financial-markets-and-institutions-金融市場與機(jī)構(gòu)課件

FinancialMarketsandInstitutions

6thEditionPowerPointSlidesfor:ByJeffMaduraPreparedbyDavidR.DurstTheUniversityofAkron1RoleofFinancialMarketsandInstitutions

?2003South-Western/ThomsonLearningChapterObjectivesDescribethetypesoffinancialmarketsDescribetheroleoffinancialinstitutionswithfinancialmarketsIdentifythetypesoffinancialinstitutionsthatfacilitatetransactionsOverviewofFinancialMarketsFinancialmarketsprovideforfinancialintermediation--financialsavings(SurplusUnits)toinvestment(DeficitUnits)FinancialmarketsprovidepaymentssystemFinancialmarketsprovidemeanstomanageriskFinancialMarket:amarketinwhichfinancialassets(securities)suchasstocksandbondscanbepurchasedorsoldBroadClassificationsofFinancialMarketsMoneyversusCapitalMarkets

PrimaryversusSecondaryMarketsOrganizedversusOver-the-CounterMarketsOverviewofFinancialMarketsPrimaryvs.SecondaryMarketsPRIMARYNewIssueofSecuritiesExchangeofFundsforFinancialClaimFundsforBorrower;anIOUforLenderSECONDARYTradingPreviouslyIssuedSecuritiesNoNewFundsforIssuerProvidesLiquidityforSellerMoneyvs.CapitalMarketsMoneyShort-Term,<1YearHighQualityIssuersDebtOnlyPrimaryMarketFocusLiquidityMarket--LowReturnsCapitalLong-Term,>1YrRangeofIssuerQualityDebtandEquitySecondaryMarketFocusFinancingInvestment--HigherReturnsOrganizedvs.Over-the-CounterMarketsOrganizedVisibleMarketplaceMembersTradeSecuritiesListedNewYorkStockExchangeOTCWiredNetworkofDealersNoCentral,PhysicalLocationAllSecuritiesTradedofftheExchangesMoneyMarketSecuritiesDebtsecuritiesOnlyCapitalmarketsecuritiesDebtandequitysecuritiesDerivativeSecuritiesFinancialcontractswhosevalueisderivedfromthevaluesofunderlyingassetsUsedforhedging(riskreduction)andspeculation(riskseeking)SecuritiesTradedinFinancialMarketsDebtvs.EquitySecuritiesDebtSecurities:Contractualobligations(IOU)ofDebtor(borrower)toCreditor(lender)InvestorreceivesinterestCapitalgain/losswhensoldMaturitydateDebtvs.EquitySecuritiesEquitySecurities:ClaimwithownershiprightsandresponsibilitiesInvestorreceivesdividendsifdeclaredCapitalgain/losswhensoldNomaturitydate—needmarkettosellValuationofSecuritiesValueafunctionof:FuturecashflowsWhencashflowsarereceivedRiskofcashflowsPresentvalueofcashflowsdiscountedatthemarketrequiredrateofreturnValuedeterminedbymarketdemand/supplyValuechangeswithnewinformationInvestorAssessmentofNewInformationExhibit1.3EconomicConditionsIndustryConditionsFirmSpecificInformationImpactofFutureCashFlowsEvaluationofSecurityPricingInvestorDecisiontoTradeSecuritypricesreflectavailableinformationNewinformationisquicklyincludedinsecuritypricesInvestorsbalanceliquidity,risk,andreturnneedsFinancialMarketEfficiencyFinancialMarketRegulationToPromoteEfficiencyHighlevelofcompetitionEfficientpaymentsmechanismLowcostriskmanagementcontractsWhyGovernmentRegulation?ToMaintainFinancialMarketStabilityPreventmarketcrashesCircuitbreakersFederalReservediscountwindowPreventInflation--MonetarypolicyPreventExcessiveRiskTakingbyFinancialInstitutionsFinancialMarketRegulationWhyGovernmentRegulation?ToProvideConsumerProtectionProvideadequatedisclosureSetrulesforbusinessconductToPursueSocialPoliciesTransferincomeandwealthAllocatesavingtosociallydesirableareasHousingStudentloansFinancialMarketRegulationWhyGovernmentRegulation?FinancialMarketGlobalizationIncreasedinternationalfundsflowIncreaseddisclosureofinformationReducedtransactioncostsReducedforeignregulationoncapitalflowsIncreasedprivatizationResults:Increasedfinancialintegration--capitalflowstohighestexpectedrisk-adjustedreturnRoleofFinancialInstitutionsinFinancialMarketsInformationprocessingServespecialneedsoflenders(liabilities)andborrowers(assets)BydenominationandtermByriskandreturnLowertransactioncostServetoresolveproblemsofmarketimperfectionRoleofFinancialInstitutionsinFinancialMarketsTypesofDepositoryFinancialInstitutionsCommercialBanks$5TrillionTotalAssetsSavingsInstitutions$1.3TrillionTotalAssetsCreditUnions$.5TrillionTotalAssetsTypesofNondepositoryFinancialInstitutionsInsurancecompaniesMutualfundsPensionfundsSecuritiescompaniesFinancecompaniesSecuritypoolsRoleofNondepositoryFinancialInstitutionsFocusedoncapitalmarketLonger-term,higherriskintermediationLessfocusonliquidityLessregulationGreaterfocusonequityinvestmentsTrendsinFinancialInstitutionsRapidgrowthofmutualfundsandpensionfundsIncreasedconsolidationoffinancialinstitutionsviamergersIncreasedcompetitionbetweenfinancialInstitutionsGrowthoffinancialconglomeratesGlobalExpansionbyFinancialInstitutionsInternationalexpansionInternationalmergersImpactofthesingleEuropeancurrencyEmergingmarkets2DeterminationofInterestRates

?2003South-Western/ThomsonLearningChapterObjectivesExplainLoanableFundsTheoryofInterestRateDeterminationIdentifyMajorFactorsAffectingtheLevelofInterestRatesExplainHowtoForecastInterestRatesRelevanceofInterestRateMovementsChangesininterestratesimpacttherealeconomyInvestmentspendingInterestsensitiveconsumerspendingsuchashousingInterestratechangesaffectthevaluesofallsecuritiesSecuritypricesvaryinverselywithinterestratesVaryinginterestratesimpactretirementfundsandretirementincomeInterestrateschangesimpactthevalueoffinancialinstitutionsManagersoffinancialinstitutionscloselymonitorratesInterestrateriskisamajorriskimpactingfinancialinstitutionsLoanableFundsTheoryofInterestRateDeterminationTheoryofhowthegenerallevelofinterestratesaredeterminedExplainshoweconomicandotherfactorsinfluenceinterestratechangesInterestratesdeterminedbydemandandsupplyforloanablefundsLoanableFundsTheory,cont.Demand=borrowers,issuersofsecurities,deficitspendingunitSupply=lenders,financialinvestors,buyersofsecurities,surplusspendingunitAssumeeconomydividedintosectorsSlopeofdemand/supplycurvesrelatedtoelasticityorsensitivityofinterestratesSectorsoftheEconomyHouseholdSector--UsuallyanetsupplierofloanablefundsBusinessSector—UsuallyanetdemanderingrowthperiodsGovernmentSectorsStates—BorrowforcapitalprojectsFederal—BorrowforcapitalprojectsanddeficitspendingForeignSectors—Netsuppliersinceearly1980’sDemandforLoanableFundsSumofsectordemand(quantity)atvaryinglevelsofinterestratesSectorcashreceiptsinperiodless

thanoutlays=borrowerQuantitydemandedinverselyrelatedtointerestratesVariablesotherthaninterestratechangescauseshiftindemandcurveDemandforLoanableFundsInterestRateQuantityofLoanableFundsLoanableFundsTheoryHouseholdsdemandloanablefundstofinancehousing,automobiles,householditemsThesepurchasesresultininstallmentdebt.InstallmentdebtincreaseswiththelevelofincomeThereisaninverserelationshipbetweentheinterestrateandthequantityofloanablefundsdemandedHouseholdDemandforLoanableFundsLoanableFundsTheoryBusinessesdemandloanablefundstoinvestinassetsQuantityoffundsdemandeddependsonhowmanyprojectstobeimplementedBusinesseschooseprojectsbycalculatingtheproject’sNetPresentValueSelectallprojectswith+NPV’sBusinessDemandforLoanableFundsLoanableFundsTheoryNetPresentValueiscalculatedasfollows:CFt(1+k)tt=1n–INV+NPV=BusinessDemandforLoanableFundsLoanableFundsTheoryProjectswithapositiveNPVareacceptedbecausethepresentvalueoftheirbenefitsoutweighstheircostsIfinterestratesdecrease,moreprojectswillhaveapositiveNPVBusinesseswillneedagreateramountoffinancingBusinesseswilldemandmoreloanablefundsBusinessDemandforLoanableFundsLoanableFundsTheoryThereisaninverserelationshipbetweeninterestratesandthequantityofloanablefundsdemandedThecurvecanshiftinresponsetoeventsthataffectbusinessborrowingpreferencesExample:EconomicconditionsbecomemorefavorableExpectedcashflowswillincrease>morepositiveNPVprojects>increaseddemandforloanablefundsBusinessDemandforLoanableFundsLoanableFundsTheoryWhenplannedexpendituresexceedrevenuesfromtaxes,thegovernmentdemandsloanablefundsMunicipal(stateandlocal)governmentsissuemunicipalbondsFederalgovernmentanditsagenciesissueTreasurysecuritiesandfederalagencysecurities.GovernmentDemandforLoanableFundsLoanableFundsTheoryFederalgovernmentexpenditureandtaxpoliciesareindependentofinterestratesGovernmentdemandforfundsisinterest-inelasticDInterestRateQuantityofLoanableFundsGovernmentDemandforLoanableFundsLoanableFundsTheoryAforeigncountry’sdemandforU.S.fundsisinfluencedbythedifferentialbetweenitsinterestratesandU.S.ratesThequantityofU.S.loanablefundsdemandedbyforeigninvestorswillbeinverselyrelatedtoU.S.interestrates

ForeignDemandforLoanableFundsLoanableFundsTheoryTheaggregatedemandforloanablefundsisthesumofthequantitiesdemandedbytheseparatesectorsTheaggregatedemandforloanablefundsisinverselyrelatedtointerestratesAggregateDemandforLoanableFundsSectorSupplyofLoanableFundsHouseholdsaremajorsuppliersofloanablefundsBusinessesandgovernmentsmayinvest(loan)fundstemporarilyForeignsectoranetsupplieroffundsinlasttwentyyearsFederalReserve’smonetarypolicyimpactssupplyofloanablefundsSupplyofLoanableFundsSumofsectorsupply(quantity)atvaryinglevelsofinterestratesSectorcashreceiptsinperiodgreater

thanoutlays—lenderQuantitysupplieddirectlyrelatedtointerestratesVariablesotherthaninterestratechangescausesashiftinthesupplycurveInterestRateQuantityofLoanableFundsSLoanableFundsTheoryEquilibriumInterestRateAggregateDemandDA=Dh+Db+Dg+Dm+DfAggregateSupplySA=Sh+Sb+Sg+Sm+SfInequilibrium,DA=SADemandforLoanableFundsSupplyofLoanableFundsInterestRatesQuantityofLoanableFundsGraphicPresentationLoanableFundsTheoryGraphicPresentationWhenadisequilibriumsituationexists,marketforcesshouldcauseanadjustmentininterestratesuntilequilibriumisachievedExample:interestrateaboveequilibriumSurplusofloanablefundsRatefallsQuantitysuppliedreduced,quantitydemandedincreasesuntilequilibriumGeneralEquilibriumInterestRateMeansofexplaininghoweconomicfactorsaffectinterestratelevelsInterestratelevelwherequantityofaggregateloanablefundsdemanded=supplySurplusandshortageconditionsSurplus-Quantitydemanded<quantitysuppliedfollowedbymarketinterestratedecreasesShortageGovernmentinterestrateceilingsbelowmarketinterestratesInterestRateChanges+Directlyrelatedtolevelofeconomicactivityorgrowthrateofeconomicactivity+Directlyrelatedtoexpectedinflation–InverselyrelatedtoratesofmoneysupplychangesEconomicForcesThatAffectInterestRatesEconomicGrowthExpectedimpactisanoutwardshiftinthedemandschedulewithoutobviousshiftinsupplyNewtechnologicalapplicationswith+NPV’sResultisanincreaseintheequilibriuminterestrateEconomicForcesThatAffectInterestRates:TheFisherEffectLenderswanttobecompensatedforexpectedlossofpurchasingpower(inflation)whentheylendNominalInterestRates=Sumofrealrateplusexpectedrateofinflation,ExpectedRealRate(exante)=expectedincreaseinpurchasingpowerinperiodRealizedRealRate(expost)=nominalrateslessactualrateofinflationinperiodiEIinr=+()EconomicForcesThatAffectInterestRatesInflationTheFisherEffectNominalInterestRates=SumofRealRateplusExpectedRateofInflationinirE(I)+=Figure2.12hereYear-505101520AnnualizedRealInterest

RateAnnualizedInflationAnnualizedT-BillRate19961995199419991998199719931992199119901989198819871986198519841983198219811980EconomicForcesThatAffectInterestRatesInflationIfinflationisexpectedtoincreaseHouseholdsmayreducetheirsavingstomakepurchasesbeforepricesriseSupplyshiftstotheleft,raisingtheequilibriumrateAlso,householdsandbusinessesmayborrowmoretopurchasegoodsbeforepricesincreaseDemandshiftsoutward,raisingtheequilibriumrateEconomicForcesThatAffectInterestRatesMoneySupplyWhentheFedincreasesthemoneysupply,itincreasessupplyofloanablefundsPlacesdownwardpressureoninterestratesEconomicForcesThatAffectInterestRatesFederalGovernmentBudgetDeficitIncreaseindeficitincreasesthequantityofloanablefundsdemandedDemandscheduleshiftsoutward,raisingratesGovernmentiswillingtopaywhateverisnecessarytoborrowfunds,“crowdingout”theprivatesectorEconomicForcesThatAffectInterestRatesForeignFlowsInrecentyearstherehasbeenmassiveflowsbetweencountriesDrivenbylargeinstitutionalinvestorsseekinghighreturnsTheyinvestwhereinterestratesarehighandcurrenciesarenotexpectedtoweakenTheseflowsaffectthesupplyoffundsavailableineachcountryInvestorsseekthehighestrealafter-tax,exchangerateadjustedrateofreturnaroundtheworldForecastingInterestRatesAttemptstoforecastdemand/supplyshiftsForecasteconomicsectoractivityandimpactupondemand/supplyofloanablefundsForecastincrementaleffectsoninterestratesForecastinginterestrateshasbeendifficultSummary:KeyFactorsImpactingInterestRatesOverTimeEconomicGrowth—Increasedgrowth;increaseddemandforfunds;interestratesincreaseExpectedinflation--securitypricesfall;interestratesincreaseGovernmentbudgetsDeficit—increaseborrowing;securitypricesfall,interestratesincreaseSurplus—decreasedborrowing;securitypricesincrease;interestratesdecreaseIncreasedforeignsupplyofloanablefunds—securitypricesincrease;interestratesdecrease28

CreditUnionsChapterObjectivesDescribethemainsourcesandusesoffundsforcreditunionsPresentthetermsandconceptsrelatedtocreditunionsDescribehowcreditunionsareregulatedDescribehowcreditunionsareexposedtovariousformsofriskEvaluatetheperformanceofcreditunionsBackgroundofCreditUnionsCreditUnions(CUs)arenonprofit,mutualorganizationsMembershaveacommonbondsuchasanaffiliationwithLaborunionChurchUniversityResidentialareaThereareabout10,000creditunionsintheU.S.withapproximately20millionmembersTotalassetsofCUsarelessthanonetenththeamountincommercialbanksBackgroundofCreditUnionsOwnershipofcreditunionsCreditunionsdonotissuestockOwnedbydepositorsDepositsarecalledshares,andtheinterestpaidiscalleddividendsBecausetheyarenonprofitorganizationstheirincomeisnottaxedTheycanbeeitherfederallyorstatecharteredBackgroundofCreditUnionsObjectivesofcreditunionsSatisfytheirmembersOfferinterestonsharedepositsOfferloanstomembersWhataboutearningsthattheCUaccumulates?OfferhigherratesondepositsOfferlowerratesonloansAdvertisingcostsBackgroundofCreditUnionsSizeofCreditUnionsAfewCUshaveassetsofmorethan$1billion(e.g.theNavyFederalCU)Most,however,areverysmallAdvantagesofcreditunionsPaynofederalincometaxesEmployer-supportedfacilitiesExemptfromanti-trustlawsPowerfulgrass-rootslobbyandtradeassociationsCreditUnionDisadvantagesLimiteddiversificationEconomicrisksimpactfundsprovidersandborrowersHighliquidityneedsConcentrateddefaultriskManagementConcernsInternalcontrols—separationofdutiesVolunteersvs.professionalsSmallEntitiesDifficulttoattainscaleeconomiesSourcesofCreditUnionFundsCUsobtainmostfundsthroughsharedepositbymembersSimilartopassbooksavingsInsuredupto$100,000CUsalsooffersharecertificatesCompetewithCDsfromcommercialbanksCheckingaccountsarecalledsharedraftsCompetewithNOWaccountsSourcesofCreditUnionFundsIfCUsneedfundstemporarily,theycanborrowfromothercreditunionsorfromtheCentralLiquidityFacility(CLF)ActsasalenderforCUsmuchliketheFed’sdiscountwindowforbanksCLFisanemergencylendingfundthatispartofalargerinternalsystemcalledtheCorporateCreditUnionNetwork,whichisa“creditunionforcreditunions”TheprimarysourceofcapitalforCUsisretainedearningsUsesofCreditUnionFundsCUsusethemajorityoffundsforloanstomembersAutomobilesHomeimprovementsPersonalexpensesSomeCUsoffermortgagesCUsalsoinvestinsecuritiesRegulationofCreditUnionsFederalCUsaresupervisedandregulatedbytheNationalCreditUnionAdministration(NCUA)NCUAiscomposedofthreeboardmembersappointedbythepresidentGrantsandrevokesFederalchartersExaminesthefinancialconditionofFederalcreditunionsRegulationofCreditUnionsRiskassessmentNCUAexaminerscompareCUratioswithindustrynormstoidentifyproblemsEmploytheCAMELsystemmuchlikeFDICexaminersCapital,assets,management,earnings,andliquidityAssigneachCUintoariskcategoryrangingfromCode1(lowrisk)toCode5(highrisk)Lessthan10percentofCUsinCodes4or5AlertsexaminerstoCUsexperiencingproblemsCorporateRiskInformationSystem(CRIS)analysisRegulationofCreditUnionsCapitalrequirementsforFederalcreditunionsCUsaresubjecttocapitalrequirementsof8percentofrisk-weightedassets,4percentofprimarycapital(re