tailieunhanh - Lecture Financial institutions, instruments and markets (6/e): Chapter 2 - Viney

Chapter 2 - Commercial banks, in this chapter, the learning objectives are: Evaluate the functions and activities of commercial banks, identify the main sources and uses of funds for commercial banks, outline the nature and importance of banks’ off-balance-sheet business,. | Chapter 2 Commercial Banks Websites: 2- Learning Objectives Evaluate the functions and activities of commercial banks Identify the main sources and uses of funds for commercial banks Outline the nature and importance of banks’ off-balance-sheet business Examine the main risk exposures and consider related issues of regulation and prudential supervision of banks 2- Chapter Organisation Main Activities of Commercial Banking Sources of Funds Uses of Funds Off-balance-sheet Business Regulation and Prudential Supervision Background to Capital Adequacy Standards Basel II Capital Accord Liquidity Management and Other Supervisory Controls Summary 2- Main Activities of Commercial Banking Importance of banks High level of regulation prior to the mid-1980s constrained their development and led to growth of non-bank financial institutions Largest share of assets of all institutions, but understated without considering off-balance-sheet transactions, managed funds, superannuation and subsidiary finance, insurance and companies 2- Main Activities of Commercial Banking (cont.) Asset management (−1980s) Loans portfolio is tailored to match the available deposit base Liability management (1980s−) Deposit base and other funding sources are managed to meet loan demand Borrow directly from domestic and international capital markets Provision of other financial services Off-balance-sheet (OBS) business 2- Chapter Organisation Main Activities of Commercial Banking Sources of Funds Uses of Funds Off-balance-sheet Business Regulation and Prudential Supervision Background to Capital Adequacy Standards Basel II Capital Accord Liquidity Management and Other Supervisory Controls Summary 2- Sources of Funds Sources of funds appear in the balance sheet as . | Chapter 2 Commercial Banks Websites: 2- Learning Objectives Evaluate the functions and activities of commercial banks Identify the main sources and uses of funds for commercial banks Outline the nature and importance of banks’ off-balance-sheet business Examine the main risk exposures and consider related issues of regulation and prudential supervision of banks 2- Chapter Organisation Main Activities of Commercial Banking Sources of Funds Uses of Funds Off-balance-sheet Business Regulation and Prudential Supervision Background to Capital Adequacy Standards Basel II Capital Accord Liquidity Management and Other Supervisory Controls Summary 2- Main Activities of Commercial Banking Importance of banks High level of regulation prior to the mid-1980s constrained their development and led to growth of .