【PPT精品课件】货币金融学7版英文课件--10-大学课件2

Chapter10BankingIndustry:StructureandCompetition©2005PearsonEducationCanadaInc.10-2HistoricalDevelopmentoftheBankingIndustry©2005PearsonEducationCanadaInc.10-3FinancialInnovationInnovationisresultofsearchforprofitsResponsetoChangesinDemandMajorchangeishugeincreaseininterest-rateriskstartingin1960sExample:Adjustable-ratemortgagesFinancialDerivativesResponsetoChangeinSupplyMajorchangeisimprovementincomputertechnology1.Increasesabilitytocollectinformation2.LowerstransactioncostsExamples:1.Bankcreditanddebitcards2.Electronicbankingfacilities3.Junkbonds4.Commercialpapermarket5.Securitization©2005PearsonEducationCanadaInc.©2005PearsonEducationCanadaInc.10-4AvoidanceofExistingRegulationsRegulationsBehindFinancialInnovation1.ReserverequirementsTaxondeposits=ir2.Deposit-rateceilingsAsi,loopholeminetoescapereserverequirementtaxanddeposit-rateceilingsExamples1.Moneymarketmutualfunds2.Sweepaccounts10-5DeclineinTraditionalBankingLossofCostAdvantagesinAcquiringFunds(Liabilities)ithendisintermediationbecause1.Depositrateceilings2.Moneymarketmutualfunds3.Foreignbankshavecheapersourceoffunds:JapanesebankscantaplargesavingspoolLossofIncomeAdvantagesonUsesofFunds(Assets)1.Easiertousesecuritiesmarketstoraisefunds:commercialpaper,junkbonds,securitization2.Financecompaniesmoreimportantbecauseeasierforthemtoraisefunds©2005PearsonEducationCanadaInc.©2005PearsonEducationCanadaInc.10-6Banks’ResponseLossofcostadvantagesinraisingfundsandincomeadvantagesinmakingloanscausesreductioninprofitabilityintraditionalbanking1.Expandlendingintoriskierareas:e.g.,realestate2.Expandintooff-balancesheetactivities3.CreatesproblemsforregulatorysystemSimilarproblemsforbankingindustryinothercountries©2005PearsonEducationCanadaInc.10-7•TheBigSix,togetherwiththeLaurentianBankofCanada,theCanadianWesternBank,andanother8domesticbanksareCanada’sScheduleIbanks•ScheduleIIbanksaresomedomesticbanksandtheCanadiansubsidiariesofforeignbanks.AsofOctober2002,therewere31ScheduleIIbanksinCanada•AScheduleIIIbankisaforeignbankallowed(undercertainrestrictions)tobranchdirectlyintoCanada.AsofOctober2002,therewere21ScheduleIIIbanksinCanadaScheduleI,ScheduleII,andScheduleIIIBanks©2005PearsonEducationCanadaInc.10-8CanadianCharteredBanks©2005PearsonEducationCanadaInc.10-9•ScheduleIbanksandbigScheduleIIbanks(thosewithover$5billioninequitycapital)mustbewidelyheld:noindividualcanownmorethan10%ofanyclassofshares•SmallScheduleIIbankswithequitycapitallessthan$1billiondon’thavetobewidelyheld---thatis,mayhaveasignificantshareholder(morethan10%)•SmallScheduleIIbankswithequitycapitalinexcessof$1billionhavetobeatleast35%widelyheldPermittedOwnershipStructure©2005PearsonEducationCanadaInc.10-10•Anywidelyheldforeignbankcanown100%ofaCanadianbanksubsidiary(thatis,ofaforeignScheduleIIbank)•AnywidelyheldandregulatedCanadianfinancialinstitution,otherthanabank,mayown100%ofabank•ScheduleIIbankscanaddbranchestotheirinitialbranchonlywithministerialapproval•ScheduleIIIbankscanbranchdirectlyintoCanada,followingauthorizationbytheMinisterofFinance(Continued)©2005PearsonEducationCanadaInc.10-11•AsofOctober2002,therewere68charteredbanksinCanadaandaround8000intheUnitedStates•ThepresenceofsomanybanksintheU.S.reflectspastregulationsthatrestrictedtheabilityofthesefinancialinstitutionstoopenbranches•ManysmallU.S.banksstayedinexistencebecausealargebankcapableofdrivingthemoutofbusinesswasoftenrestrictedfromopeningabranchnearby•ItwaseasierforabanktoopenabranchinaforeigncountrythaninanotherstateintheU.S.ComparisonwiththeU.S.©2005PearsonEducationCanadaInc.10-12StructureoftheCommercialBankingIndustryintheUnitedStates©2005PearsonEducationCanadaInc.10-13TenLargestU.S.Banks©2005PearsonEducationCanadaInc.10-14BranchingRegulationsintheU.S.BranchingRestrictions:McFaddenActandDouglasAmendmentVeryanticompetitiveResponsetoBranchingRestrictions1.BankHoldingCompaniesA.AllowedpurchasesofbanksoutsidestateB.BHCsallowedwiderscopeofactivitiesbyFedC.BHCsdominantformofcorporatestructureforbanks2.AutomatedTellerMachinesNotconsideredtobebranchofbank,sonetworksallowed©2005PearsonEducationCanadaInc.10-15CompetitionAcrossAllFourPillarsandConvergence•Untilrecently,Canada’sfinancialservicesindustrywasregulatedbyinstitution(banks,securities,insurance,andrealestate).Thisapproachtoregulationhasbeenknownasthefour-pillarapproach•Recentlegislativechangesallowedcross-ownershipviasubsidiariesbetweenfinancialinstitutions•Asaresult,Canada’straditionalfourpillarshavenowconvergedintoasinglefinancialservicesmarketplace©2005PearsonEducationCanadaInc.10-16BankConsolidationBankConsolidation:Why?1.Thewayisnowopentoconsolidationintermsnotonlyofthenumberofbankinginstitutions,butalsoacrossfinancialserviceactivities2.Mega-mergersarelikelyontheway,likethatofCiticorpandTravelersintheU.S.3.Bankinginstitutionswillbecomenotonlylarger,butincreasinglycomplexorganizations,engaginginthefullgamutoffinancialserviceactivities©2005PearsonEducationCanadaInc.10-17BankConsolidation:ProsandConsBankConsolidation:AGoodThing?Cons:1.Rushtoconsolidationmayincreaserisktaking2.Fear