FIN 3636 : Fin 3632 Test 2 Notes
Document Summary
Bank financial statements: report of condition- aka balance sheet, report of income- aka income statement. The balance sheet = assets, liabilities, and net worth. Securities: the liquid portion: often called secondary reserves, include, short term government securities, privately issued money market securities, interest bearing time deposits, commercial paper. Investment securities: these are the income generating portion of securities, taxable securities, us gov"t notes, gov"t agency securities, corporate bonds, tax-exempt securities, municipal bonds ( munies ) Trading account assets: securities purchased for to provide short-term profits from short- Term price movements: when the bank acts as a securities dealer, valued at market. Types of loans: commercial and industrial loans (c&i loans)-2nd biggest, consumer loans (loans to individuals)-3rd biggest, real estate loans-biggest, financial institution loans, foreign loans, agriculture production loans, security loans, leases. Allowance for loan losses (be able to break this down: beginning all. Actual charge-offs (uncollectable loans that are specifically found)
