文档介绍：Chapter Thirteen Managing Nondeposit Liabilities and Other Sources of Borrowed Funds
Chapter Thirteen
Managing Nondeposit Liabilities and Other Sources of Borrowed Funds
Customer Relationship Doctrine
The First Priority of the Bank is to Make Loans to All Qualified Customers and If Funds are Not Available the Bank Should Seek Out the Lowest Cost Source of Funding to Meet Customers’ Needs1>.
Liability Management
The Bank Buys Funds in Order to Satisfy Loan Requests and Reserve Requirements
It is an Interest-Sensitive Approach to Raising Bank Funds
It is Flexible – The Bank Can Decide Exactly How Much They Need and For How Long
The Control Mechanism to Regulate ing Funds is the Price of Funds
Nondeposit Sources of Funds
Federal Funds Market
Repurchase Agreements
Federal Reserve Bank
Advances from the Federal Home Loan Bank
Negotiable CDs
Eurocurrency Deposit Market
Commercial Paper
Long Term Sources
Federal Funds Market
Deposits Held by . Banks at Federal Reserve Banks, Deposits with Correspondent Banks and Demand Deposit Balances of Security Dealers and Governments Can Be Used For Loans to Institutions
Types of Fed Funds Loan Agreements
Overnight Loans
Term Loans
Continuing Contracts
Repurchase Agreements
Involves the Temporary Sale of High-Quality Assets (usually Government Securities) panied by an Agreement to Buy Back Those Assets On a Speci