- •Part 1. Introduction to bank financial management in the financial – services industry.
- •Chapter 1. Overview of banking and the financial-services industry.
- •Financial-services firms and financial-services industry
- •Insurance companies: Life and property and casualty
- •The Role of Banks in the fsi
- •Types and classes of commercial banks
- •Table 1-1 Types and Classes of Commercial Banks
- •The legal definition of a bank and the nonbank bank
- •Bank holding companies: the dominant organizational form
- •Panel a. The Diversity of Large bhCs (June 30,1996)
- •Panel b. The Ten Largest bhCs in Terms of Market Capitalization
- •Intermediation versus disintermediation
- •And indirect finance versus direct finance
- •Intermediary
- •The Financial Cornerstones: Debt and Equity Claims
- •The pricing of Financial Assets
- •The Role and Function of Financial Markets and Securitization
- •Why Do Financial Intermediaries Exist?
- •The end of danking as we know it?
- •Figure 1 Levels. Changes. Growth, and Market Shares of Total Assets for Selected u.S. Financial Sectors, 1978 and 1995
- •Figure 2 «The End of Bonking As We Know It?»
- •The role of bank regulation and supervision
- •Figure 3 The Principal-Agent Problems of Regulated Financial institutions
- •Viewed in terms of a weakness-in-banking equation. The lesson for either a developed or a developing economy is unmistakably clear:
- •The regulatory dialectic (struggle model)
- •The risks of danking
- •Credit risk
- •The fisher effect, monetary discipline, and economic growth and development
- •Liquidity risk
- •External conditions: the risks of price-level and sectoral instabilities
- •Problem banks: identification, enforcement, and closure
- •Recapitulation and lessons
- •The Convenience Function
- •The Confidence Function
- •The Japanese Model, or Keiretsu Approach
- •The German Model, or Universal-Bank Approach
- •The Anglo-American Model, or Capital-Markets Approach
- •Источник профессионального текста
The Anglo-American Model, or Capital-Markets Approach
The Anglo-American approach relies on capital markets (direct finance) and a well-developed banking system (indirect finance) for allocating financial resources using debt and equity instruments. The discipline of an informed marketplace replaces centralized control of capital allocation and pricing. Asset prices, interest rates, and financial innovation, as described earlier in the chapter, play a critical role in allocating financial resources in a market economy.
Smith and Walter (1993] conclude that attempts to impose the Anglo-American model on developing or transforming economies runs the risk of public disillusionment and rejection of market-based ref9rms in general. They suggest a three-stage approach, beginning with the Japanese model, followed by the German model as a pragmatic intermediate step, and finishing with the capital-markets approach. Given the lack of an accounting, financial, and legal infrastructure in developing countries, where financial transparency is low and information costs are high, their recommendation has intuitive appeal.
Источник профессионального текста
Commercial bank financial management in the financial-services industry / Joseph F. Sinkey, Jr. 992 p. (3-28 p., 31-33 р.)
1 Table 1-2 also reveals that independent banks and OBHCs lost deposit market share over the years 1984 to 1994, while federal savings banks and state savings banks gained market share. The demise of the S&L industry is captured by the decline in market share from 26,5 percent (1984) and the decline in the number of S&Ls from 2882 (1984) to 776 (1994).
2 When parent debt is invested in subsidiaries as equity, the procedure is referred to as “double leverage.” Chapter 14 provides more details.
3 Two additional tax consideration encouraged the expansion of BHCs: (1) the opportunity to avoid local taxes by establishing subsidiaries in state or municipalities outside the institution’s headquarters area, and (2) the opportunity to avoid federal income taxes by conducting foreign operations through separately chartered subsidiaries rather than through foreign branches (i.e.. “tax havens”, such as the Caribbean island). Under present tax laws, since only repatriated income from subsidiaries is subject to U.S. tax, the incentive is to establish subsidiaries in low-tax countries and to repatriate as little income as possible.