1、商业银行学解答 第八版 罗斯Chap013CHAPTER 13MANAGING NONDEPOSIT LIABILITIESGoal of This Chapter: The purpose of this chapter is to learn about the principal nondeposit sources of funds that financial institutions can borrow to help finance their activities and to see how managers choose among the various nondepo
2、sit funds sources currently available to them. Key Topics in this Chapter Liability Management Customer Relationship Doctrine Alternative Nondeposit Funds Sources Measuring the Funds Gap Choosing Among Different Funds Sources Determining the Overall Cost of FundsChapter OutlineI. IntroductionII. Lia
3、bility Management and the Customer Relationship Doctrine A. Customer Relationship Doctrine B. Liability ManagementIll. Alternative Nondeposit Sources of FundsA. Federal Funds Market (“Fed Funds”)B. Repurchase Agreements as a Source of FundsC. Borrowing from Federal Reserve Banks 1. Primary Credit 2.
4、 Secondary Credit 3. Seasonal CreditD. Advances from Federal Home Loan BanksE. Development and Sale of Large Negotiable CDsF. Eurocurrency Deposit MarketG. Commercial Paper MarketE. Long-Term Nondeposit Funds SourcesIV. Choosing Among Alternative Nondeposit SourcesA. Measuring a Financial Firms Tota
5、l Need for Nondeposit Funds: The Available Funds GapB. Nondeposit Funding Sources: Factors to Consider1. Relative Costs2. The Risk Factor3. The Length of Time Funds Are Needed4. The Size of the Borrowing Institution5. RegulationsV. Summary of the ChapterConcept Checks 13-1. What is liability managem
6、ent?Liability management involves the conscious control of the funding sources of a financial institution, using the interest rates (yields) offered on deposits and other borrowings to regulate the inflow of funds to match the banks immediate funding needs.13-2. What advantages and risks does the pu
7、rsuit of liability management bring to a borrowing institution?Improved control over funding sources enables a borrowing institution to plan its growth more completely, but liability management opens up certain risks, particularly of the interest-rate risk and solvency (default or failure) risk vari
8、ety, because it tends to be more sensitive to changes in market interest rates.13-3. What is the customer relationship doctrine, and what are its implications for fundraising by lending institutions?The customer relationship doctrine places lending to customers at the top of the priority list, which
9、 proclaims that the first priority of a lending institution is to make loans to all those customers from whom the lender expects to receive positive net earnings. It argues that a lending institution should make all good loans that is, all loans that meet the institutions quality and profitability s
10、tandards and then find the funds needed to fund those loans they decide to make. Funds uses thus become a higher immediate priority item than funds sources.13-4. For what kinds of funding situations are Federal funds best suited?Federal funds are best suited for institutions short of reserves to mee
11、t their legal reserve requirements or to satisfy customer loan demand. It satisfies this demand by tapping immediately usable funds.13-5. Chequers State Bank loans $50 million from its reserve account at the Federal ReserveBank of Philadelphia to First National Bank of Smithville, located in the New
12、 York Federal Reserve Banks district, for 24 hours with the funds returned the next day. Can you show the correct accounting entries for making this loan and for the return of the loaned funds?Step 1 - Lending the $50 millionChequers State BankAssetsLiabilitiesFederal funds sold + $50 mill.Reserves
13、at Fed - $50 mill.Step 2 - Using the borrowed funds can also be shown, though it is not mentioned in the problem. You could show First National Bank of Smithville making a loan for $50 million under Assets, giving up $50 million from its reserve account.First National Bank of SmithvilleAssetsLiabili
14、tiesReserves Federal FundsAt Fed + $50 mill.Purchased +$50 mill.Step 3 - Repaying the Loan of Federal FundsChequers State BankAssetsLiabilitiesReserves at Fed + $50 mill.Federalfunds sold - $50 mill.First National Bank of SmithvilleAssetsLiabilitiesReservesat Fed - $50 mill.Federal fundspurchased -
15、$50 mill.13-6. Hillside Savings Association has an excess balance of $35 million in a deposit at its principal correspondent, Sterling City Bank, and instructs the latter institution to loan the funds today to another bank or thrift institution, returning them to its correspondent deposit the next b
16、usiness day. Sterling loans the $35 million to Imperial Security National Bank for 24 hours. Can you show the proper accounting entries for the extension of this loan and the recovery of the loaned funds by Hillside Savings?Step 1 - Lending Federal Funds to a CorrespondentHillside Security BankAsset
17、sLiabilitiesDeposit withCorrespondent -$35 mill.Federal Funds loaned +$35 mill.Sterling City BankAssetsLiabilitiesFederal fundspurchased +$35 mill.Respondent Banks deposit -$35 mill.Step 2 - The Correspondent Bank Loans Funds to another Bank Sterling City BankAssetsLiabilitiesReserves -$35 mill.Fede
18、ral funds loaned +$35 mill.Imperial Security National BankAssetsLiabilitiesReserves + $35 mill.Federal fundspurchased $35 mill.Step 3 - Repaying the Loan to the Respondent Bank Hillside Security BankAssetsLiabilitiesDeposit withCorrespondent +$35 mill.Federal funds loaned -$35 mill.Sterling City Ban
19、kAssetsLiabilitiesFederal funds purchased -$35 mill.Banks deposit +$35 mill.13-7. Compare and contrast Fed funds transactions with RPs?Less popular than Fed funds and more complex are repurchase agreements (RPs). RPs are agreements to sell securities temporarily by a borrower of funds to a lender of
20、 funds with the borrower agreeing to buy back the securities at a guaranteed price at a set time in the future. Both are instruments available for short term borrowing. However, RP agreements are collateralized loans and thus, the lender is not exposed to credit risk as they are with Federal funds t
21、ransactions. Most RPs are transacted across the Fed Wire system, just as are Fed funds transactions. RPs may take a bit longer to transact then a Fed funds loan because the seller of funds (the lender) must be satisfied with the quality and quantity of securities provided as collateral.13-8. What ar
22、e the principal advantages to the borrower of funds under an RP agreement?RPs are a low-cost and low-risk way of borrowing loanable funds for short periods of time (usually 3 or 4 days). They are low risk because they are essentially a collateralized loan. The securities that are sold as part of the
23、 agreement act as collateral.13-9. What are the advantages of borrowing from the Federal Reserve banks or other central bank? Are there any disadvantages? What is the difference between primary, secondary, and seasonal credit? What is the Lombard rate and why might such a rate be useful in achieving
24、 monetary policy goals?Borrowing from the Federal Reserve banks is a viable alternative to the Federal funds market. These loans are made for a short term (usually two weeks). Primary credits are short term loans available to sound depositary institutions. Secondary credits are short term loans avai
25、lable to institutions that do not qualify for primary credit. Seasonal credit refers to loans given to small and medium sized institutions to cover seasonal swings in their deposits and loans. The Lombard rate is the Feds discount rate which is set above the Federal funds rate. If borrowing from the
26、 discount window is more expensive than the Fed funds market, banks will use the discount window less frequently and central banks do not have to restrict access to the discount window and do not have to worry about banks borrowing at the discount window and lending these funds at the Federal funds
27、rate. Thus, the “Lombard” rate effectively acts as a ceiling on overnight borrowing rates.13-10. How is a discount window loan from the Federal Reserve secured? Is collateral really necessary for these kinds of loans?A discount window loan must be secured by collateral acceptable to a Federal Reserv
28、e bank (usually U.S. government securities). Most banks keep government securities in the vaults of the Federal Reserve for this purpose. The Federal Reserve bank will also accept some government agency securities and high-grade commercial paper as collateral.Each type of discount window loan carrie
29、s its own loan rate, with secondary credit generally posting the highest interest rate and seasonal credit the lowest. For example, in March 2008 the Federal Reserves discount window loan rates were 2.50 percent for primary credit, 3.00 percent for secondary credit, and 2.95 percent for seasonal cre
30、dit. 13-11. Posner State Bank borrows $10 million in primary credit from the Federal Reserve Bank of Cleveland. Can you show the correct entries for granting and repaying this loan?The proper entries are:Step 1 - Securing a Loan from the Fed.Posner State BankAssetsLiabilitiesReserves on deposit at t
31、he Federal Reserve Bank + $10 millNotes payable +$10 mill.Federal Reserve Bank of ClevelandAssetsLiabilitiesLoans and advances +$10 mill.Bank reserve accounts $10 mill.Step 2 - Repaying the Loan to the Fed. Posner State BankAssetsLiabilitiesReserves on deposit at the Federal Reserve Bank -$10 millNotes Payable -$10 mill.Federal Reserve Bank of ClevelandAssetsLiabilitiesLoans and advances -$10 mill.Bank reserve accounts -$10 mill.13-12. Which institutions are allowed to borrow from the Fe
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