Quản Trị Và Chiến Lược Ngân Hàng

Quản trị và chiến lược
ngân hàng
Thông tin giảng viên
Quy định về thi
Quản trị và Chapter 4: Establishing New Banks,

chiến lược Branches, ATMs, Telephone Services, and
Websites
ngân hàng
Chapter 14: Investment Banking,
Insurance, and Other Sources of Fee
Income
Chapter 12: Managing and Pricing

Cô Phan Chung Thủy
Email: phanthuy@ueh.edu.vn
Giáo trình dựa trên sách

Giáo trình dựa

trên sách
1. Thi giữa kỳ và cuối kỳ được sử dụng tài liệu
2. Cấu trúc điểm

2. Cấu trúc điểm

1. Assignmtns
2. Midterm test
3. Final Exam
1. Assignmtns
25% (every lecture)
2. Midterm test
25% (maybe)
3. Final Exam
50%
Chapter 4: Establishing New Banks,
Branches, ATMs, Telephone Services,
and Websites
Chapter 4: Establishing Ne...
0. Introduction
1. Chartering a New (De Novo) Financial-Service Institution
2. Establishing Full-Service Branch Offices: Choosing

Locations and Designing New Branches
3. Establishing and Monitoring Automated Limited-Service

Facilities (“Branchless Banking”)
Chapter 4: Establishing New ...
0. Introduction
1. Financial-service facilities are usually established today for
the convenience of customers
2. For most of the history of financial-service providers,

convenience has meant location
3. Customers’ views about what is convenient are

changing rapidly partly due to technology
4. In deciding how they wil...

1. Chartering new (de novo) financial institutions
2. Establishing new full-service branch offices
3. Setting up limited-service facilities

1. Chartering a New (De N...

1. No one can start a financial firm in most countries without the
express approval of federal or state authorities, sometimes both
2. Government chartering agencies believe financial-service

providers need special scrutiny for several reasons:
3. The Bank Chartering Process in the United States

1. No one can start a finan...

1. In the case of banks, the public’s need for a new (de novo)
bank in a particular location must be demonstrated
2. Usually the founder stockholders must supply enough start-

up capital to cover several years and show that the ...
2. Usually the founder stockholders must

supply enough start-up capital to cover
several years and show that the proposed
new institution will achieve adequate levels of
profitability
2. Government chartering ...

1. They hold the public’s savings and unregulated chartering activity
might result in poorly capitalized instituitions that fail
2. Many financial firms are at the heart of the payments process to

support trade and commerce, so their failure could disrupt business
activity
3. They have the ability to create money (through granting credit)

(immediate spending power), which suggests that chartering too many
might result in excessive money creation and inflation
3. The Bank Chartering Pr...

1. Only the banking commissions in each of the 50 states and the Office of the
Comptroller of the Currency (OCC) can issue a charter of incorporation to
start a new U.S. bank
2. Generally, federal standards for receiving a bank charter are more

rigorous than the rules of state banking commissions
3. Organizers often seek a federal bank charter for the added prestige it
conveys in the minds of customers, especially large depositors
4. The choice between pur...

1. Benefits of Applying for a Federal (National) Charter
2. Benefits of Applying for a State Charter

1. Benefits of Applying for ...

1. It brings added prestige due to stricter regulatory
standards that may attract larger deposits
2. In times of trouble, the technical assistance supplied to a

struggling institution by national authorities may be of b...
3. Federal rules can preempt state laws

2. In times of trouble, the technical assistance

supplied to a struggling institution by national
authorities may be of better quality, giving the
troubled bank a better chance to survive
2. Benefits of Applying for ...

1. It is generally easier and less costly to secure a state
charter and supervisory fees are usually lower
2. The bank need not join the Federal Reserve System
3. Some states allow a bank to lend a higher percentage of its

capital to a single borrower
4. State-chartered banks may be able to offer certain

4. Questions Regulators U...

1. What are the population and geographic boundaries of the primary
service area (PSA) from which the new financial firm is expected to
generate most of its account activity?
2. How many competing banks, credit unions, finance companies, and other
competitors are located within the service area of the proposed ne...
3. What are the number, types, and sizes of businesses in the area?
4. What are the traffic patterns in the area, adequacy of roads, and
2. How many competing banks, credit unions, finance

companies, and other competitors are located within the
service area of the proposed new financial institution?
What are competitors’ services, hours of operation, and
distances from the proposed new institution?
5. Factors Weighing on the...

1. External factors the organizers should consider include
2. Internal factors the organizers should consider include

1. External factors the org...

1. The level and growth of economic activity
2. The need for a new financial firm
3. The strength and character of competition in supplying

financial services
2. Internal factors the orga...

1. Qualifications and contacts of the organizers
2. Management quality
3. Pledging of capital to cover the cost of filing a charter

application and getting under way
6. Volume and Characteris...

1. The number of new depository institutions chartered in the United States
annually has averaged over a hundred new banking firms in many recent
years
2. There appears to be considerable public demand for more personalized

service sometimes not available from large financial firms
3. Analysis of charter approvals suggests that most new banks are

chartered in relatively large urban areas
7. How Well Do New Chart...

1. Launching a new financial firm entails risk
2. Most new financial firms grow at a moderate to rapid rate
3. Despite a track record of loan losses that generally exceed those of

established banks, most new banks are often profitable within two to three
years after opening their doors
4. Research also suggests that early performance is strongly tied to the

experience, financial strength, and market contacts of those who put the
7. New banks tend to

underperform establ...
One reason for new banks’ tendency to
underperform is that they appear to be more
vulnerable to real estate crises
8. How can I start a bank?

1. Starting a bank involves a long organization process that could take a year
or more, and permission from at least two regulatory authorities. ...
2. The proposed bank must first receive approval for a federal or state charter.
The Office of the Comptroller of the Currency (OCC) has exclusi...
3. All insured banks must comply with the capital adequacy guidelines of their
primary federal regulator (Federal Reserve, FDIC, or OCC). ...
1. Starting a bank involves a long organization process that

could take a year or more, and permission from at least two
regulatory authorities.
Extensive information about the organizer(s), the business

plan, senior management team, finances, capital adequacy, risk
management infrastructure, and other relevant factors must be
provided to the appropriate authorities.
2. The proposed bank must first receive

approval for a federal or state charter.
The Office of the Comptroller of the
Currency (OCC) has exclusive authority
to issue a federal or "national bank"
charter, while any state (and the District
of Columbia, Guam, Puerto Rico, and the
Virgin Islands) may issue a state charter.
3. All insured banks must comply with the

capital adequacy guidelines of their
primary federal regulator (Federal
Reserve, FDIC, or OCC).
The guidelines require a bank to

demonstrate that it will have enough
capital to support its risk profile,
8. Bài tập: E-banking

and E-Commerce
Câu hỏi:
- Is it more difficult to request for chartering a virtual bank than a
“physical” bank?
- What are the key predictors of its charter?
2. Establishing Full-Servic...
1. When an established financial institution wishes to enter new markets or
when its valued customers move, an important vehicle for market entry is the
creation of new branch offices
2. Establishing branches is usually much cheaper than chartering new

financial-service corporations
3. The branching leader in the United States, the Bank of America, has
more than 6,000 U.S. offices of various kinds
1. When an establishe... EXHIBIT 4–1

Number of
... Insured
Commercial
Bank and Bra...
4. The location, design...
EXHIBIT 4–1 Number of Insured

Commercial Bank and Branch Offices,
1935-2009 (as of Year-End)
5. Desirable sites for full-s...

1. Heavy traffic count
2. Large numbers of retail stores
3. Populations that are of above-average age
4. A surrounding area that encompasses substantial numbers of business

owners, managers, and professional men and women at work or in residence
8. A relatively high
target ratio of popul...
To measure the target ratio of population per
branch, the following equation is used
To measure the target

ratio of population p...
The larger the population served by each office, the more
financial services are likely to be purchased, expanding
revenues and enhancing operating efficiency
6. The decision of whether...

1. Requires a large initial cash outflow to fund the
purchase or lease of property and to begin operations
2. Branches are usually created with the expectation that future

Net Cash Inflows (NCF) will be large enough to gua...
2. Branches are usually created with the

expectation that future Net Cash Inflows (NCF)
will be large enough to guarantee the financial
firm an acceptable return (E(r)) on its invested
capital
1. Requires a large initi...

Equation
of NCF
2. Branches are usually...
7. Other considerations wh...

1. The variance around expected return, which is due mainly to
fluctuations in economic conditions in the area served by the branch
2. The covariance around expected return from the proposed new branch
existing branches, and other assets previously acquired by offering institution
8. The impact of new a

branch's expected...
Equation
9. The marginal impact

of a new bra...
Equation
8. The impact of new a...
9. The marginal impact...

10. Regulation in the Unite...

1. The FDIC Improvement Act of 1991
2. The Community Reinvestment Act of 1977

11. Many analysts see the r...

1. Sales orientation
2. Cross-selling
13. In-Store Branching

1. A significant portion of financial-service branches today are located inside
supermarkets, shopping centers, and other retail establishments
2. These retail-oriented service facilities have only a few employees
3. Highly sales oriented
4. In-store branches typically are much less costly to build and maintain and
tend to become profitable about 12 months earlier than stand-alone facilities
Câu hỏi:
13. In-Store Branc... What’re its

drawbacks?
3. Establishing and Monito...

1. There has been a recent spike in branchless banking due to the high cost
of chartering new financial firms and setting up full-service branch offices
2. The Decision to Install a New ATM

1. There has been a recent...

1. Point-of-sale (POS) terminals
2. Automated teller machines (ATMs)
3. Telephone banking
4. Internet-supplied services
2. The Decision to Install a ...

1. Suppose ATMs cost $50,000 each and require $30,000 to
install
2. A bank estimates that it will save $1.00 for each check that
is not written because customers will use the machine instead
3. Life expectancy is 10 years and it will handle 30,000

cash transactions/year
Net present
2. The Decision to I...
value
4. Banking in Homes, Offic...

1. Telephone Banking and Call Centers
2. Internet Banking
1. Telephone Banking
and Call Centers
The telephone remains among the most
popular channels for putting customers in
touch with financial-service providers today
2. Internet Banking
Features include
Features include
1. Verify in real time account balances at any time and from any
location
2. Move funds instantly from one account to another
3. Confirm that deposits of funds have been received,

checks have cleared, and online transactions have been
completed
5. Financial-Service Faciliti...
1. Despite continually advancing technology, most experts seem to agree that
the total number of financial-service outlets industry wide may not decline
significantly for a time
2. The use of “digital cash” will permit customers to be their own

financial-service branches for certain transactions
3. Service providers are likely to evaluate the success of their branch

offices and limited-service facilities in terms of profits and costs per
square foot
6. Quick Quiz
1. Why is the physical presence of a bank still important to many
customers despite recent advances in long-distance communications
technology?
2. Who charters new banks in the United States?
3. What are the advantages of having a national bank charter? A state

bank charter?
4. What kinds of information must the organizers of new national banks

4. What kinds of information must the organizers of

new national banks provide the Comptroller of the
Currency in order to get a charter?
Why might this required information be important?

Chapter 14: Investment Banking,
Insurance, and Other Sources of Fee
Income
Chapter 14: Investment Ba...
1. Key topic
2. Introduction
3. Sales of Investment Banking Services
4. Selling Investment Products to Consumers
7. Information Flows within the Financial Firm

Chapter 14: Investment Bank...
1. Key topic
1. The Ongoing Search for Fee Income
2. Investment Banking Services
3. Mutual Funds and Other Investment Products
4. Trust Services and Insurance Products
5. Benefits of Product-Line Diversification

2. Introduction
1. Financial institutions have faced a struggle recently to attract the funds they
need in order to make loans and investments and boost their revenues
2. Whenever deposit growth slows, financial service managers frequently are

forced to pursue new sources of funds and new ways to generate revenue
3. Important source of growth in future revenues – fee income

3. Important source of
growth in future reve...
Revenues derived from charging customers
for the particular services they use
Revenues derived from ch...

1. Monthly service charges on transaction accounts
2. Commissions for providing insurance coverage for homes and

businesses
3. Membership fees for accepting and using a particular credit or debit card
4. Fees for providing financial advice to individuals and corporations

4. Fees for providing finan...

Kênh tiết kiệm
Kênh chi tiêu
Kênh đầu tư
Kênh chi tiêu

Làm sao giám sát được chi tiêu
Kênh đầu tư
Đầu tư vào sản phẩm tài chính nào
5. “Swipe fees” at the

point of sale
Swipe fees, also known as interchange fees, are processing fees that are charged to
merchants by payment card networks, such as Visa or Mastercard, for each
transaction made using a credit or debit card. These fees are typically a percentage
of the transaction amount, ranging from 1% to 3%.
6. Some of the fees has

come from non-...
Examples include commissions
and fees from
Examples include commis...

1. Supplying corporations and governments with
investment banking services
2. Selling investment products (including buying or selling

stocks, bonds and shares in mutual funds on behalf of
customers)
3. Selling insurance products (including life, health, and

property/casualty insurance policies) and insurance
7. The drive among compe...

1. A desire to supplement traditional sources of funds (such as deposits) when
these sources are inadequate
2. An attempt to lower production costs by offering multiple services using

the same facilities and resources (economies of scope)
3. An effort to offset higher production costs by asking customers to absorb a

larger share of the cost of both old and new financial services
4. A goal to promote cross-selling of traditional and new services in order to

3. Sales of Investment Ban...

1. One banking service that has been prominent, but volatile, is
investment banking
2. Many leading U.S. banks recently either acquired or formed their own
investment banking affiliates in order to serve corporations and governments
around the world
3. Leading investment banks in the world today:
4. Key Investment Banking Services

2. Many leading U.S.

banks recently either...
For example, JP Morgan Chase’s
acquisition of Bear Stearns
3. Leading investment ban...

1. Citigroup
2. Morgan Stanley
3. Credit Suisse
4. Nomura Securities
5. Raymond James
4. Key Investment Banking...

1. Traditionally, the best-known and often the most profitable investment
banking service is security underwriting (bảo lãnh chứng khoản)
2. Leveraged buyouts (LBOs)
3. Recently, many investment banks jumped into the hedge fund

business
1. Traditionally, the best-kn...

1. The purchase for resale (mua lại) of new stocks, bonds, and other financial
instruments in the money and capital markets on behalf of clients who need to
raise new money
2. One of the most profitable underwriting services – initial public offerings

(IPOs)
2. Leveraged buyouts (LBOs)

1. Involve the acquisition of a company, usually by a small group of
investors, and typically are funded by large amounts of debt
For example, the management of a firm may desire to buy out its
shareholders and remake the acquired firm to improve its p...
For example, the management of a firm may desire to

buy out its shareholders and remake the acquired firm
to improve its performance and value. The purchase
may be funded by a large bond issue, bank loan, or
other form of indebtedness
Investment
4. Key Investment ... banking
revenue
5. Examples of client quest...

1. Should we (the investment bank’s clients) attempt to
raise new capital? ...
2. Should our company enter new market areas at home or

abroad? ...
3. Does our company need to acquire or merge with other

firms? ...
1. Should we (the investment bank’s clients)

attempt to raise new capital?
If so, how much, where, and how do we go

about this fund-raising task?
2. Should our company enter new market

areas at home or abroad?
If so, how can we best accomplish this

market expansion strategy?
3. Does our company need to acquire or merge

with other firms?
Which firms and how? And when is the best

time to do so?
4. Should we sell our company to another firm?
If so, what is our company worth?
And how do we find the right buyer?

6. With passage of the Gra...

1. Research studies suggest that investment banking revenue
and profitability are positively, but not highly, corr...
2. It is not yet clear that the benefits alleged from this new
service dimension have offset the costs and risks involved
1. Research studies suggest that investment

banking revenue and profitability are positively,
but not highly, correlated with commercial
banking revenues and profitability
1. Research studies
suggest that invest...
There may be some significant
product-line diversification effects
7. Investment banks today are wrestling with the

question of what kind of financial firm they need to be
in the future
What mix of services should they be offering to

achieve high and sustained profitability?
7. Investment banks today ...

1. A few commercial bank–investment bank combinations have shown
promise for the future, despite ongoing struggles to fend off losses following
a huge mortgage market meltdown in 2007–2009
2. Recently both investment banks and commercial banks have been

under intense pressure to raise large amounts of new capital
3. Many observers anticipate more mergers

3. Many observers anticipa...

1. It is not clear that future commercial bank -investment
bank combinations will consistently turn out well
2. One likely outcome is greater government regulation

8. Bài tập
Câu hỏi:
- What’re ethics problems in the
investment banking industry?
- How can we mitigate (giảm bớt) it?
Câu hỏi:...
Trả lời:
- What’re ethics problems in the investment banking indu...
Trả lời:
- How can we mitigate (giảm bớt) it?...
Trả lời:
- What’re ethics problems in the
investment banking industry?
=> Among the most serious allegations
are that some security firms have
published false research information to
get their customers to purchase
securities the IBs most wanted to sell
Trả lời:
- How can we mitigate (giảm bớt) it?
=> A major challenge currently exists for the U.S. Securities and Exchange
Commission (SEC) about how to set up effective firewalls that separate security
sales functions from underwriting, advisory, and research functions inside IBs in a
way that restores public confidence in the fundamental honesty of the investment
banking and security trading businesses
4. Selling Investment Prod...

1. In recent years many of the largest business and household
depositors have moved their funds out of dep...
2. Investment Products
3. Several problems and risks are associated with sales of

investment products
4. Trust Services as a Source of Fee Income

1. In recent years many of the largest

business and household depositors have
moved their funds out of deposits at banks
and thrift institutions into investment
products
1. In recent years
many of the largest ...
Stocks, bonds, mutual funds, annuities,
and similar financial instruments
2. Investment Products
1. Mutual Fund Investment Products
2. Annuity Investment Products

1. Mutual Fund Investment...

1. One of the most popular of the investment products
2. Each share in a mutual fund permits an investor to receive a

pro-rata share of any dividends or other forms ...
3. If a mutual fund is liquidated, each investor receives a

portion of the net asset value (NAV) of the fund after its li...
4. Proprietary funds versus non-proprietary funds

2. Each share in a mutual fund permits an

investor to receive a pro-rata share of any
dividends or other forms of income
generated by a pool of stocks, bonds, or
other securities the fund holds
3. If a mutual fund is liquidated, each investor

receives a portion of the net asset value (NAV)
of the fund after its liabilities are paid off,
based on the number of shares each investor
holds
2. Annuity Investment Products
1. Annuities are a hedge against living too long and

outlasting one’s savings
2. Fixed annuities promise a customer who contributes a

lump sum of savings a fixed rate of return over the life of the
annuity contract
3. Variable annuities allow investors to invest a

lump sum of money in a basket of stocks,
mutual funds, or other investments under a tax-
deferred agreement, but there may be no
promise of a guaranteed rate of return
4. Recently a new type

of annuity contract h...
Combines the features of both
fixed and variable annuities
7. Benifits of Annuity Inves...

1. Tax-deferred growth
2. Fund your retirement
3. No contribution limits
4. Provide for Your Family

1. Tax-deferred
growth
You save money without paying taxes
on the interest until a later date
2. Fund your
retirement
Annuities create predictable
income streams for life
3. No contribution
limits
Unlike 401(k)s and IRAs you set
the dollar amount you invest
4. Provide for Your

Family
Death benefit riders allow you to transfer
your money to your loved ones.
7. Benifits of Annui... Summary

3. Several problems
and risks are associ...
Current U.S. regulations require that customers must be
told orally (and sign a document indicating they were so
informed) that investment products are:
Current U.S. regulations re...

1. Not insured by the Federal Deposit Insurance Corporation
(FDIC)
2. Not a deposit or other obligation of a depository institution and not

guaranteed by the offering institution
3. Subject to investment risks, including possible loss of principal

4. Trust Services as a Sour...

1. Trust services are the management of property owned by
customers, such as securities, land, buildings, and other
assets
2. Trust departments often generate large deposits

because they manage property for their customers
3. Deposits placed in a bank by a trust department must be

fully secured
1. Trust services are

the management of ...
Among the oldest nondeposit services that
banks and some of their closest competitors
offer parts of the financial firm
4. Popular kinds of trusts:

1. Living trusts
2. Testamentary trusts
3. Irrevocable trusts
4. Charitable trusts
5. Indenture trusts
5. Sales of Insurance-Relat...
1. Banks can use their branches to sell insurance
2. Types of insurance products sold today:
3. Life insurance underwriters and property/casualty

insurance underwriters manage their respective risks
4. There are mandatory public disclosures on the part of

depository institutions selling insurance products that
1. Banks can use their

branches to sell insu...
Over 100 banks today sell their own
insurance products in the United States
2. Types of insurance prod...

1. Life insurance policies
2. Property/casualty insurance policies

4. There are mandatory pu...

1. An insurance product or annuity is not a deposit or other
obligation of a depository institution or its affiliate
2. An insurance product or annuity sold by a depository

institution in the United States is not insured by the FDIC...
3. Insurance products or annuities may involve investment risk

and possible loss of value
2. An insurance product or annuity sold by a

depository institution in the United States is
not insured by the FDIC, any other agency of
the U.S. government, the depository institution
itself, or its affiliates
4. U.S. depository institutions cannot base granting

loans on the customer’s purchase of an insurance
product or annuity from a depository institution or any of
its affiliates or on the customer’s agreement not to
obtain an insurance product or annuity from an
unaffiliated entity
1. An insurance produ... These

disclosures
... must be made
both orally and
in writing bef...
4. U.S. depository insti...
These disclosures must be made both

orally and in writing before completion of
the sale of an insurance product
6. The Alleged Benefits of ...

1. When two or more different industry types merge with each other, this
strategic move is called convergence
2. One possible benefit is the relatively low correlation that may exist
between cash flows or revenues generated by the sale of traditional
industry products versus the sale of nontraditional products
3. This potential consequence of the convergence of two or more financial-

service industries is called the product-line diversification effect
2. One possible benefit is t...

1. But because streams of revenue from different product lines
may move in different directions at different times, t...
2. The risk of failure might also be reduced

1. But because streams of revenue from different product

lines may move in different directions at different times,
the overall impact of combining these different industries
and products under one roof may be to stabilize
combined cash flows and profitability
4. Example of what could ...

1. Suppose a banking company decides to add insurance services to its
existing product menu
2. It expects to earn a 12% average return from sales of its traditional banking
products and a 20% return from selling or underwriting insurance services
3. These two service lines are equally risky in the variance of their cash
flows (with a SD of about 5% each)
5. Các câu hỏi

1. What would happen to the bank’s overall return from sales of
traditional and nontraditional products in this case?
2. And what happens to the risk of return for this bank?
3. And what happens to the risk of return for this bank?

1. What would happen

to the bank’s overall ...
Trả lời
2. And what happens to

the risk of return f...
Trả lời
3. And what happens to

the risk of return f...
Trả lời
Offering both traditional and nontraditional banking services lowers the

bank’s standard deviation of its overall return
6. Other potential benefits ...

1. Economies of scope refer to a situation in which the joint
costs of producing two or more services in one firm are l...
2. For example, if a single financial firm produces two services

(S1 and S2), instead of producing only one servi...
1. Economies of scope refer to a situation in

which the joint costs of producing two or more
services in one firm are less than the
combined cost of producing each of these
services through separate firms
2. For example, if a single financial firm

produces two services (S1 and S2), instead of
producing only one service (S1), using the
same resources, its cost of production (C) may
be lower as follows
2. For example, if a
single financial firm ...
As a result, expanding the number of financial services offered may
result in more intensive use of resources, reducing overall costs
and widening a multiservice firm’s profit margin
7. Information Flows withi...

1. Financial firms have become more and more like pure information-gathering,
information-processing, and information-dispersing businesses
2. The Gramm-Leach-Bliley Act of 1999 allowed financial-service companies to

share customer information among their affiliated firms an...
3. Protecting customer privacy became increasingly more important

2. The Gramm-Leach-Bliley Act of 1999 allowed financial-

service companies to share customer information among
their affiliated firms and also with independently owned
third parties provided customers did not expressly say
“no” to (or “opt out” of) having their personal data
distributed to others
Key Items That

Must Be Included
7. Information Flow... in a Financial
Firm’s Privacy
Policy...
8. Quick Quiz
1. What services are provided by investment banks? Who are their
principal clients?
2. What advantages do commercial banks with investment banking

affiliates appear to have over competitors that do not offer investment
banking services? Possible disadvantages?
3. What are investment products? What advantages might they bring to an

institution choosing to offer these services?
Chapter 12: Managing and Pricing
Deposit Services
Thi
Chapter 12: Managing a...
1. Introduction
2. Types of Deposits Offered by Depository

Institutions
3. Các sản phẩm tiền gửi

Chapter 12: Managing and...
1. Introduction
1. Deposits are a key element in defining what a banking firm really does and
what critical roles it really plays in the economy
2. Moreover, deposits provide much of the raw material for making loans and,
thus, may represent the ultimate source of profits and growth for a depository
institution
3. Two key issues every depository institution must deal with in managing the
public’s deposits
3. Two key issues every de...

1. Where can funds be raised at lowest possible cost?
2. How can management ensure that the institution always has

enough deposits to support lending and other servic...
2. How can management ensure that the

institution always has enough deposits to
support lending and other services the
public
demands?
2. Types of Deposits Offere...

1. Transaction (Payment or Demand) Deposits
2. Nontransaction (Savings or Thrift) Deposits
3. Transaction Deposit
4. Types of Transaction Deposits

1. Transaction (Payment or...

1. Making payment on behalf of customers
2. One of the oldest services
3. Provider is required to honor any withdrawals immediately
4. Hottest item in the transaction deposit field today appears to be the

mobile check deposit
4. Hottest item in the

transaction deposit f...
Designed principally for customers on the move, carrying
camera-equipped smart phones
2. Nontransaction (Savings...
1. Longer-Term
2. Higher Interest Rates Than Transaction Deposits
3. Generally Less Costly to Process and Manage

3. Transaction Deposit
An account used primarily to make
payments for purchases of goods
and services
4. Types of Transaction Deposits

1. Noninterest-Bearing Demand Deposits
2. Interest-Bearing Demand Deposits

1. Noninterest-Bearing De...
1. Interest was prohibited by Glass-Steagall Act
2. One of the most volatile and unpredictable sources of

funds
3. Most deposits are held by business firms

2. Interest-Bearing Deman...
1. Negotiable Orders of Withdrawal (NOW)
2. Money Market Deposit Account (MMDA) and Super NOW

due to Garn-St Germain Depository Institution Act of 1982
3. Các sản phẩm tiền gửi

1. Cá nhân
2. Doanh nghiệp
1. Cá nhân
1. Tiền gửi thanh toán
2. Tiền gửi có kỳ hạn
3. Tiền gửi kinh doanh chứng khoán và tiền gửi chuyên dùng
4. Gói tài khoản

2. Doanh nghiệp
1. Tiền gửi thanh toán
2. Tiền gửi kỳ hạn
3. Tiền gửi chuyên dùng
4. Tiền gửi ký quỹ
5. Giấy tờ có giá
3. Tiền gửi chuyên

dùng
Là sản phẩm tiền gửi không kỳ hạn của khách hàng tổ chức mở tại
BIDV nhằm quản lý, sử dụng nguồn tiền trên tài khoản theo đúng
mục đích nhất định mà khách hàng yêu cầu và/hoặc theo yêu cầu
của cơ quan quản lý Nhà nước
4. Tiền gửi ký quỹ

Tiền ký quỹ là tiền gửi không thời hạn hoặc có kỳ
hạn của tổ chức tại BIDV nhằm đảm bảo việc
thực hiện một nghĩa vụ tài chính của tổ chức đó
đối với BIDV hoặc các bên liên quan.
5. Giấy tờ có giá
Là hình thức huy động vốn bằng việc xác nhận
nghĩa vụ trả nợ giữa BIDV với các tổ chức sở hữu
giấy tờ có giá (GTCG) trong một thời hạn, điều
kiện trả lãi và các điều kiện khác nhất định
Chapter 16
Thi
Chapter 6: Measuring and Evaluating the Performance of
Banks and Their Principal Competitors
Thi
Chapter 6: Measuring an...
1. Introduction
2. Evaluating Performance
Chapter 6: Measuring and ...
1. Introduction
1. This chapter focuses on the most widely used indicators of the quality and
quantity of bank performance and their principal competitors
2. Focus on the most important dimensions of performance – profitability and

risk
3. Financial institutions are simply businesses organized to maximize the

value of the shareholders’ wealth invested in the firm at an acceptable level of
risk
2. Evaluating Performance
1. Performance must be directed toward specific objectives
2. A fair evaluation of any financial firm’s performance should start by

evaluating whether it has been able to achieve the objectives its
management and stockholders have chosen
3. A key objective is to maximize the value of the firm
4. The minimum acceptable rate of return, r, is sometimes referred to as an

institution’s cost of capital
3. A key objective is to
maximize the value ...
4. The minimum
acceptable rate of re...
Two main components
Two main components

1. The risk-free rate of interest
2. The equity risk premium

5. The value of the financia...

1. The value of the stream of future stockholder dividends is expected to
increase
2. The financial organization’s perceived level of risk falls
3. Market interest rates decrease, reducing shareholders’ acceptable rates

of return via the risk-free rate of interest component of all market interest
rates
4. Expected dividend increases are combined with declining risk, as

8.If the dividends paid

to stock holders are ...
- D1 is the expected dividend in period 1
- r is the rate of discount reflecting the perceived level of risk
- g is the expected constant growth rate at which all future stock
dividends will grow each year
10. Most capital market

investors hav...
13. Key Profitability Ratios

1. ROE
2. ROA
3. Net interest margin
4. Net noninterest margin
5. Net operating margin

7. Earnings spread
Another traditional measure of earnings efficiency is the
earnings spread
Khi mức độ cạnh tranh thị trường cao

8. Useful Profitability Form...
NPM
AU
EM
EXHIBIT 6–1
Elements That
8. Useful Profitabili... Determine the
Rate of Return
Earned on the...
EXHIBIT 6–1 Elements That Determine

the Rate of Return Earned on the
Stockholders’ Investment (ROE) in a
Financial Firm
EXHIBIT 6–1 Elements

That Determine the ...
9. A slight variation of
the simple ROE mod...
10. We can also divide

a financial firm’s ret...
11. TABLE 6–2

Calculating Return o...
12. TABLE 6–3

Components of Retu...
Screenshot 2023-11-22 at
19.10.12.png
14. Achieving superior prof...

1. Careful use of financial leverage (or the proportion of
assets financed by debt as opposed to equity capital)
2. Careful use of operating leverage from fixed assets (or the

proportion of fixed-cost inputs used to boost operating earnings
as output grows)
3. Careful control of operating expenses so that more

dollars of sales revenue become net income
16. Among the more popul...

1. Standard deviation (σ) or variance (σ2) of stock prices
2. Standard deviation or variance of net income
3. Standard deviation or variance of return on equity (ROE)

and return on assets (ROA)
18. Bank Risks

1. Credit Risk
2. Liquidity Risk
3. Market Risk
4. Interest Rate Risk
5. Operational Risk
19. Other Goals in

Banking and Financi...
1. A rise in the value of the operating efficiency ratio often indicates an expense
control problem or a falloff in revenues, perhaps due to declining market
demand
2. In contrast, a rise in the employee productivity ratio suggests management

and staff are generating more operating revenue and/or re...
2. In contrast, a rise in the employee productivity ratio

suggests management and staff are generating more
operating revenue and/or reducing operating expenses
per employee, helping to squeeze out more product
with a given employee base
Chapter 5: The Financial Statements of
Banks and Their Principal Competitors
Thi
Chapter 5: The Financial...
1. Introduction
2. An Overview of Balance Sheets and Income Statements
3. The Financial Statements of Leading Nonbank Financial

Firms: A Comparison to Bank Statements
4. An Overview of Key Features of Financial Statements

and Their Consequences
Chapter 5: The Financial S...
1. Introduction
1. The particular services each financial firm chooses to offer and the
overall size of each financial-service organization are reflected in its
financial statements
2. Financial statements can be viewed as a “road map”
3. The two main financial statements that managers, customers, and the
regulatory authorities rely upon are
2. Financial statements
can be vi...
Tell us where a financial firm has been in the
past, where it is now, and possibly where it is
headed in the future
3. The two main financial s...

1. The balance sheet (Report of Condition)
2. The income statement (Report of Income)

2. An Overview of Balance ...

1. Balance Sheet
2. Income Stament
1. Balance Sheet
1. The Report of Condition (Balance sheet) shows the amount and
composition of funds sources (financial inputs) drawn upon to finance
lending and investing activities and how much has been allocated to loans,
securities, and other funds uses (financial outputs) at any given point in
time
1. The Report of Condition ...

1. A balance sheet lists the assets, liabilities, and equity capital (owners’
funds) held by or invested in a bank or other financial firm on any given date
2. For banks and other depository institutions, the ASSETS on the

balance sheet are of four major types
3. LIABILITIES fall into two principal categories:
4. Recent Expansion of Off-Balance-Sheet (OBS) Items in Banking

2. For banks and other dep...

1. Cash in the vault and deposits held at other depository institutions (C)
2. Government and private interest-bearing securities purchased in the

open market (S)
3. Loans and lease financings made available to customers (L)
4. Miscellaneous assets (MA)

1. Cash in the vault and

deposits held at...
Cash assets (C) are designed to meet
the financial firm’s need for liquidity
Cash assets (C) are design...

Account is called Cash and Deposits Due from Bank, includes:
- Vault Cash...
Sometimes called PRIMARY RESERVES

(Dự trữ bắt buộc - các ngân hàng phải giữ lại 1 khoản tiền của những
khoản tiền gửi)
Account is called Cash and Deposits Due from Bank, includes:

- Vault Cash
- Deposits with Other Banks (Correspondent Deposits) => Các ngân
hàng có tài khoản tại ngân hàng nước ngoài
- Cash Items in Process of Collection
- Reserve Account with the Federal Reserve
2. Government and private...

1. Private interest-bearing securities are debt securities that
are issued by private companies and sold to investors
2. Security holdings (S) are a backup source of liquidity and

include investments that provide a source of income
2. Security holdings (S) a...

1. Investment Securities - The Liquid Portion
2. Investment Securities - The Income-Generating Portion
3. Trading Account Assets
4. Federal Funds Sold and Reverse Repurchase Agreements

1. Investment Securities - ...

1. Short Term Government Securities
2. Privately Issued Money Market Securities
3. Often called SECONDARY RESERVES

...
2. Privately Issued Money ...

Interest Bearing Time Deposits
Commercial Paper
3. Often called SECONDARY RESERVES
(Mục đích là dùng để phòng bị trong trường

hợp Cash không đủ, mất thanh khoản)
2. Investment Securities - ...

1. Taxable Securities
2. Tax-Exempt Securities
1. Taxable Securities
1. U.S. Government Notes
2. Government Agency Securities
3. Corporate Bonds
2. Tax-Exempt
Securities
Municipal bonds
(income produced is free from federal, state,
and/or local taxes)
3. Trading Account Assets

1. Securities purchased to provide short-term profits from
short-term price movements
2. Occurs when the bank acts as a securities dealer
3. Valued at Market – FASB 115

4. Federal Funds Sold and ...

1. Includes mainly temporary loans (usually extended overnight, with the
funds returned the next day) made to other depository institutions, securities
dealers, or major industrial corporations
2. The funds for these temporary loans often come from the reserves a
bank has on deposit with the Federal Reserve Bank in its district
3. Some of these temporary credits are extended in the form of reverse

repurchase (resale) agreements (RPs) in which the banking firm acquires...
2. The funds for these

temporary loans oft...
“Fed funds”
3. Some of these temporary credits are extended in the

form of reverse repurchase (resale) agreements (RPs) in
which the banking firm acquires temporary title to
securities owned by the borrower and holds those
securities as collateral until the loan is paid off
3. Loans and lease

financings made ava...
Loans (L) are made principally to
supply income
Loans (L) are made princip...

1. Loan Accounts
The Major Asset
2. Types of Loans
3. Specific and General Reserves

1. Loan Accounts...
1. Gross Loans
(Sum of All Loans)
2. Allowance for Possible Loan Losses
3. Net Loans
4. Unearned Discount Income

(i.e. upfront loan interest)
2. Allowance for Possible ...

1. Contra Asset Account
2. For Potential Future Loan Losses

2. Types of Loans
1. Commercial & industrial (or business) loans
2. Consumer (or household) loans
3. Real estate (or property-based) loans
4. Financial institutions loans
5. Foreign (or intl.) loans

Another Way of
Classifying
2. Types of Loans Banks: By the
Types of Assets
They Hold
Another Way of
Classifying Banks: B...
3. Specific and General Reserves

1. Specific Reserves
2. General Reserves
1. Specific Reserves
1. Set aside to cover a particular Loan expected to be a
problem or that represent above-average risk
2. Designate a portion of ALL or
3. Add more reserves to ALL

2. General Reserves
1. Remaining ALL
2. Determined by management but influenced by taxes and

government regulation
3. Loans to lesser developed countries require allocated

transfer reserves
Câu hỏi:
- Suppose a bank
Loans (L) are made... has an allowance
for
+ Loan losses...
Câu hỏi:
- Suppose a bank has an allowance for
+ Loan losses of $1.25 million at the beginning of the year
+ Charges current income for a $250,000 provision for loan losses
+ Charges off worthless loans of $150,000
+ Recovers $50,000 on loans previously charged off.
- What will be the balance in the allowance for loan losses at year-end?
Câu hỏi:
- Suppose a bank ha...
Trả lời
4. Miscellaneous
assets (MA)
Miscellaneous assets (MA) are usually dominated
by fixed assets (plant and equipment) and
investments in subsidiaries (if any)
Miscellaneous assets (MA)...

1. Bank Premises and Fixed Assets
2. Other Real Estate Owned (OREO) (refers to commercial and residential

properties obtained to compensate for nonperforming loans)
3. Goodwill and Other Intangibles

3. LIABILITIES fall into two...

1. Deposits made by and owed to various customers (D)
2. Nondeposit borrowings of funds in the money and

capital markets (NDB)
3. Equity capital represents long-term funds the owners

contribute (EC)...
1. Deposits made by
and owed to various...
Deposits (D) are typically the main
source of funding for banks
Deposits (D) are typically t...

1. Noninterest-Bearing Demand Deposits
2. Savings Deposits
3. Now Accounts (permits checks, draft)
4. Money Market Deposit Accounts (MMDA)
5. Time Deposits (certificates of deposit, or CDs)

2. Nondeposit borrowings ...

Nondeposit borrowings are funds that a bank raises from sources other than
deposits. ...
Nondeposit borrowings (NDB) are carried out mainly to supplement

deposits and provide the additional liquidity that cash assets and
securities cannot provide
Nondeposit borrowings are funds that a bank

raises from sources other than deposits.
This can include borrowing from other banks,

issuing bonds, or selling commercial paper.
Nondeposit borrowings ar...

1. Fed Funds Purchased
2. Securities Sold Under Agreement to Repurchase

(Repurchase Agreements)
3. Acceptances Outstanding
4. Eurocurrency Borrowings
5. Subordinated Debt
- Là 1 dạng nợ "thứ cấp"
- Nghĩa là khoản nợ chỉ được thanh toán sau khi các khoản nợ
ưu tiên được trả xong
- Thường có lãi suất cao hơn các khoản nợ ưu tiên

3. Equity capital represents long-term funds the

owners contribute (EC)
Các ngân hàng muốn hoạt động dài hạn thì VCSH
phải càng tăng
3. Equity capital
represents long-ter...
Equity capital (EC) supplies the long-term, relatively stable
base of financial support upon which the financial firm will rely
to grow and to cover any extraordinary losses it incurs
Equity capital (EC) supplie...

1. Preferred Stock
2. Common Stock
3. Common Stock Outstanding
4. Capital Surplus
5. Retained Earnings
The
Composition of
Equity capital (EC) ... Bank Balance
Sheets
(Percentage ...
The Composition of Bank Balance Sheets

(Percentage Mix of Sources and Uses of
Funds for (Year-End 2009)
4. Recent Expansion of Off...

1. Unused Loan Commitments
2. Standby Credit Agreements

Hợp đồng bảo lãnh của ngân hàng
3. Derivative Contracts (hedging products)
4. OBS transactions expose a firm to counterparty risks

(unauthorized trading in derivatives)
1. Unused Loan
Commitments
In which lenders receive a fee to lend up to a certain amount
of money over the period, however these funds have not yet
been transferred from lenders to borrowers
2. Standby Credit
Agreements...
In which a financial firm receives a fee to
guarantee repayment of a loan that a customer
has received from another lender
3. Derivative Contracts (he...

1. Futures Contracts
2. Options
3. Swaps
1. Unused Loan Com... OBS items have

grown so rapidly
... that, for the
banking
industry as a ...
4. OBS transactions ex...
OBS items have grown so rapidly that,

for the banking industry as a whole,
they exceed total bank assets many
times over
OBS items have grown

so rapidly tha...
1. Examples of Off-Balance-Sheet Items
Reported by FDIC-Insured Banks
5. The Problem with Book-...

1. Original (historical, book-value) cost
2. Amortized cost
(traditional banking accounting procedure)
3. Market-value/Book value
4. Auditing: assuring reliability of financial statements

2. Amortized cost
(traditional banking ...
For example, if market interest rates on government bonds maturing in one year are
currently at 10 percent, a $1,000 par-value bond promising an annual interest (coupon)
rate of 10 percent would sell at a current market price of $1,000. However, if market
interest rates rise to 12 percent, the value of the bond must fall to about $980 so that the
investment return from this asset is also 12 percent.
3. Market-value/Book
value
Held-to-maturity (book value) and available for
sale securities (market value) (FASB issued Rule
115 in May 1993)
4. Auditing: assuring reliab...

1. Window Dressing
2. Auditing Financial Statements

1. Window Dressing
Là cho báo cáo tài chính đẹp lên
2. Auditing Financial Statements

1. Audit Committees
2. Sarbanes-Oxley Accounting Standards Act

5. The Problem wit... Examples

Examples
Example 3:
Norfolk National Bank has just submitted its Report of Condition to the FDIC.
Please fill in the missing items from its statement shown below (all figures in
millions of dollars)
1. Balance Sheet EQUATION

EQUATION
1. One useful way to view the balance sheet identity is to note
that liabilities and equity capital represent accumula...
2. A bank’s assets, on the other hand, are its accumulated

uses of funds, which are made to generate income for its...
3. Thus, the balance sheet identity can be pictured simply as:

1. One useful way to view the balance sheet

identity is to note that liabilities and equity
capital represent accumulated sources of
funds, which provide the needed spending
power to acquire assets
2. A bank’s assets, on the other hand, are its

accumulated uses of funds, which are made to
generate income for its stockholders, pay
interest to its depositors, and compensate its
employees for their labor and skill
Bài tâp 1:
- Suppose that a bank holds:
+ Cash in its vault of $1.4 million
(primary reserves)
+ Short-term government securities of
$12.4 million (secondary reserves)
+ Privately issued money market
instruments of $5.2 million (secondary
Bài tâp 1:
- Suppose that a ba...
The answer
2. Income Stament
1. The financial inputs and outputs on the Report of Income
(Income Statement) show how much it has cost t...
2. Components of the Income Statement (Report of

Income)
1. The financial inputs and outputs on the

Report of Income (Income Statement) show
how much it has cost to acquire funds and to
generate revenues from the uses the financial
firm has made of those funds
1. The financial inputs and ...

1. The Report of Income (Income Statement) also shows the
revenues (cash flow) generated by selling services to ...
2. The Report of Income (Income Statement) shows net

earnings after all costs are deducted from the sum of all r...
1. The Report of Income (Income Statement)

also shows the revenues (cash flow) generated
by selling services to the public, including
making loans and servicing customer deposits
2. The Report of Income (Income Statement) shows net

earnings after all costs are deducted from the sum of all
revenues, some of which will be reinvested in the
financial firm for future growth and some of which will
flow to stockholders as dividends
2. Components of the Inco...

1. Indicates the amount of revenue received and expenses
incurred over a specific period of time
2. Shows net earnings after all costs are deducted from the
sum of all revenues
3. Income statements are a record of financial flows over

time
1. Indicates the amount of ...

1. Shows how much it has cost to acquire funds and to generate
revenues from the uses of funds in the Report of Conditions
2. Shows the revenues (cash flow) generated by selling services to

the public
1. Indicates the amoun...

Equation
2. Shows net earnings ...
Equation
5. Four main sections

1. Interest income
2. Interest expenses
3. Noninterest income
4. Noninterest expenses
1. Interest income
1. Interest and Fees on Loans
2. Taxable Securities Revenue
3. Tax-Exempt Securities Revenue
4. Other Interest Income

1. Deposit Interest Costs
2. Interest on Short-Term Debt
3. Interest on Long-Term Debt

1. Interest income Net income =

Interest Income
(1) – Interest
Expenses (2)
3. Noninterest income
1. Fees Earned from Fiduciary Activities
2. Service Charges on Deposit Accounts
3. Trading Account Gains and Fees
4. Additional Noninterest Income

1. Wages, Salaries, and Employee Benefits
2. Premises and Equipment Expense
3. Other Operating Expenses

Net Noninterest
3. Noninterest income Income
= Noninterest
Income (3) –
Noninterest E...
Net Noninterest Income

= Noninterest Income (3) – Noninterest
Expenses (4)
5. Four main sectio... Example

Example
Example 4
Example 4
...
Anwser
Report of
Income (Income
Example 4... Statement) for
BB&T (2008 a...
Report of Income (Income Statement)

for BB&T (2008 and 2009)
3. The Financial Statement...

1. The financial statements of nonbank financial firms have, in recent
years, come closer and closer to what we see on bank statements
2. Other groups in the financial-service industries such as

- Finance companies...
1. The financial
statements of nonba...
Especially true of thrift institutions
(also known as S&Ls)
Especially true of thrift inst...

1. Thrifts’ balance sheet are dominated by loans, deposits from
customers, and borrowings in the money market
2. Thrifts’ income statements are heavily tilted toward revenue from loans and
by the interest they must pay on deposits and money market borrowings
2. Other groups in the financial-service industries such as

- Finance companies
- Life and property/casualty insurers
- Mutual funds
- Security brokers
- Dealers
2. Other groups in the

financial-service ind...
Their financial statements include sources and
uses of funds unique to the functions of these
industries
The Composition
of Bank Income
3. The Financial St... Statements
(Percentage o...
The Composition of Bank Income

Statements (Percentage of Total Assets
Measured as of Year-End 2009)
4. An Overview of Key
Features of Financia...
Table 5–8 provides a useful overview of the key features of the financial statements of
financial institutions and their consequences for the managers of financial firms and for
the public
Table 5–8 provides a

useful overview of th...
5. Quick Quiz
1. What are the principal accounts that appear on a bank’s balance sheet
(Report of Condition)?
2. Which accounts are most important and which are least important on the
asset side of a bank’s balance sheet? ...
3. What are primary reserves and secondary reserves, and what are they
supposed to do?
4. What accounts make up the Report of Income (income statement of a

2. Which accounts are most important and which are

least important on the asset side of a bank’s balance
sheet?
What accounts are most important on the liability side of

a balance sheet?
6. Exercises
Exercise 1
Exercise 2
Exercise 1
Đáp án
Exercise 2
Đáp án
2. An Overview of Bala...
Key Items on
... Bank Financial
Statements
6. Exercises
Key Items on Bank

Financial Statements
Noninterest income là ngân hàng thu tiền nhờ cung cấp dịch vụ
Hiện tại các ngân hàng đang giảm rủi ro bằng cách gia tăng
Noninterest income
Chapter 3: The Organization and
Structure of Banking and the Financial-
Services Industry
Chapter 3: The Organizatio...
1. Introduction
2. The Organization and Structure of the Commercial

Banking Industry
Chapter 3: The Organization ...
1. Introduction
1. Chapter 1 explored many of the roles and services of the modern bank and
competitors of banks
2. Over the years, bankers and the managers of competing financial

institutions have evolved into different organizational forms
3. A financial institution’s role and size are not the only determinants of how
it is organized or how well it performs
4. In this chapter, we will discuss the causes that have dramatically changed
2. The Organization and St...

1. Advancing Size and Concentration of Assets
2. Internal Organization of the Banking Firm
3. The Array of Organizational Structures and Types in the

Banking Industry
3. Interstate Banking Organizations and the Riegle-Neal

Interstate Banking and Branching Efficiency Act of 1994
1. Advancing Size and Con...

1. Commercial banking is the dominant supplier of credit and payments
services to businesses and households
2. Many banks in the United States are small by global standards
3. In contrast, the American banking industry also contains some of the

largest financial service organizations on the planet (chỉ chiếm 10% trên tổng
số lượng ngân hàng)
4. Thus, banking continues to be increasingly concentrated not only in the

2. Many banks in the

United States are s...
These smallest financial institutions, numerous as
they are, held little more than one percent of total
industry assets
3. In contrast, the
American banking in...
Citigroup, JP Morgan Chase, and the Bank of
America hold about 6 trillion dollars combined
1. Commercial banking...
... EXHIBIT
4. Thus, banking conti...

EXHIBIT
1. The Structure of the U.S. Commercial Banking Industry,
December 31, 2009
2. Small and Medium-Size U.S. Banks Lose Market Share to

the Largest Banking Institutions
1. The Structure of the U.S...

2. Small and Medium-Size ...

2. Internal Organization of ...

1. The great differences in size across the industry that have appeared in
recent years have led to marked differences in the way banks and o...
2. Community Banks and Other Community-Oriented Financial Firms
3. Larger Banks – Money Center, Wholesale and Retail
4. Trends in Organization
1. The great differences in size across the industry that

have appeared in recent years have led to marked
differences in the way banks and other service
providers are organized internally and in the variety of
financial services each institution sells in the markets
it chooses to serve
2. Community Banks and ...

1. Devoted principally to the markets for smaller, locally
based deposits and loans and are often referred to as a
retail bank
2. Financial firms of this type stand in sharp contrast to

wholesale banks
3. Community banks are usually significantly impacted by

changes in the health of the local economy and keeping up with
2. Financial firms of
this type stand in sh...
Close contact between top management and management and
staff of each division is common
Tại sao các ngân hàng

loại này không thể m...
Định hướng của các loại ngân hàng là phục vụ
một số khách hàng tại khu vực nào đó
1. Devoted principally t... Organization

Chart for a
... Smaller
Community
Bank
Tại sao các ngân hàng...
3. Larger Banks – Money C...

1. A large money center bank is usually located in a large city and has a
focus towards wholesale or wholesale plus retail
2. Some of the largest banks have moved toward the profit-centered or

performance approach
3. The largest money-center banks possess some important advantages over

community oriented institutions
2. Some of the largest

banks have moved t...
1. Each major department strives to maximize its
contribution to profitability or to some other
performance indicator
3. The largest money-cent...

1. Better diversified – both geographically and by product line
2. Can better withstand the risks of a fluctuating economy
3. Able to raise huge amounts of financial capital at

relatively low cost
4. Can attract top managerial talent

2. Can better withstand

the risks ...
Do ngân hàng tập trung dàn trải
các loại sản phẩm
3. Able to raise huge

amounts of financial...
Do các ngân hàng này có uy tín với thị trường quốc tế => Dễ
dàng tiếp cận thị trường vốn quốc tế
5. Khác
1. Có thể chào bán với mức lãi suất thấp hơn
2. Các giao dịch ngoại tệ lớn đều tập trung giao dịch vào các
ngân hàng này
Organization
Chart for a
3. The largest mon... Money Center or
Wholesale Bank
Serving ...
Organization Chart for a Money Center or

Wholesale Bank Serving Domestic and
International Markets
4. Trends in Organization
1. The tendency in recent years has been for most financial institutions to
become more complex organizations over time
2. Another significant factor influencing financial organizations today is the

changing makeup of the skills financial-service providers need to function
effectively
1. The tendency in
recent years has be...
1. When a financial firm begins to grow, it
usually adds new services and new facilities
2. Another significant fact...

1. Financial firms have needed growing numbers of people with computer skills
2. Call centers have grown in the industry to sell profitable services and
respond to customer problems
3. Automated bookkeeping has reduced the time managers spend in

routine operations
1. The tendency in rec...

Bài tập
2. Another significant f...
Bài tập
Câu hỏi 1:
Is call centre at risk of disappearing?
Câu hỏi 2:
Is digitalization truly a threat to the call center industry?
Câu hỏi 1:
Is call centre at risk ...
No, the call center as we know it
today took a while to develop
Câu hỏi 2:
Is digitalization truly ...
No, because the growth of internet, as website became central point of contact and sales
for many companies and call center became essential to deal customer service and
technical support issues
3. The Array of Organizatio...

1. There are so many different types of financial institutions today that the
distinctions between these different types of organizations often get very
confusing
2. Unit Banking Organizations
3. Branching Organizations
4. Branching’s Expansion
1. There are so many differ...

1. Insured banks
2. State chartered banks
3. National banks
4. Member banks
1. Insured banks
Most are labelled as “insured” because
their charter has been issued by a federal
insurance (FDIC) to back their deposits
and reassure the public
2. State chartered
banks
Banks and other depositors are classified as the
financial services commission of a particular state
has issued a charter of incorporation
3. National banks
Banks are labelled as national banks
because their charters have been issued
by a federal government agency
4. Member banks
Member banks belong to the
Federal Reserve System
Commercial
Banks with
1. There are so ma... Federal versus
State Charters,
Membership i...
Commercial Banks with Federal versus State

Charters, Membership in the Federal Reserve
System, and Deposit Insurance from the
Federal Government (as of December 31,
2009)
2. Unit Banking Organizations

1. Unit banks, one of the oldest kinds, offer all of their
services from one office
2. These organizations are still common today
3. Many new banks start out as unit organizations (Chỉ

cung cấp 1 số dịch vụ giới hạn)
1. Unit banks, one of

the oldest kinds, off...
Some services (such as taking deposits, cashing checks, or paying
bills) may be offered from limited-service facilities, such as drive-up
windows and automated teller machines (ATMs)
2. These organizations are ...

1. One reason for the large numbers of unit banks is the
continuing formation of new banks
2. Many customers still seem to prefer smaller banks, which

often seem to know their customers better than larger banks
1. Unit banks, one of t...

Entry and Exit
... in U.S. Banking
3. Many new banks sta...

Entry and Exit in U.S.

Banking
3. Branching Organizations
1. As a unit financial firm grows larger in size it usually decides at some point
to establish a branching organization
2. They offer the full range of services from several locations, including a head
office and one or more full-service branch offices
3. Senior management of a branching organization is usually located at the

home office, though each full-service branch has its own management team
with limited authority to make decisions
2. They offer the full

range of services fro...
Likely to offer limited services through a supporting network of drive-in
windows, ATMs, computers networked with the bank’s computers,
point-of-sale terminals in stores and shopping centers, the Internet, and
other advanced communications systems
Likely to offer limited

services through a s...
Do hành vi khách hàng thay đổi (phần lớn
khách hàng giao dịch trên internet), nên các
mô hình hiện tại không có phát triển nữa
1. As a unit financial fir...

The Branch
... Banking
Organization
3. Senior management...
4. Branching’s Expansion
1. During the Great Depression of the 1930s, only one in five American
banks operated a full-service branch office
2. By the beginning of the 21st century, the average U.S. bank operated close
to 12 full-service branch offices
3. The passage of the Riegle-Neal Interstate Banking and Branching

Efficiency Act in 1994 provided the basis for expansion
2. By the beginning of
the 21st century, the...
One contributing factor has been the exodus of
population from cities to suburban communities
3. The passage of the

Riegle-Neal Interstat...
However, in recent years new bank branch
office expansion appears to have slowed
somewhat
Growth of
Commercial
4. Branching’s Exp... Bank Branch
Offices in the
United States
5. Electronic Branching
– Website...
Networks: An Alternative or a
Supplement to Traditional Bank...
Networks: An Alternative or a Supplement to Traditional Bank

Branch Offices?
- Electronic branches
- Internet banking services
- Automated teller machines (ATMs)
- Point-of-sale (POS) terminals
- Personal computers
- Call-center systems
- Virtual banks
Electronic
Banking
5. Electronic Branc... Systems,
Computer
Networks, an...
Electronic Banking Systems, Computer

Networks, and Web Banking: An Effective
Alternative to Full-Service Branches?
Electronic Banking
Systems, Computer ...
Virtual banking
6. Holding Company Organizations

1. A bank holding company is simply a corporation chartered for the purpose
of holding the stock of at least one bank, often along with other businesses
2. The growth of holding companies has been rapid in recent decades
3. The principal reasons for this rapid upsurge:
4. Most registered bank holding companies in the United States are one-bank
companies
3. The principal reasons fo...

1. Access to capital markets in raising funds
2. Ability to use higher leverage
3. Tax advantages
4. Ability to expand into businesses outside banking

4. Most registered bank

holding compa...
However, these one-bank companies
frequently control one or more nonbank
businesses as well
1. A bank holding com... The 10 Largest

Bank Holding
... Companies
Operating in the
United St...
4. Most registered ban...
The 10 Largest Bank Holding

Companies Operating in the United
States (Total Assets as Reported on
June 30, 2010)
6. A minority of bank
holding company or...
Multibank companies control more than 70
percent of the total assets of all U.S. banking
organizations
7. One dramatic effect of h...

1. Banks acquired by holding companies are referred to as
affiliated banks
2. Banks not owned by holding companies are known as

independent banks
5. The principal advant... The Most

Important
... Nonbank
Financially
Related Busin...
7. One dramatic effect ...
9. Supporters of the holdin...

1. The holding company as a whole tends to be more profitable than
banking organizations that do not form holding companies
2. Moreover, the failure rate for holding company banks appears to

be below that of comparable-size independent banks
The Multibank
6. Holding Compa... Holding
Company
3. Interstate Banking Orga...

1. Riegle-Neal allows holding companies to acquire banks
throughout the United States without needing any state’s...
2. Why did the federal government eventually enact and the

states support interstate banking laws?
1. Riegle-Neal allows holding companies to

acquire banks throughout the United States
without needing any state’s permission to do
so and to establish branch offices across state
lines
2. Why did the federal gov...

1. The need to bring in new capital to revive struggling local economies
2. The expansion of financial-service offerings by nonbank financial
3. A strong desire on the part of the largest financial firms to

geographically diversify their operations and open up new marketing
opportunities
4. The belief among regulators that larger financial firms may be more
efficient and less prone to failure
4. An Alternative Type of B...

1. Under the terms of the Gramm-Leach-Bliley (GLB) Act,
financial holding companies (FHCs) are defined as a spe...
2. With the FHCs, each affiliated financial firm has its own
3. Led to consolidation and convergence within the

industry
1. Under the terms of the Gramm-Leach-Bliley (GLB) Act,

financial holding companies (FHCs) are defined as a
special type of holding company that may offer the
broadest range of financial services, including dealing in
and underwriting securities and selling and underwriting
insurance
2. With the FHCs, each affil...

1. Capital
2. Management
3. Profits or losses separate from the profits or losses of other affiliates of

the FHC
4. Some protection against companywide losses

The Financial
4. An Alternative Ty... Holding
Company (FHC)
The Financial Holding

Company (FHC)
Hiện tại chính phủ Việt Nam không cho phép các tập đoàn được quyền sở hữu ngân hàng vì có nguy cơ các
ngân hàng này sử dụng vốn phục vụ cho chính hệ sinh thái của tập đoàn đó => có khả năng không sử dụng vốn
1 cách thiếu thận trọng => Gây rủi ro tín dụng => Có khả năng gây thiệt người cho nhà đầu tư, người gửi tiền
5. Mergers and Acquisition...

1. The rise of branching, bank holding companies, and financial holding
companies has been fueled by multiple factors
2. Another powerful factor spurring these organizational types forward is their

ability to carry out mergers and acquisitions
3. Bigger companies have pursued smaller financial-service providers and

purchased their assets in great numbers
6. The Changing Organizat...

Great structural and organizational changes have “spilled over” into one
financial-service industry after another
1. Banking’s principal competitors – credit unions, savings associations,

finance companies, insurance firms, security dealers, hedge funds, and other
financial firms
2. All are affected by powerful forces such as rising operating costs and
rapidly changing technology
4. All financial firms are st...

1. Convergence
2. Since 1980 more than 12,000 bank mergers have

occurred in the United States
Bài tập về nhà

Câu hỏi:
What similarities and difference...
Câu hỏi:
What similarities and differences are between
Asian (China, Japan) and European banking
industries (Germany, UK)? => (Trang 104 trong
sách)
a. Similarities:
- Đều là những khu vực tập trung những ngân
hàng lớn
Chapter 2: Tác động của chính sách và quy
định của Chính phủ đối với ngành dịch vụ tài
chính
Xem lại sách

Chapter 2: Tác động của c...
1. Quy định của ngân hàng
2. Major Banking Laws – Where and When the Rules Originated
3. The Central Banking System: Its Impact on the Decisions and Policies of
Financial Institutions
Bài tập
Chapter 2: Tác động của chí...
1. Quy định của ngân hàng

1. Tại sao ngân hàng được quản lý chặt chẽ
2. Các cơ quan quản lý chính của ngân hàng và trách

nhiệm của họ
1. Tại sao ngân hàng đượ...

1. Các ngân hàng là một trong những kho lưu trữ hàng
đầu của tiền tiết kiệm công cộng
2. Các ngân hàng được theo dõi chặt chẽ vì khả năng tạo ra
tiền dưới dạng tiền gửi có thể chi tiêu dễ dàng bằng cách cho
vay và đầu tư.
3. Các ngân hàng có lịch sử lâu dài về sự tham gia của

chính quyền liên bang, tiểu bang và địa phương
2. Các ngân hàng được

theo dõi chặt ...
1. Ngân hàng trung ương phải có giám sát/thanh tra định kỳ =>
Hạn chế rủi ro hệ thống tài chính để nền kinh tế được phát triển
(đảm bảo lạm phát thấp và tỷ lệ thất nghiệp thấp)
3. Các ngân hàng có

lịch sử lâu dài về sự...
Ngân hàng/nhà nước và Tài chính/Kinh tế có mối quan hệ chặt chẽ lẫn nhau.
Vì ngân hàng tài trợ cho hoạt động của chính phủ và hoạt động kinh tế (cho DN vay)
2. Các cơ quan quản lý

chính của ngân hà...
Banking’s Principal Regulatory
Agencies and Their Responsibilities
Banking’s Principal
Regulatory Agencies...
Các ngân hàng phải mua bao hiểm tiền gửi
vì để gia tăng lòng tin với người dân
2. Major Banking Laws – W...

1. The Federal Reserve Act (1913)
2. The Banking Act of 1933 (Glass-Steagall)
3. The FDIC Improvement Act (1991)
4. Social Responsibility Laws
TABLE 2–2 Regulators of U.S. Insured Banks

1. The Federal Reserve Act (1913)

1. A series of financial panics in the late 19th and early 20th centuries led
to the creation of the Federal Reserve System (the Fed)
2. The Fed’s principal roles are to serve as a lender of last resort and to
help stabilize the financial markets and the economy
3. Their most important job today is to control money and credit

conditions to promote economic stability
2. The Banking Act of 1933...

1. The Glass-Steagall Act defined the boundaries of commercial banking by
providing constraints that were effective for more than 60 years
2. This legislation separated commercial banking from investment

banking and insurance
3. The Federal Deposit Insurance Corporation (FDIC) was created to

guarantee the public’s deposits up to a stipulated maximum amount in order
to enhance public confidence in the banking system
3. The Federal Deposit

Insurance Corporati...
Initially $2,500 and today it is up to $250,000
=> Main purpose is public confidence

3. The FDIC Improvement ...

1. The FDIC was the object of criticism during the 1980s and 1990s
2. This legislation permitted the FDIC to borrow from the Treasury to remain
solvent, called for risk-based insurance premiums, and defined t...
3. Prior to 1993, the FDIC imposed fixed insurance premiums on all deposits
eligible for insurance coverage, regardless of the riskiness of an individual
depository institution’s balance sheet
2. This legislation permitted the FDIC to borrow

from the Treasury to remain solvent, called for
risk-based insurance premiums, and defined the
actions to be taken when depository institutions
did not meet capital requirements
3. Prior to 1993, the

FDIC imposed fixed i...
This fixed-fee system led to a moral hazard problem (it encourages
depository institutions to accept greater risks because the government
was pledged to pay off their depositors if they failed).
4. Social Responsibility Laws

1. Consumer Credit Protection Act (known as Truth in
Lending)
2. Dodd-Frank Regulatory Reform bill
3. Equal Credit Opportunity Act

1. Consumer Credit
Protection Act (kno...
Rơequired that lenders spell out the customer’s
rights and responsibilities under a loan
agreement
2. Dodd-Frank
Regulatory Reform bill
Emphasized providing consumers with more
complete and understandable language to convey
service prices and avoid misleading information
3. Equal Credit
Opportunity Act
Individuals and families could not be denied a loan merely
because of their age, sex, race, national origin, or religious
affiliation, or because they were recipients of public welfare
TABLE 2–2 Regulators

of U.S. Insured Banks
5. The Financial
Services Modernizat...
1. One of the most important U.S.
banking statutes signed into law
3. The Central Banking Sys...

1. The Central Bank’s Principal Task: Making and
Implementing Monetary Policy
2. The Open Market Policy Tool of Central Banking
3. Other Central Bank Policy Tools

1. The Central Bank’s Prin...

1. A central bank’s principal function is to conduct money and credit policy to
promote sustainable growth in the economy and avoid severe inflation
2. To pursue these important objectives, most central banks use a variety of

tools to affect the legal reserves of the banking system, the interest ra...
3. To influence the behavior of legal reserves, interest rates, and currency

values, central banks usually employ one or more of three main tools:
2. To pursue these important objectives, most central

banks use a variety of tools to affect the legal reserves
of the banking system, the interest rates charged on
loans made in the financial system, and relative
currency values in the global foreign exchange markets
3. To influence the behavio...

1. Open market operations (OMO)
2. The discount rate on loans to qualified financial

institutions
3. Legal reserve requirements on various bank liabilities

2. The discount rate on

loans to qualified...
Áp dụng giữa ngân hàng trung ương và các
ngân hàng thương mại trên thị trường liên
ngân hàng
2. The Open Market Policy ...

1. Open market operations (OMO) have become the principal tool of
central bank monetary policy
2. These transactions are conducted between the Fed’s trading desk and
selected primary dealers who meet the Fed’s qualifications
3. OMO is considered to be the most important policy tool for many central
banks because it can be used every day and, if a mistake is made or
conditions change, its effects can be quickly reversed
1. Open market
operations (OMO) ha...
In the United States, OMO involves the buying
and selling of U.S. Treasury bills, bonds, and
notes and selected federal agency securities
4. Central bank sales of

securities tend to ...
Interest rates tend to rise
5. In contrast, central
bank purchases of s...
Interest rates tend to fall
6. The FOMC targets

the federal funds rat...
In the hope that changes in the federal funds
rate will spread to other interest rates in the
economy
Leading Primary
Dealers
2. The Open Marke... Authorized to
Trade Securiti...
Leading Primary Dealers Authorized to

Trade Securities with the Federal
Reserve in order to Assist with Monetary
Policy (April 2010)
3. Other Central Bank Policy Tools

1. Many central banks are an important source of short-term loans for
depository institutions
2. When the Fed loans reserves, the supply of legal reserves expands
temporarily, which may cause loans and deposits to expand
3. The loan rate charged by the Fed, the discount rate, is set by each Reserve
bank’s board of directors and must be approved by the Federal Reserve
Board
2. When the Fed loans

reserves, the supply ...
When these discount window loans are repaid, the
borrowing institutions lose reserves and may be forced to
curtail the growth of their deposits and loans
6. Raising reserve
requirements means...
On the other hand, lowering reserve requirements releases
reserves for additional lending
7. Central banks rarely

change reserve requ...
Powerful impact, cannot easily be reversed
and because banks are less dependent on
deposits as a source of funds
8. One other important poli...

Through this policy tool, the central bank tries to bring psychological pressure
to bear on individuals and institutions to conform to its policies
Công cụ này được rất nhiều chính phủ sử dụng để thực hiện chính sách tiền
tệ
Through this policy tool, the central bank tries to bring psychological pressure
to bear on individuals and institutions to conform to its policies
Examples of moral suasion

1. Central bank officials testifying before legislative committees to explain what
the bank is doing and what its objectives are
2. Letters and phone calls sent to those institutions that seem to be

straying from central bank policies
3. Press releases urging the public to cooperate with central bank efforts to
strengthen the economy
Bài tập
Trả lời:
...
Trả lời:
Câu 1:
- Vai trò chính của Federal Reserve
System là: + Kiểm soát tỷ lệ lạm phát
+ Kiểm soát tỷ lệ thất nghiệp
=> Thúc đẩy kinh tế phát triển
- Chính sách thực hiện là Chính sách
Chapter 1: An overview of the
changing financial services sector
Chapter 1: An overview of ...
1. Introduction
2. What's banks?
3. The Financial System and Competing Financial-Service Institutions
4. Services Banks and Many of Their Closest Competitors Offer the

Public
Chapter 1: An overview of th...
1. Introduction
1. Banks are the principal source of credit (loanable funds) for millions of
individuals and families and for many units of government
2. Worldwide banks grant more installment loans to consumers

(individuals and families) than any other financial-service provider
3. The assets held by U.S. banks represent about one-fifth of the total
assets
3. The assets held by

U.S. banks represen...
1. In other nations banks hold half or more
of all assets in the financial system
2. What's banks?
1. Định nghĩa
2. Historically, banks have been recognized for the great

range of financial services they offer
3. Banking-type Firm
4. Khác biệt giữa Bank và định chế tài chính

1. Định nghĩa
1. The economic functions it performs
2. The services it offers its customers
3. The legal basis for its existence

2. Historically, banks
have been recognize...
1. Bank service menus are
expanding rapidly today to include
1. Bank service menus are ...

1. investment banking
2. insurance protection
3. financial planning
4. advice for merging companies
5. the sale of risk-management services to businesses and

3. Banking-type Firm
1. Commercial banks
2. Money center banks
3. Community banks
4. Savings banks
5. Cooperative banks
Định nghĩa các

3. Banking-type Firm ngân hàng
4. Khác biệt giữa Bank và ...

1. Định chế tài chính không được cung cấp các dịch vụ thanh toán (như
chuyển khoản)
2. Định chế tài chính không cho phép khách hàng rút tiền bất kỳ lúc nào
3. Định chế tài chính không cần mua bảo hiểm tiền gửi
4. Định chế tài chính không được ngân hàng trung ương tài trợ
5. Money-Centered Banks ...

1. Money-center Banks
2. Community banks
1. Money-center Banks
1. Industry leaders
2. Cover whole regions, nations, and continents
3. Offer the widest possible menu of financial services
4. Acquire smaller businesses
5. Face tough global competition

2. Community banks
1. Much smaller
2. Service local communities and towns
3. Offer a narrower, but often more personalized, menu of

financial services
6. The Legal Basis for Banking

1. A bank is any business offering deposits subject to withdrawal on
demand and making loans of a commercial or business nature
2. Congress then defined a bank as any institution that could qualify for
deposit insurance administered by the Federal Deposit Insurance
Corporation (FDIC)
2. Congress then
defined a bank as an...
1. Under federal law in the U.S., a bank had come to be
defined, not so much by its array of service offerings, but by
the government agency insuring its deposits
3. The Financial System an...

1. Roles of the Financial System
2. The Competitive Challenge for Banks
3. Leading Competitors with Banks

1. Roles of the Financial System

1. Encourage saving and to transfer those savings to individuals and
institutions planning to invest and needing credit to do so
2. This process of encouraging savings and transforming savings into

investment spending causes the economy to grow, new jobs to be created,
and living standards to rise
3. The financial system also provides a variety of supporting services:

3. The financial system als...

1. Payment services
2. Risk protection services
3. Liquidity services
2. The Competitive Challen...

1. Lately, the financial market share that banking
comprised has fallen
2. Some authorities in the financial-services field fear that this

apparent erosion of market share may imply that traditional
banking is dying
3. The banking industry’s largest customers have found

ways around banks to obtain the funds that they need
2. Some authorities in
the financial-service...
1. Other experts counter that banking is not
dying but changing by offering new services
and changing its form
3. The banking
industry’s largest cu...
1. Borrowing in the open market
3. Leading Competitors with Banks
1. Savings Associations
2. Credit Unions...
1. Financial-service providers are converging in terms of the

services they offer...
1. Savings Associations
2. Credit Unions
3. Fringe Banks
4. Money Market Funds
5. Mutual Funds (Investment
Companies)
6. Hedge Funds
7. Security Brokers and Dealers
1. Financial-service providers are converging in terms of the

services they offer
2. The U.S. Financial Services Modernization (Gramm-Leach-Bliley)

Act of 1999 has allowed many different types of financial firms to
offer the public one-stop shopping for financial services
3. The challenge of differentiating banks from other financial-

service providers is difficult today
4. Services Banks and Ma...

1. Services Banks Have Offered for Centuries
2. Services Banks and Many of Their Financial-Service

Competitors Began Offering in the Past Century
1. Services Banks Have Off...

1. Carrying Out Currency Exchange
2. Discounting Commercial Notes and Making Business

Loans
3. Offering Savings Deposits
4. Safekeeping of Valuables and Certification of Value

2. Services Banks and Ma...

1. Granting Consumer Loans
2. Financial Advising
3. Managing Cash
4. Offering Equipment Leasing
5. Making Venture Capital Loans

Thank you

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Quản trị và chiến lược

Quy định về thi

Quản trị và Chapter 4: Establishing New Banks,

Chapter 12: Managing and Pricing

Giáo trình dựa trên sách

Giáo trình dựa

2. Cấu trúc điểm

2. Cấu trúc điểm

1. Chartering a New (De Novo) Financial-Service Institution

2. Establishing Full-Service Branch Offices: Choosing

3. Establishing and Monitoring Automated Limited-Service

2. For most of the history of financial-service providers,

3. Customers’ views about what is convenient are

4. In deciding how they wil...

2. Establishing new full-service branch offices

3. Setting up limited-service facilities

1. Chartering a New (De N...

2. Government chartering agencies believe financial-service

3. The Bank Chartering Process in the United States

1. No one can start a finan...

2. Usually the founder stockholders must supply enough start-

2. Usually the founder stockholders must

2. Government chartering ...

2. Many financial firms are at the heart of the payments process to

3. They have the ability to create money (through granting credit)

3. The Bank Chartering Pr...

2. Generally, federal standards for receiving a bank charter are more

4. The choice between pur...

2. Benefits of Applying for a State Charter

1. Benefits of Applying for ...

2. In times of trouble, the technical assistance supplied to a

3. Federal rules can preempt state laws

2. In times of trouble, the technical assistance

2. Benefits of Applying for ...

2. The bank need not join the Federal Reserve System

3. Some states allow a bank to lend a higher percentage of its

4. State-chartered banks may be able to offer certain

4. Questions Regulators U...

2. How many competing banks, credit unions, finance

5. Factors Weighing on the...

2. Internal factors the organizers should consider include

1. External factors the org...

2. The need for a new financial firm

3. The strength and character of competition in supplying

2. Internal factors the orga...

3. Pledging of capital to cover the cost of filing a charter

6. Volume and Characteris...

2. There appears to be considerable public demand for more personalized

3. Analysis of charter approvals suggests that most new banks are

7. How Well Do New Chart...

2. Most new financial firms grow at a moderate to rapid rate

3. Despite a track record of loan losses that generally exceed those of

4. Research also suggests that early performance is strongly tied to the

7. New banks tend to

8. How can I start a bank?

1. Starting a bank involves a long organization process that

Extensive information about the organizer(s), the business

2. The proposed bank must first receive

3. All insured banks must comply with the

The guidelines require a bank to

8. Bài tập: E-banking

2. Establishing branches is usually much cheaper than chartering new

1. When an establishe... EXHIBIT 4–1