《货币银行和金融市场学》（米什金版)内部课件MishkinCh.ppt

Chapter 10 Banking Industry: Structure and Competition Evolution of the Banking Industry Financial innovation is driven by the desire to earn profits A change in the financial environment will stimulate a search by financial institutions for innovations that are likely to be profitable Responses to change in demand conditions Responses to changes in supply conditions Avoidance of regulations U.S. Has a Dual Banking System State banks chartered by state governments National banks chartered by federal government beginning in 1863 Primary Supervisory Responsibility of Bank Regulatory Agencies Comptroller of the Currency—national banks Federal Reserve and state banking authorities—state banks that are members of the Federal Reserve System Fed also regulates bank holding companies FDIC—insured state banks that are not Fed members State banking authorities—state banks without FDIC insurance Responses to Changes in Demand Conditions: Interest Rate Volatility Adjustable-rate mortgages Flexible interest rates keep profits high when rates rise Lower initial interest rates make them attractive to home buyers Financial Derivatives Ability to hedge interest rate risk Payoffs are linked to previously issued securities Responses to Changes in Supply Conditions: Information Technology Bank credit and debit cards Improved computer technology lowers the transaction costs Electronic banking ATM Home banking ABM Virtual banking Junk bonds Commercial paper market Securitization Avoidance of Regulations:Loophole Mining Reserve requirements act as a tax on deposits Sweep accounts Restrictions on interest paid on deposits led to disintermediation Money market mutual funds Decline of Traditional Banking As a source of funds for borrowers, market share has fallen Share of total financial intermediary assets has fallen No decline in overall profitability Increase in income from off-balance-sheet activities Decline of Traditional Banking Decline in cost advantages in acquiring funds (li