chapter 2 financial institutions l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 2: Financial Institutions PowerPoint Presentation
Download Presentation
Chapter 2: Financial Institutions

Loading in 2 Seconds...

play fullscreen
1 / 9

Chapter 2: Financial Institutions - PowerPoint PPT Presentation


  • 266 Views
  • Uploaded on

Chapter 2: Financial Institutions. What Do Financial Mkts. & Institutions Do?. Financial Intermediation Benefits of Intermediation Denominational Divisibility Maturity Flexibility Credit Risk Diversification Liquidity Kinds of Financial Institutions

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 2: Financial Institutions' - richard_edik


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 2 financial institutions
Chapter 2: Financial Institutions
  • What Do Financial Mkts. & Institutions Do?
slide2
Financial Intermediation
  • Benefits of Intermediation
    • Denominational Divisibility
    • Maturity Flexibility
    • Credit Risk Diversification
    • Liquidity
  • Kinds of Financial Institutions
    • Deposit Type Institutions: Issue Insured Deposits & Make Loans
      • Commercial Banks (8,500)
      • Savings & Loans or Savings Banks (Thrifts) – 1,600
      • Credit Unions – 12,000
slide3
Contractual Savings Institutions
    • Life Insurance Cos.
    • Casualty Insurance Cos.
    • Pension Funds
  • Other Types of Financial Institutions
    • Finance Cos.
    • Mutual Funds
      • Net Asset Value (NAV)
      • Open-ended
      • Close-ended (exchange traded)
      • Exchange Traded Funds (ETFs)
        • Spiders, Diamonds, Vipers, Oh My!
slide6
Risks Faced by Financial Institutions
    • Credit Risk
    • Interest Rate Risk
    • Liquidity Risk
    • Foreign Exchange Risk
    • Political Risk
  • Financial Institutions Make Money on the Spread & by Charging Fees for Service.
slide8
Data on Financial Institutions
    • http://www.federalreserve.gov/
    • http://www.fdic.gov/
    • http://www.cuna.org/
    • http://www.morningstar.com/
    • http://www.vanguard.com/
  • Homework: Find a the balance sheet & income statement for a financial institution.
key ratios
Key Ratios
  • NIM = (Int. Inc. – Int. Exp)/Totl. Assets
  • ROA = Net Inc./ Totl. Assets
  • ROE = Net Inc./ Equity
  • ROE = NI/Rev. * Rev./TA * TA/EQ
  • Rev. = Int. Inc. + Other Inc.