The Banking Industry
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford
The Banking Industry
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford
9-5: Banking Operations
Banks are inherently different from other companies, these factsheets discuss the accounting structure of a bank, deposits, loans, and leases.
9-8: Risk Weighted Assets & Capital Adequacy
This segment introduces how measures of risk can be quantified and applied to the balance sheet. Capital adequacy, the measure of a bank's ability to absorb turmoil is introduced.
Government Institutions & Regulation
10-4: Federal Financial Institutions & Regulation
Discussion of the Federal Reserve, FDIC, SEC, GSEs & SROs. Pertinent financial regulations in the United States are listed in Factsheet 10-3. Finance Certifications are listed and briefly described in Factsheet 10-4 for reference only.
Case D: Beware of Greeks Voting for Gifts
In 2015, Greece became the largest developed nation to default on its sovereign debt. The prelude and consequence of the Greek drama provide great insight to the management of debt portfolios. This case includes excel modeling and very-short-answer write-ups. All content for this case is covered by the conclusion of chapter 5.
In early 2023, a number of Capital Rules banks entered receivership with the FDIC. The first and largest, Silicon Valley Bank, provides the cornerstone case of financial institution failure in an above-target inflation environment. This is an excel case that utilizes SVB's financial statements and the TVM calculator. The majority of content for this case is covered in chapters 5, 9, & 10.
This is a write-up style case that is in reference to the Wharton Budget Model.