商银2-financial statements for bank

这是一篇关于商银2-financial statements for bank的思维导图，主要内容有overview、report of condition—balance sheet、direct relationship、report of income—-income statement。

2-financial statements for bank

• overview
  • difference between CB & nonfinancial firm
    • CB: major asset-loan major liability-deposit
    • nonfinancial: major asset: tangible asset (building & machinery)
  • balance sheet
    • stock(存量)
  • income statement
    • flow(流量)
  • submit
    • financial statement must be submitted to regulators & stockholders quarterly
• report of condition——balance sheet
  • asset
    • cash assets
      • 作用：designed to meet the financial firm's need for liquidity
      • 地位：called primary reserves
      • sort
        • vault cash (库存现金)
          • the currency and coin needed to meet customer withdrawal (一时持有，用于临时支付的现金)
        • deposit at federal reserve
          • to meet legal reserve requirement
        • deposit at other financial institution
          • to purchase service from correspondent bank
        • cash item in process of collection (收款过程中的现金项目)
    • investment security
      • 作用：a backup source of liquidity & provide a source of income
      • sort1
        • security(both short/long-term investment security)
          • S: easily sold to obtain cash (T-bill,municipal security,money market instrument)
          • L: municipal bond/government bonds&notes/government agency security/corporate bond&note
        • federal funds sold & reverse repurchase agreement
          • RP: short-term uncollateralized loan made by one bank to another,usually extended overnight,with funds returned the next day.
            • the next day, the purchsing bank returns the fed funds+one day's interest,reflecting the fed fund rate
          • repo: collateralized federal fund transaction
        • other trading account asset
      • sort2
        • held-to-maturity security (income-generating portion)
        • available-for-sale security (the liquid portion)
          • called secondary reserves
        • trading account asset/security
          • principally speculate on interest rate movements and profit on price changes,typically held for brief period. (从事自营而短期持有,并旨在日后出售或计划从买卖的实际或预期价差中获利的金融工具头寸)
    • loan
      • principally to supply income and the major source of credit&liquidity risk
        • commercial & industrial/business loan
          • finance a firm's capital need/equipment purchase/plant expansion
        • real estate/property-based loan
          • 地位：primarily mortgage loan
            • residential mortgage are the largest component of the real estate loan portfolio
          • very long-term loan with an average maturity of approximately 20 years
        • individual/consumer loan
          • personal & auto loan(车贷)
        • other loan:foreign/agricultrual/security loan...
        • lease(租赁)
      • 记账公式: net loan = gross loan - unearned income - ALL
        • contra-asset account (资产对销账户) 基本作用是用于抵消某一账户的余额
        • unearned/discount income (预收收入)
        • allowance for possible loan loss(ALL)
          • 
          • specific reserve: set aside to cover a particular/problem/above-average risk loan
          • general reserve: remaining ALL
        • nonperforming loan: 90 days or more past due or are not accruing interest
        • earning asset:investment security + net loan&lease (generate interest income & some of the noninterest income)
    • other/miscellaneous asset
      • fixed asset/intangible asset(goodwill&mortgage sevicing right/deferred tax/prepaid expense)
  • liability
    • deposit
      • 地位：main source of funding
      • sort
        • demand deposit
          • held by individual/corporation/partnership/government pay no explicit interest
            • corporation is the major holder corporation can only use demand deposit for transaction account purpose
        • NOW account(negotiable order of withdrawal account) (可转让支付命令账户)
          • depositor can maintain a minimum account balance to earn interest
        • MMDA account(money market deposit account)
          • higher rate than NOW,but less liquid than demand&NOW
        • saving deposit account
        • time deposit
          • retail certificate of deposit(CDs) (零售存款证)
            • 就是我们常见的 有到期日有利息的存款
          • wholesale CDs (批发存款证)
            • negotiate instrument(ownership can be transferred in the secondary market)
    • nondeposit borrowing
      • federal funds purchased&repo
        • major source of borrowed fund
          • fed fund rate can be variable——driven by market demand & supply
      • other borrowed fund
        • banker's acceptance/issuing commercial paper/medium-term note/discount window loan
      • subordinated debt (次级债券)
        • attractive,no reserve requirement&deposit insurance premium
      • other liability
        • accrued interest/deferred tax/dividend payable/minority interest
    • related concept
      • transaction account: checkable deposit(demand deposit or NOW account)
      • brokered deposit: wholesale CD obtained through brokerage house
      • eurodollar deposit
      • core deposit: stable over short period,thus provide a long-term funding source to a bank 是最稳定的资产，但可以随时提取
        • cheapest & most frequently used source of funding
        • include demand deposit/NOW account/MMDA/retailing CD
      • purchased fund
        • rate-sensitive funding source
          • immediately withdrawn or replaced as rate on competitive instrument change
        • wholesale CD+nondeposit borrowing
  • equity
    • required to hold a minimum level of equity
    • preferred stock
    • common stock(at par value)
    • surplus & additional paid-in capital (实收资本)
    • retained earning/undivided profit
  • off-balance-sheet activity(OBS)
    • a supplement to income & help bank reduce its exposure to interest-rate and other type of risk
    • sort
      • loan commitment (贷款承诺)
      • letter of credit (信用证)
      • loan sold
      • derivative security
• direct relationship
  • • influence factor
      • the amount and mix of assets and liability held by bank
      • interest rate of each them
  • leverage
    • financial leverage
      • 往往是由于负债融资引起的,一旦财务杠杆变高了，这也就意味着企业利用债务融资的可能性降低了
    • operating leverage
      • 由于固定成本的存在，导致利润变动率大于销售变动率的一种经济现象，它反映了企业经营风险的大小
• report of income——income statement
  • interest income & expense
    • interest from asset & liability
    • net interest income=total interest income - total interest expense
  • provision for loan losses
    • a noncash,tax deductible(免税的) expense
    • 与ALL关系： PLL is the current period's allocation to the ALL ALL(end) = ALL(begin) + PLL - actual loss + recovery on loan previously charged off
      • 记账过程中报表的变化
        • 认为可能会发生坏账→net loan减少，ALL增加/retained earning减少  发现确实坏账收不回来了→write the loan off its book  在这个过程中，total asset&liability是没变的，只是具体分录有变化。可以看出坏账准备账户的意义
  • noninterest income & expense
    • income
      • fee earned from fiduciary(信托的) activity
      • service charge on deposit account
      • trading account gain&fee
      • additional noninterest income fee from investment banking/fee from insurance
      • total operating income/revenue = interest income + noninterest income
    • expense
      • 情况介绍： mainly of personnel expense(人事费) it's a burden(for almost all bank,non-income < non-expense)
      • sort
        • wage,salary,employee benefit
        • premise(房屋费用) & equipment fee utility & depreciation,rental fee on office space
        • other operating expense deposit insurance premium
  • net income(total revenue-total expense)
    • pretax net operating income =total operating revenue - total operating expense =(interest income+noninterest income) - (interest expense+noninterest expense + PLL)
  • others
    • security gain/loss (证券盈余)
      • bank purchase/sell/redeem security during the year, and often results in gains/losses above or below the book value
      • applicable income taxes: all federal,state,local and foreign income taxes due from bank
      • extraordinary item: transaction or event that are both unusual and infrequent