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Finance Assignment Misc. Problems




Question;3. What factors caused the decrease in loan volume relative to other assets on the balance sheets of commercial banks? How has each of these factors been related to the change and development of the financial services industry during the 1990s and 2000s? What strategic changes have banks implemented to deal with changes in the financial services environment?5. What are the major sources of funds for commercial banks in the United States? How is the landscape for these funds changing and why?6. What are the three major segments of deposit funding? How are these segments changing over time? Why? What strategic impact do these changes have on the profitable operation of a bank?7. How does the liability maturity structure of a bank?s balance sheet compare with the maturity structure of the asset portfolio? What risks are created or intensified by these differences?11. For each of the following banking organizations, identify which regulatory agencies (OCC, FRB, FDIC, or state banking commission) may have some regulatory supervision responsibility:a. State-chartered, nonmember non?holding company bank.b. State-chartered, nonmember holding company bank.c. State-chartered member bank.d. Nationally chartered non?holding company bank.e. Nationally chartered holding company bank.12. What are the main features of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994? What major impact on commercial banking activity occured from this legislation?13. What factors normally are given credit for the revitalization of the banking industry during the 1990s? How is Internet banking expected to provide benefits in the future?26. Megalopolis Bank has the following balance sheet and income statement.Balance Sheet (in millions)Assets Liabilities and EquityCash and due from banks $ 9,000 Demand deposits $ 19,000Investment securities 23,000 NOW accounts 89,000Repurchase agreements 42,000 Retail CDs 28,000Loans 90,000 Debentures 19,000Fixed Assets 15,000 Total liabilities $155,000Other assets 4,000 Common stock 12,000Total assets $183,000 Paid in capital 4,000Retained earnings 12,000Total liabilities and equity $183,000Income StatementInterest on fees and loans $ 9,000Interest on investment securities 4,000Interest on repurchase agreements 6,000Interest on deposits in banks 1,000Total interest income $20,000Interest on deposits 9,000Interest on debentures 2,000Total interest expense $11,000Operating income $ 9,000Provision for loan losses 2,000Other income 2,000Other expenses 1,000Income before taxes $ 8,000Taxes 3,000Net income $ 5,000For Megalopolis, calculate:a. Return on equityb. Return on assetsc. Asset utilizationd. Equity multipliere. Profit marginf. Interest expense ratiog. Provision for loan loss ratioh. Noninterest expense ratioi. Tax ratio27. Go to the FDIC website at and find the most recent break down of U.S. bank asset concentrations using the following steps. Click on ?Analysts.? From there click On ?FDIC Quarterly Banking Profile? and then click on ?Quarterly Banking Profile.? Click on ?Commercial Bank Section.?Then click on ?TABLE III-A. Full Year (or First XXX Quarters) 20XX, FDIC- Insured Commercial Banks.? This will bring the files up on your computer that contain the relevant data. How have the number and dollar value of assets held by commercial banks changed since 2012?1. What is the primary function of finance companies? How do finance companies differ from depository institution?2. What are the three major types of finance companies? To which market segments do each of these types of companies provide service?3. What have been the major changes in the accounts receivable balances of finance companies over the 35-year period 1977?2012?4. What are the major types of consumer loans? Why are the rates charged by consumer finance companies typically higher than those charged by commercial banks?


Paper#48638 | Written in 18-Jul-2015

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