货币金融学7版本英文课程--9-大学课程20.pptVIP

Chapter 9 Banking and the Management of Financial Institutions The Bank Balance Sheet Bank Operation T-account Analysis: Deposit of $100 cash into First Bank Assets Liabilities Vault Cash + $100 Chequable Deposits + $100(=Reserves) Deposit of $100 cheque into First Bank Assets Liabilities Cash items in process Chequable Deposits + $100 of collection + $100 First Bank Second Bank Assets Liabilities Assets Liabilities Chequable Chequable Reserves Deposits Reserves Deposits+ $100 + $100 – $100 – $100 Conclusion: When bank receives deposits, reserves ? by equal amount; when bank loses deposits, reserves ? by equal amount Principles of Bank Management 1. Liquidity Management 2. Asset Management Managing Credit Risk Managing Interest-rate Risk 3. Liability Management 4. Capital Adequacy Management Principles of Bank Management Liquidity Management Desired reserve ratio = 10%, Excess reserves = $10 million Assets Liabilities Reserves $20 million Deposits $100 million Loans $80 million Bank Capital $ 10 million Securities $10 million Deposit outflow of $10 million Assets Liabilities Reserves $10 million Deposits $ 90 million Loans $80 million Bank Capital $ 10 million Securities $10 million With 10% desired reserve ratio, bank still has excess reserves of $1 million: no changes needed in balance sheet Liquidity Management No excess reserves Assets Liabilities Reserves $10 million Deposits $100 million Loans $90 million Bank Capital $ 10 million Securities $10 million Deposit outflow of $ 10 million Assets Liabilities Reserves $ 0 million Deposits $ 90 million Loans $90 million Bank Capital $ 10 million Securities $10 million Liquidity Management 1. Borrow from other banks or corporations Assets Liabilities Reserves $ 9 million Deposits $ 90 million Loans $90 million Borrowings $ 9 million Securities $10 million Bank Capital $ 10 million 2. Sell Securities Assets Liabilities Reserves $ 9 million Deposits $ 90 million Loans $90 million Bank Capital $ 10