Chapter 13 Study Guide John Wiley Sons（第十三章学习指南约翰·威利和儿子）.doc

CHAPTER 13 COMMERCIAL BANK OPERATIONS CHAPTER OVERVIEW AND LEARNING OBJECTIVES This chapter surveys the structure and importance of the U.S. commercial banking industry. The chapter describes the basic operation of commercial banks in terms of their sources and uses of funds as reflected in their major balance sheet accounts. The chapter explains how banks make decisions about risk-taking, funding, and pricing. The chapter discusses the development and structure of bank and financial holding companies. CAREER PLANNING NOTE: THE ENTRY LEVEL IN COMMERCIAL BANKING Large banks have a well-defined entry level for college graduates. New recruits complete one to two years of training. The first phase immerses them in accounting, finance, regulation, and the bank’s policies and procedures. The second phase involves rotations among the bank’s key lines of business. Then trainees undergo a placement process to find their first permanent assignment. Those ranking nearer the top of their training class will have more nearly their first choice. Today, banking involves a wide range of career options, both functionally and geographically. The nation’s largest banks now operate in practically all 50 states, and deliver many services either not permitted or not invented 20 years ago. READING THE WALL STREET JOURNAL: HITTING THE HIGHLIGHTS The Journal’s layout is designed to get a busy reader up to speed in a matter of minutes. In a hurry first thing in the morning? Scan the “What’s News” columns on the front page, then page through Section C (Money Investing). These items make up the financial world’s “daily brief”. TOPIC OUTLINE AND KEY TERMS I. An Overview of the Banking Industry A. Fewer banks, more branches. 1. Less than 8,000 banks: The number of banks has declined significantly as the industry has consolidated. 2. More than 80,000 banking offices: The number of branches has increased significantly as geographical restrictions on banking have relaxed. B. Many small bank