ppt_ch02a-1 The Banking Sector 外汇与外汇市场 教学课件.pptVIP

Chapter 2 The Banking Sector Websites: .au .au .au Learning Objectives Evaluate the functions and activities of commercial banks Identify the main sources and uses of funds and reasons for changes Analyse the importance of changes in the role of banks on the financial system Learning Objectives (cont.) Examine the market structure of the banking sector Outline the nature and importance of banks off-balance-sheet (OBS) business Consider the regulation and prudential supervision of banks Chapter Organisation 2.1 Introduction 2.2 Functions of Banks 2.3 Sources of Funds 2.4 Uses of Funds 2.5 Off-balance-sheet Business 2.6 Regulation and Prudential Supervision 2.7 Summary 2.1 Introduction Banking Act 1959 (Cwlth) Authorises a financial institution to operate as a bank Three categories of banks Incorporated banks: domestic and foreign Unincorporated foreign bank branches Foreign bank representative offices 2.1 Introduction (cont.) Importance of banks Largest share of assets of all institutions Share declined 1950s to mid-1980s due to regulation which constrained development of banks supported evolution and growth in NBFIs Role in international financial markets Increase in managed funds activities and OBS business 2.1 Introduction (cont.) 2.1 Introduction (cont.) Today, Banks are becoming consolidated corporate entities that include subsidiary finance companies, managed funds, insurance companies, superannuation funds and other financial services. eg. Citigroup merger with Traveler’s Insurance Group 2.2 Functions of Banks Asset management (?1980s) Loans portfolio is tailored to match the available deposit base Liability management (1980s?) Deposit base and other funding sources are managed to fund loan demand Commercial bill market Provision of other financial services OBS 2.3 Sources of Funds Sources of funds appear in the balance sheet as either liabilities or shareholders funds Banks offer a range of deposit and investment products with different mixes