Banking Chap 2
short term business credit
Commercial banks mostly specialize in
held to maturity securities
FASB 115 requires historical costs to be used for
Commercial Bank
A bank that accepts demand deposits and makes business loans
McFadden Act
Allowed the individual states to determine if a bank could branch within or outside its home state
Capital Asset Quality Management Quality Earnings Liquidity Sensitivity to market Risk
CAMELS
Regulation Z
Requires disclosure of as to why a costumer was denied credit
memorandum of understanding
a formal regulatory document that prescribes corrective action for a problem is
cease and desist order
a legal document that orders a firm to stop an unfair practice under full penalty of law
office of thrift supervision
a new charter to start a federal savings association is obtained from
State banking department
a new charter to start a state bank must be obtained from
Check 21 Act
allows any institiution to truncate the paper check at any point in the check clearing process
serve as guidelines for sound operating policies
bank regulations
Regulation B
Makes it illegal for any lender to discriminate on the basis of national origin
troubled asset relief program
designed to allow the us treasury to purchase distressed assets from financial institutions
12
fed rez has banks in how many districts of the country
federal reserve banks
national and state charters arent available for
5,000
orginally the FDIC insured deposits up to
Federal Reserve
primary federal regulator of state banks that are members of the FED
FDIC
primary federal regulator of state banks that arent members of the FED
Purpose of Bank Regulations
provide monetary stability, ensure safety and soundness of banks, provide a competitive financial sysem and protect consumers from abuses by banks
Protect Depositors
purpose of maintaing the safety and soundness of banks is to
Real estate Loans
savings and loans have historically specialized in
65%
savings institutions must maintain what % of their assets in housing related assets to be considered a qualified thrift lender
Deposit insurance fund
the federal deposit insurance reform act of 2005 created what
Agricultural lending office
whcih of the following is not a component of the farm credit system
FDIC
which of the following is the receiver of a failed depository institution
depository institutions
which type of financial insitiution has seen the largest drop in their share of US financial assets