationshipdoctrine,andwhatareitsimplicationsforfundraisingbylendinginstitutions?

Thecustomerrelationshipdoctrineplaceslendingtocustomersatthetopoftheprioritylist,whichproclaimsthatthefirstpriorityofalendinginstitutionistomakeloanstoallthosecustomersfromwhomthelenderexpectstoreceivepositivenetearnings.Itarguesthatalendinginstitutionshouldmakeallgoodloansthatis,allloansthatmeettheinstitution'squalityandprofitabilitystandardsandthenfindthefundsneededtofundthoseloanstheydecidetomake.Fundsusesthusbecomeahigherimmediatepriorityitemthanfundssources.

13-4.ForwhatkindsoffundingsituationsareFederalfundsbestsuited?

Federalfundsarebestsuitedforinstitutionsshortofreservestomeettheirlegalreserverequirementsortosatisfycustomerloandemand.Itsatisfiesthisdemandbytappingimmediatelyusablefunds.

13-5.ChequersStateBankloans$50millionfromitsreserveaccountattheFederalReserve

BankofPhiladelphiatoFirstNationalBankofSmithville,locatedintheNewYorkFederalReserveBank'sdistrict,for24hourswiththefundsreturnedthenextday.Canyoushowthecorrectaccountingentriesformakingthisloanandforthereturnoftheloanedfunds?

Step1-Lendingthe$50million

ChequersStateBank

Assets

Liabilities

Federalfunds

sold+$50mill.

Reserves

atFed-$50mill.

Step2-Usingtheborrowedfundscanalsobeshown,thoughitisnotmentionedintheproblem.YoucouldshowFirstNationalBankofSmithvillemakingaloanfor$50millionunderAssets,givingup$50millionfromitsreserveaccount.

FirstNationalBankofSmithville

Assets

Liabilities

Reserves

FederalFunds

AtFed+$50mill.

Purchased+$50mill.

Step3-RepayingtheLoanofFederalFunds

ChequersStateBank

Assets

Liabilities

Reserves

atFed+$50mill.

Federal

fundssold-$50mill.

FirstNationalBankofSmithville

Assets

Liabilities

Reserves

atFed-$50mill.

Federalfunds

purchased-$50mill.

13-6.HillsideSavingsAssociationhasanexcessbalanceof$35millioninadepositatitsprincipalcorrespondent,SterlingCityBank,andinstructsthelatterinstitutiontoloanthefundstodaytoanotherbankorthriftinstitution,returningthemtoitscorrespondentdepositthenextbusinessday.Sterlingloansthe$35milliontoImperialSecurityNationalBankfor24hours.CanyoushowtheproperaccountingentriesfortheextensionofthisloanandtherecoveryoftheloanedfundsbyHillsideSavings?

Step1-LendingFederalFundstoaCorrespondent

HillsideSecurityBank

Assets

Liabilities

Depositwith

Correspondent-$35mill.

FederalFunds

loaned+$35mill.

SterlingCityBank

Assets

Liabilities

Federalfunds

purchased+$35mill.

Respondent

Bank'sdeposit-$35mill.

Step2-TheCorrespondentBankLoansFundstoanotherBank

SterlingCityBank

Assets

Liabilities

Reserves-$35mill.

Federalfunds

loaned+$35mill.

ImperialSecurityNationalBank

Assets

Liabilities

Reserves+$35mill.

Federalfunds

purchased$35mill.

Step3-RepayingtheLoantotheRespondentBank

HillsideSecurityBank

Assets

Liabilities

Depositwith

Correspondent+$35mill.

Federalfunds

loaned-$35mill.

SterlingCityBank

Assets

Liabilities

Federalfunds

purchased-$35mill.

Bank's

deposit+$35mill.

13-7.CompareandcontrastFedfundstransactionswithRPs?

LesspopularthanFedfundsandmorecomplexarerepurchaseagreements（RPs）.RPsareagreementstosellsecuritiestemporarilybyaborroweroffundstoalenderoffundswiththeborroweragreeingtobuybackthesecuritiesataguaranteedpriceatasettimeinthefuture.Bothareinstrumentsavailableforshorttermborrowing.However,RPagreementsarecollateralizedloansandthus,thelenderisnotexposedtocreditriskastheyarewithFederalfundstransactions.MostRPsaretransactedacrosstheFedWiresystem,justasareFedfundstransactions.RPsmaytakeabitlongertotransactthenaFedfundsloanbecausetheselleroffunds（thelender）mustbesatisfiedwiththequalityandquantityofsecuritiesprovidedascollateral.

13-8.WhataretheprincipaladvantagestotheborroweroffundsunderanRPagreement?

RPsarealow-costandlow-riskwayofborrowingloanablefundsforshortperiodsoftime（usually3or4days）.Theyarelowriskbecausetheyareessentiallyacollateralizedloan.Thesecuritiesthataresoldaspartoftheagreementactascollateral.

13-9.WhataretheadvantagesofborrowingfromtheFederalReservebanksorothercentralbank?

Arethereanydisadvantages?

Whatisthedifferencebetweenprimary,secondary,andseasonalcredit?

WhatistheLombardrateandwhymightsucharatebeusefulinachievingmonetarypolicygoals?

BorrowingfromtheFederalReservebanksisaviablealternativetotheFederalfundsmarket.Theseloansaremadeforashortterm（usuallytwoweeks）.Primarycreditsareshorttermloansavailabletosounddepositaryinstitutions.Secondarycreditsareshorttermloansavailabletoinstitutionsthatdonotqualifyforprimarycredit.Seasonalcreditreferstoloansgiventosmallandmediumsizedinstitutionstocoverseasonalswingsintheirdepositsandloans.

TheLombardrateistheFedsdiscountratewhichissetabovetheFederalfundsrate.IfborrowingfromthediscountwindowismoreexpensivethantheFedfundsmarket,bankswillusethediscountwindowlessfrequentlyandcentralbanksdonothavetorestrictaccesstothediscountwindowanddonothavetoworryaboutbanksborrowingatthediscountwindowandlendingthesefundsattheFederalfundsrate.Thus,the“Lombard”rateeffectivelyactsasaceilingonovernightborrowingrates.

13-10.HowisadiscountwindowloanfromtheFederalReservesecured?

Iscollateralreallynecessaryforthesekindsofloans?

AdiscountwindowloanmustbesecuredbycollateralacceptabletoaFederalReservebank（usuallyU.S.governmentsecurities）.MostbankskeepgovernmentsecuritiesinthevaultsoftheFederalReserveforthispurpose.TheFederalReservebankwillalsoacceptsomegovernmentagencysecuritiesandhigh-gradecommercialpaperascollateral.

Eachtypeofdiscountwindowloancarriesitsownloanrate,withsecondarycreditgenerallypostingthehighestinterestrateandseasonalcreditthelowest.Forexample,inMarch2008theFederalReserve’sdiscountwindowloanrateswere2.50percentforprimarycredit,3.00percentforsecondarycredit,and2.95percentforseasonalcredit.

13-11.PosnerStateBankborrows$10millioninprimarycreditfromtheFederalReserveBankofCleveland.Canyoushowthecorrectentriesforgrantingandrepayingthisloan?

Theproperentriesare:

Step1-SecuringaLoanfromtheFed.

PosnerStateBank

Assets

Liabilities

Reservesondeposit

attheFederal

ReserveBank+$10mill

Notes

payable+$10mill.

FederalReserveBankofCleveland

Assets

Liabilities

Loansand

advances+$10mill.

Bankreserve

accounts$10mill.

Step2-RepayingtheLoantotheFed.

PosnerStateBank

Assets

Liabilities

Reservesondeposit

attheFederal

ReserveBank-$10mill

Notes

Payable-$10mill.

FederalReserveBankofCleveland

Assets

Liabilities

Loansand

advances-$10mill.

Bankreserve

accounts-$10mill.

13-12.WhichinstitutionsareallowedtoborrowfromtheFe