制卧台贸易上兰 银行管理学 5.The handling of failed banks by regulators also stimulates considerable discussion. Identify failed banks where insured depositors were fully protected(Bank of New England),while uninsured depositors lost part of their balances(Freedom National Bank in Harlem).Why do regulators not allow large banks to fail?Ask the students what the consequences of a large,money center or multinational bank failing might be. 6.Finally,discuss whether federal deposit insurance is truly insurance.Are premiums based on risk in the traditional insurance context?What does the government doe with the premiums paid by banks and savings and loans?Have students suggest alternative schemes. Chapter 7 The Effective Use of Capital Chapter Objectives 1.Explain the structure of risk-based capital standards at U.S.commercial banks. 2.Explain what the function of bank capital is both from the view of bank regulators and bank managers. 3.Demonstrate the influence of regulatory capital requirements on bank operating policies. 4.Describe what balance sheet items constitute bank capital. 5.Explain how the FDIC Improvement Act(FDICIA)established capital categories and prompt regulatory corrective actions associated with a bank's capital profile. 6.Discuss the characteristics and advantages and disadvantages of different types of internal and external capital 7.Describe the role and impact of Federal Deposit Insurance and proposals to improve current weaknesses the system. Key Concepts 1.Effective in 1992,U.S.commercial banks have been required to meet risk-based capital standards that require i)at least 4%tier I capital,primarily stockholders'equity,and ii)at least 8%total capital(tier I+tier 2 capital),primarily stockholders'equity,a portion of loan loss reserves and qualifying subordinated debt,as a fraction of risk assets to be adequately capitalized. 2.The importance of risk-based capital standards is that: a.minimum capital requirements are linked to a bank's credit risk.The greater is assumed credit risk,the more capital is required. b.stockholders'equity is recognized as the most important type of capital. c.minimum capital requirements for risky banks exceed the requirements for low risk banks d.capital requirements are now roughly equal across most of the industrialized countries throughout the world. e.capital is required in support of selected off-balance sheet activities. 第15页共29页银行管理学 第 15 页 共 29 页 5. The handling of failed banks by regulators also stimulates considerable discussion. Identify failed banks where insured depositors were fully protected (Bank of New England), while uninsured depositors lost part of their balances (Freedom National Bank in Harlem). Why do regulators not allow large banks to fail? Ask the students what the consequences of a large, money center or multinational bank failing might be. 6. Finally, discuss whether federal deposit insurance is truly insurance. Are premiums based on risk in the traditional insurance context? What does the government doe with the premiums paid by banks and savings and loans? Have students suggest alternative schemes. Chapter 7 The Effective Use of Capital Chapter Objectives 1. Explain the structure of risk-based capital standards at U.S. commercial banks. 2. Explain what the function of bank capital is both from the view of bank regulators and bank managers. 3. Demonstrate the influence of regulatory capital requirements on bank operating policies. 4. Describe what balance sheet items constitute bank capital. 5. Explain how the FDIC Improvement Act (FDICIA) established capital categories and prompt regulatory corrective actions associated with a bank’s capital profile. 6. Discuss the characteristics and advantages and disadvantages of different types of internal and external capital. 7. Describe the role and impact of Federal Deposit Insurance and proposals to improve current weaknesses the system. Key Concepts 1. Effective in 1992, U.S. commercial banks have been required to meet risk-based capital standards that require i) at least 4% tier 1 capital, primarily stockholders' equity, and ii) at least 8% total capital (tier I + tier 2 capital), primarily stockholders’ equity, a portion of loan loss reserves and qualifying subordinated debt, as a fraction of risk assets to be adequately capitalized. 2. The importance of risk-based capital standards is that: a. minimum capital requirements are linked to a bank's credit risk. The greater is assumed credit risk, the more capital is required. b. stockholders' equity is recognized as the most important type of capital. c. minimum capital requirements for risky banks exceed the requirements for low risk banks d. capital requirements are now roughly equal across most of the industrialized countries throughout the world. e. capital is required in support of selected off-balance sheet activities