JP Morgan tour

瑞士位于欧洲中部，东邻奥地利，西邻法国，南邻意大利，北与德国接壤，地处北温带，四季分明，气候宜人，不仅经济发达，还是世界上最富裕的国家之一。

瑞士山清水秀，自然风光十分秀美，因此有“欧洲心脏”“世界花园”等美誉。

不久前，我走进这个美丽的国度，在游览了伯尔尼、日内瓦、苏黎世等大城市后，当地一位好友建议我：“瑞士的中心城市你都看了，不如再到一些小镇看一看，那里环境清新、风光旖旎，别有一番韵味！”好友的提议一下勾起了我的兴趣，于是我们决定去离苏黎世不远的一座小镇—因特拉肯。

小镇景色：蓊郁苍翠，风光旖旎第二天一早，我们乘火车从苏黎世出发。

车上好友向我介绍：“因特拉肯坐落在图恩湖和布里恩茨湖之间，又名湖间镇。

因气候温和湿润、四季分明、山清水秀、风光旖旎而备受世人喜爱，是瑞士乃至欧洲最古老的旅游和疗养胜地之一，每年世界各地慕名来此观光、休假的人络绎不绝……”我们说着、聊着，经过大约两个小时，火车抵达了因特拉肯。

走出车站，首先映入眼帘的是一面迎风飘扬的瑞士国旗，那舒展的形态以及在微风吹拂下不断发出的哗啦啦声响，好像在问候每一位远道而来的宾客：“您好！”走进小镇，一股清新的气息扑面而来，举目四望，到处蓊郁苍翠、花红柳绿，仿佛一座大花园。

镇中的主要街道叫何维克街，街道中心有一块宽阔的大草坪，茵茵What A Wonderful World世界真奇妙2023年06月05日·第11期Copyright©博看网. All Rights Reserved.7071绿草，青翠欲滴，仿佛一块铺陈开来的毛绒地毯，草坪中栽种着各色花卉，五颜六色的鲜花斑斓夺目，绽放着笑脸，尽吐芬芳，散发出的阵阵清香，弥漫在空气中，吸一口顿时有沁人心脾之感。

花丛中许多蝴蝶、蜜蜂扑扇着翅膀，围绕花蕊上下翻飞，无忧无虑地嬉戏、玩耍着。

这一静一动，将百花的静态之美和蝴蝶蜜蜂的灵动之美展现得淋漓尽致，吸引着很多过往之人情不自禁地放缓脚步，边观赏美景，边尽情品味花香。

美国东部线路自由行全攻略第1天纽约市（法拉盛自由行）抵达纽约，根据回酒店时间，前往一街之隔的天景豪苑（SKYVIEW），或是法拉盛中心点：在短暂的时间内感受到到极具特色的亚裔文化，畅游集购物、休闲、美食、文化、娱乐、生活一体的亚裔生活中心。

第2天纽约市区游览上到纽约市地标-帝国大厦嘹望观景台，欣赏中央公园和纽约全景。

乘坐观光环岛游轮游览哈德逊河，与自由女神像和布鲁克林桥摄影留念。

登上花费1.2亿美元重新整修开放的国家历史文物-大无畏号航空母舰，并参观协和号超音速客机和各种战机。

漫步世界金融、证券交易中心华尔街，与三一教堂，象征牛市的铜牛雕塑和纽约股票交易所合影留念。

参观大都会博物馆，时代广场，杜莎夫人蜡像馆与总统奥巴马等名人合影。

途经第五大道，洛克菲勒中心，联合国总部，世贸遗址……第3天费城–华盛顿特区参观国家诞生地费城，漫步在独立公园，在想象中感受1776年在此宣读独立宣言时的振奋心情。

与华盛顿雕像，旧国会大厦和独立宫合影留念，参观自由钟或者自由活动。

华盛顿特区，参观林肯纪念堂和倒影湖，越战纪念碑，朝鲜战争纪念碑，在航天航空博物馆了解人类征服太空的伟大历程和对未来的展望。

并与美国总统府-白宫和最高权力机构-国会大厦分别合影留念，乘坐游船沿着波多马克河和太斗湖饱览首都美景。

如遇冬季首都游船关闭，可前往国际间谍博物馆。

该博物馆是美国独一无二也是世界上最大的收集间谍相关装备及物品的博物馆。

这里有詹姆斯.邦德电影中最大的道具陈列和邦德的两辆座驾：捷豹和阿斯顿.马丁。

游览华盛顿期间还会途经杰弗逊总统纪念堂，华盛顿纪念碑，二战纪念碑等。

华盛顿纪念碑华盛顿纪念碑是为纪念美国首任总统乔治·华盛顿而建造的，它位于华盛顿市中心。

在总统官邸白宫的正南方向，绿草成茵，华盛顿纪念碑拔地而起，高耸入云。

它的金字塔式小尖顶，是华盛顿的制高点。

国会山庄在这里可以了解到美国更多的历史文化。

在地理上，国会山庄虽然位于华盛顿偏东的位置，但却常常被看作为华盛顿特区的中心。

美国十大银行
1.金融巨头财富500强公司——美国银行（Bank of America），资产规模为
2.4万亿美元。

2.资产规模为2.3万亿美元的摩根大通（JPMorgan Chase）。

3.资产规模为1.7万亿美元的庞大银行——庞摩士银行（Wells Fargo）。

4.国民级银行——花旗银行（Citigroup），资产规模为1.6万亿美元。

5.洛杉矶的一家跨国金融机构——美国信托银行（US Bancorp），资产规模为5430亿美元。

6.波士顿总部的银行——总部位于波士顿的摩根士丹利（State Street Corporation），资产规模为3930亿美元。

7.位于纽约市的第五大银行——第五三银行（Fifth Third Bank），资产规模为2020亿美元。

8.坐落于密歇根州底特律市的同业公会银行——兴业银行（Huntington Bank），资产规模为1230亿美元。

9.总部设在新泽西州的金融服务公司——山姆信托公司（PNC Financial Services Group），资产规模为1390
亿美元。

10.资产规模为1200亿美元的苏格兰皇家银行集团
（Royal Bank of Scotland Group，RBS）。

需要注意的是，以上排名是根据资产规模来排名的，不一定代表了这些银行在业务规模、盈利能力等方面的综合实力。

ASKING RENTAL GUIDEBUILDING NAMEWoodlands Spectrum I Woodlands Spectrum IIBUILDING NAMEThe Kendall Solaris Nucleos Aperia EastViva Business Park Akzonobel House Honeywell The Signature North / Northeast –West Icon@IBPNordic European Centre Acer BuildingADDRESS2 Woodlands Sector 1209/211 Woodlands Avenue 9ADDRESS50 Science Park Road 1 Fusionopolis Walk 21 Biopolis Road 8, 10, 12 Kallang Avenue750/A-E Chai Chee Road 3 Changi Business Park Vista 17 Changi Business Park Central 151 Changi Business Park Central 26 Serangoon North Avenue 53A International Business Park 3 International Business Park 29 International Business ParkASKING RENTS (S$ PSF PER MONTH)$1.50$1.60 - $1.70ASKING RENTS (S$ PSF PER MONTH)$4.50$6.50$4.95 - $6.50$5.90 - $6.91$3.00 - $5.50$4.50$4.50$3.70 - $4.50$2.50$4.10$4.40$4.2020 the SME magazineNotes: T erms and conditions apply . All rents stated are in per sq ft/month. All rents are as of January 2018. Source: Colliers International SingaporeNotes: All rents stated are in per sq ft/month. All rents are as of January 2018. Source: Colliers International Singapore.BUILDING NAMERaffles Place / New Downtown Republic Plaza IOne Raffles Place T owers 1 & 2PWC Building Prudential T owerT anjong Pagar / Shenton Way 80 Robinson Robinson Point Mapletree AnsonMarina / City Hall / Beach Road Suntec T owers The Concourse The Gateway Orchard RoadVisioncrest Commercial 51 Cuppage Road (Formerly known as Starhub Centre) UE Square City FringeHarbourfront T owers 1 & 2Novena Square T owers A & B PSA BuildingADDRESS9 Raffles Place 1 Raffles Place 8 Cross Street 30 Cecil Street80 Robinson Road 39 Robinson Road 60 Anson Road5/6/7/8/9 T emasek Boulevard 300 Beach Road 150/152 Beach Road103 Penang Road 51 Cuppage Road83 Clemenceau Avenue1/3 Harbourfront Place 238A/B Thomson Road 460 Alexandra RoadASKING RENTS (S$ PSF PER MONTH)$9.00 - $11.00$10.00 - $11.50$9.50$8.00 - $8.50$7.50$8.00 - $8.30$8.70$9.50 - $10.00$7.80$7.50 - $7.80$9.00$7.50$7.50 - $8.00$6.90 - $7.50$8.00$6.30 - $7.60Notes: All rents stated are in per sq ft/month. All rents are as of January 2018. Source: Colliers International Singapore.BUILDING NAME––WestcomADDRESS20 Gul Way 76 Pioneer Road 1 T uas South Avenue 6ASKING RENTS (S$ PSF PER MONTH)$1.20$1.30 - $1.50$1.30Notes: All rents stated are in per sq ft/month. All rents are as of January 2018. Source: Colliers International Singapore.TRANSACTION DA T APROJECT NAME ADDRESS TENURE AREA (SQ FT) TRANSACTED UNIT PRICE CONTRACT DA TEPRICE (S$) (S$ PSF)CentralGOLDEN MILE COMPLEX5001 Beach Road #03-49 99 Yrs From 04/08/1969 194 $300,000 $1,548 19-Dec-17 SBF CENTER160 Robinson Road #21-02 99 Yrs From 21/12/2011 753 $2,183,700 $2,898 20-Dec-17 GOLDEN MILE COMPLEX5001 Beach Road #06-33 99 Yrs From 04/08/1969 205 $255,000 $1,247 21-Dec-17 BALESTIER PLAZA400 Balestier Road #02-30 Freehold 301 $668,000 $2,216 21-Dec-17 SBF CENTER160 Robinson Road #23-03 99 Yrs From 21/12/2011 732 $2,100,000 $2,869 22-Dec-17 ICON@CHANGI228 Changi Road #04-09 Freehold 409 $595,000 $1,455 22-Dec-17 NorthWOODS SQUARE12 Woodlands Square #05-63 99 Yrs From 15/07/2014 560 $988,000 $1,765 21-Dec-17 WestVISION EXCHANGE 2 Venture Drive #14-28 99 Yrs From 10/06/2013 517 $1,284,000 $2,485 14-Dec-17 Note: Based on available sales caveats lodged from December 19, 2017. Source: URA REALIS/Colliers International Singapore Research (as at 29 January 2018).PROJECT NAME ADDRESS TENURE AREA (SQ FT) TRANSACTED UNIT PRICE CONTRACT DA TEPRICE (S$) (S$ PSF)CentralOXLEY BIZHUB 262 Ubi Road 1 #04-13 60 Yrs From 10/06/2011 990 $558,000 $563 15-Dec-17P A Y A UBI INDUSTRIAL P ARK51 Ubi Avenue 1 #03-28 60 Yrs From 10/03/1997 3,584 $950,000 $265 15-Dec-17MA YFAIR INDUSTRIAL BUILDING51 Jalan Pemimpin #04-04 999 Yrs From 06/07/1885 2,034 $1,030,000 $506 18-Dec-17CT HUB 2114 Lavender Street #03-50 99 Yrs From 14/01/1976 1,884 $1,230,000 $653 18-Dec-17 BIZTECH CENTRE627A Aljunied Road #06-11 Freehold 958 $870,000 $908 19-Dec-17 UB. ONE81 Ubi Avenue 4 #06-02 60 Yrs From 31/12/2008 1,044 $600,000 $575 20-Dec-17 OXLEY BIZHUB 262 Ubi Road 1 #03-02 60 Yrs From 10/06/2011 1,905 $860,000 $451 20-Dec-17 ALJUNIED INDUSTRIAL COMPLEX623 Aljunied Road #03-05 Freehold 1,066 $712,000 $668 20-Dec-17 ZERVEX8 Ubi Road 2 #04-13 60 Yrs From 30/06/2008 1,055 $500,000 $474 20-Dec-17 UBI TECHP ARK10 Ubi Crescent #03-17 60 Yrs From 05/07/1997 1,270 $533,400 $420 20-Dec-17 TONG LEE BUILDING35 Kallang Pudding Road #05-08 Freehold 904 $500,000 $553 21-Dec-17 TONG LEE BUILDING35 Kallang Pudding Road #05-07 Freehold 1,141 $600,000 $526 26-Dec-17 UBI TECHP ARK10 Ubi Crescent #06-85 60 Yrs From 05/07/1997 1,109 $488,000 $440 28-Dec-17 MACTECH BUILDING 2 Kallang Pudding Road #08-14 Freehold 1,259 $880,000 $699 29-Dec-17North EastNORTHST AR @ AMK7030 Ang Mo Kio Avenue 5 #02-27 60 Yrs From 01/01/2007 1,141 $570,000 $500 20-Dec-17 LINK@AMK 3 Ang Mo Kio Street 62 #05-34 60 Yrs From 28/06/2011 2,153 $950,000 $441 27-Dec-17 NorthNORTH POINT BIZHUB 2 Yishun Industrial Street 1 #04-11 57 Yrs From 18/09/2012 2,648 $628,888 $238 15-Dec-17 WOODLANDS 1111 Woodlands Close #04-34 60 Yrs From 05/07/2010 1,927 $740,000 $384 18-Dec-17 NORTH SPRING BIZHUB 5 Yishun Industrial Street 1 #02-10 60 Yrs From 01/02/2011 1,539 $660,000 $429 21-Dec-17 WIN 5 15 Yishun Industrial Street 1 #06-12 30 Yrs From 05/12/2012 1,744 $410,000 $235 21-Dec-17 NORTH LINK BUILDING10 Admiralty Street #03-87 60 Yrs From 09/10/1999 5,188 $800,000 $154 27-Dec-17 NORTH LINK BUILDING10 Admiralty Street #02-09 60 Yrs From 09/10/1999 5,188 $900,000 $173 28-Dec-17 NORTH LINK BUILDING10 Admiralty Street #02-77 60 Yrs From 09/10/1999 5,188 $910,000 $175 29-Dec-17 WestUNITY CENTRE51 Bukit Batok Crescent #07-12 60 Yrs From 13/03/1997 1,550 $555,000 $358 20-Dec-17 PIONEER CENTRE 1 Soon Lee Street #03-22 30 Yrs From 10/03/2010 1,485 $326,800 $220 20-Dec-17 WCEGA TOWER21 Bukit Batok Crescent #23-74 60 Yrs From 13/03/1997 958 $450,000 $470 21-Dec-17Note: Based on available sales caveats lodged from December 15, 2017. Source: URA REALIS/Colliers International Singapore Research (as at 29 January 2018).Strata warehouse spacePROJECT NAME ADDRESS TENURE AREA (SQ FT) TRANSACTED UNIT PRICE CONTRACT DA TEPRICE (S$) (S$ PSF)CentralMACTECH BUILDING 2 Kallang Pudding Road #02-05 Freehold 2,013 $1,388,000 $690 01-Dec-17 EastGORDON WAREHOUSE BUILDING 9 Kaki Bukit Road 2 #02-16 60 Yrs From 25/07/1981 1,744 $420,000 $241 10-Dec-17 Note: Based on available sales caveats lodged in December 2017. Source: URA REALIS/Colliers International Singapore Research (as at 29 January 2018).the SME magazine 21。

CHAPTER 15MANAGING NONDEPOSIT LIABILITIES AND OTHER SOURCES OF BANK FUNDS Goal of This Chapter: To discover the major nondeposit sources of borrowed funds banks use today and to learn the factors a banker must consider in choosing among various deposit and nondeposit funds sources.Key Terms Presented in This ChapterCustomer Relationship Doctrine Commercial Paper MarketLiability Management Repurchase Agreement (RP)Federal Funds Market Funds GapDiscount Window Interest-Rate RiskNegotiable CD Credit Availability RiskEurocurrency DepositChapter OutlineI. Introduction: The Consequences of Deposit Shortfalls and the Need to Use NondepositSources of FundsII. Liability ManagementA. Customer Relationship DoctrineB. Purpose of Liability ManagementIll. Alternative Nondeposit Sources of Bank FundsA. Federal Funds MarketB. Borrowing from the Federal Reserve Bank in the DistrictC. The Development and Sale of Large Negotiable CDsD. Eurocurrency Deposit MarketE. The Commercial Paper MarketF. Repurchase Agreements as a Source of Bank FundsG. Long-Term Nondeposit Funds SourcesIV. Choosing Among Alternative Nondeposit SourcesA. Measuring a Bank's Total Need for Nondeposit Funds - The Funds GapB. Nondeposit Funding Sources: Factors to Consider1. Relative Costs2. The Risk Factor3. Length of Time for Which Funds Are Needed4. The Size of the Borrowing Bank and Its Funding Need5. RegulationsV. Summary of the ChapterConcept Checks15-1. What is liability management?181182Liability management involves the conscious control of the funding sources of a bank,using the interest rates (yields) offered on deposits and other borrowings to regulate the inflow of funds to match the bank's immediate funding needs.15-2. What advantages and risks does the pursuit of liability management bring to a bank?Improved control over funding sources enables a bank to plan its growth more completely, but liability management opens up certain risks, particularly of the interest-rate risk and solvency (default or failure) risk variety, because it tends to be more sensitive to changes in market interest rates.15-3. What is the customer relationship doctrine and what are its implications for bank fund-raising?The customer relationship doctrine places lending to customers at the top of a bank's priority list. It argues that a bank should make all good loans - that is, all loans that meet the bank's quality and profitability standards - and then find the funds needed to fund those loans the bank decides to make. Funds uses thus become a higher immediate priority item than funds sources.15-4. For what kinds of bank funding situations are federal funds best suited?Federal funds are best suited for banks short of reserves to meet their legal reserve requirements or to satisfy customer loan demand. It satisfies this demand by tapping immediately usable funds.15-5. Chequers State Bank loans $50 million from its reserve account at the Federal Reserve Bank of Philadelphia to First National Bank of Smithville, located in the New York Federal Reserve Bank's district, for 24 hours with the funds scheduled to be returned the next day. The proper accounting entries in this case would be:Step 1 - Lending the $50 millionChequers State BankStep 2 - Using the borrowed First National Bank of Smithvillefunds can also be shown, though it is not mentioned in the problem. You could show First National Bank of Smithville making a loan for $50 million under Assets, giving up $50 million from its reserve account.Step 3 - Repaying the Loan of Federal FundsChequers State BankFirst National Bank of Smithville15-6. Hillside Security Bank has an excess balance of $35 million in a deposit at its principal correspondent, Sterling City Bank, and instructs the latter institution to loan the funds today to another bank, returning them to its correspondent deposit the next business day. Sterling loans the $35 million to Imperial Security National Bank for 24 hours. The proper accounting entries would be:Step 1 - Lending Federal Funds to a CorrespondentHillside Security BankSterling City BankAssets LiabilitiesFederal fundspurchased +$35 mill.RespondentBank's deposit -$35 mill.183Step 2 - The Correspondent Bank Loans Funds to Another BankSterling City BankImperial Security National BankStep 3 - Repaying the Loan to the Respondent BankHillside Security BankSterling City Bank15-7. What are the advantages of borrowing from the Federal Reserve banks?Borrowing from the Federal Reserve banks is usually the lowest interest-cost source of funds. However, there are strict rules for borrowing by banks and borrowing for rate arbitrage is prohibited, although there is some evidence it does occur.15-8. How is a discount window loan from the Federal Reserve secured?A discount window loan must be secured by collateral acceptable to a Federal Reserve bank (usually U.S. government securities). Most banks keep government securities in the vaults of the Federal Reserve for this purpose. The Federal Reserve bank will also accept some government agency securities and high-grade commercial paper as collateral.18415-9. Posner State Bank borrows $10 million in adjustment credit from the Federal Reserve Bank of Cleveland. Can you show the correct entries for the granting and repayment of this loan? The proper entries are:Step 1 - Securing a Loan from the Fed.Posner State BankFederal Reserve Bank of ClevelandStep 2 - Repaying the Loan to the Fed.Posner State BankFederal Reserve Bank of Cleveland15-10. Why were negotiable CDs developed?Negotiable CDs were developed by banks to attract large corporate deposits and savings from wealthy individuals.15-11. What are the advantages and disadvantages of CDs as a bank funding source? Negotiable CDs offer a way to attract large amounts of funds quickly and for a known time period. However, these funds are highly interest sensitive and often are withdrawn as soon as the maturity date arrives unless a banker aggressively bids in terms of yield to keep the CD.18515-12. Suppose a bank customer purchases a $1 million, 90-day CD, carrying a promised 6 percent annual yield. How much in interest income will the customer earn when this 90-day instrument matures? What total volume of funds will be available to the depositor at the end of 90 days?Interest Income = Principal * Days to Maturity * Annual RateTo Customer 360 days Of Interestx 0.06= $1,000,000 x 1360= $15,000Total amount = Principal + Interestdue Customer = $1,000,000 + $15,000= $1,015,00015-13. Where do Eurodollars come from?Eurodollars arise from dollar deposits made in banks and at branch offices outside U.S. territory. Many Eurodollar deposits arise from U.S. balance-of-payments deficits that give foreigners claims on U.S. assets and from the need to pay in dollars for some international commodities (such as oil) that are denominated principally in U.S. dollars.15-14. How does a bank gain access to funds from the Eurocurrency markets?Access to these funds is obtained by contacting correspondent banks by telephone, wire, or cable.15-15. Suppose that JP Morgan-Chase elects to borrow $250 million from one of its London branches, then loans the borrowed funds for a week to a security dealer, and then returns the borrowed funds to its branch office in London. Can you trace through what accounting entries must be made? What if JP Morgan-Chase had decided instead to borrow the $250 million from a foreign bank not related to JP Morgan-Chase? How do the accounting entries differ in these two cases?If JP Morgan-Chase borrows from its own branch office the entries would appear as possible:Home Office of JP Morgan-Chase BankForeign Branch Office of JP Morgan-ChaseAssets Liabilities186When JP Morgan-Chase's home office makes a loan to a security dealer the entries are:Home Office of JP Morgan-Chase BankWhen the Loan is repaid and funds are returned to JP Morgan-Chase’s foreign branch we have:Home Office of JP Morgan-Chase BankForeign Branch Office of JP Morgan-ChaseIf, instead, JP Morgan-Chase borrows from another bank abroad not affiliated with JP Morgan-Chase, the entries would appear as follows:JP Morgan-ChaseU.S. Bank Serving as Correspondent to Foreign BankForeign Bank Lending to JP Morgan-Chase Bank187Deposit at U.S.CorrespondentBank +$250 mill.Eurodollar loan toJP-Morgan ChaseBank -$250 mill.When JP Morgan-Chase repays its loans we have:JP Morgan-Chase BankU.S. Bank Serving as Correspondent to Foreign BankForeign Bank Lending Eurodollars15-16. What is commercial paper?Commercial paper is a high-quality, short-term debt obligation issued by a large corporation with an excellent credit rating to provide for short-term cash needs.15-17. Suppose that the finance company affiliate of Citicorp issues $325 million in 9 day commercial paper to interested investors and uses the proceeds to purchase loans from Citibank. What accounting entries should be made on the balance sheets of Citibank and Citicorp's finance company affiliates?The appropriate entries for the above transaction are:Step 1 - Commercial Paper is Sold by the Affiliated Finance Company188CitibankFinance AffiliateStep 2 - The Affiliated Finance Company Purchases Loans from CitibankCitibankFinance Affiliate15-18. How do RPs arise?RPs are agreements to sell securities temporarily by a borrower of funds to a lender of funds with the borrower agreeing to buy back the securities at a guaranteed price at a set time in the future.15-19. What are the principal advantages to the borrower of funds under an RP agreement?RPs are a low-cost and low-risk way of borrowing loanable funds for short periods of time (usually 3 or 4 days). They are low risk because they are essentially a collateralized loan. The securities that are sold as part of the agreement act as collateral.15-20. What long-term nondeposit funds sources do banks draw upon today? How do these interest costs differ from most money market borrowings?Long-term nondeposit funds include mortgages, capital notes, and debentures. Generally, the interest costs on these funds sources are substantially higher than money market loans but are more stable usually.15-21. What is the funds gap for a bank?189The funds gap is the difference between current and projected credit and deposit flows that creates a need for raising additional bank reserves or for profitably investing any excess reserves that may arise.15-22. Suppose that Bankers Trust Company of New York estimates next week's new loan demand at $325 million and customer drawings on confirmed credit lines of $510 million, while new deposits next week are projected to equal $680 million. If the bank also plans to acquire $420 million in corporate and government bonds next week, what is the bank's projected funds gap?The expected funds gap (with all figures in millions of dollars) would be:Projected = $325 + $510 + $420 - $680 = $575.Funds Gap15-23. What factors must a bank manager weigh in choosing among the various nondeposit sources of bank funding available today?A bank manager must weigh factors such as relative costs, risk, length of time funds are needed, size of bank and its funding need, and regulations in choosing what nondeposit funds sources to use. Other factors held constant, bank management will seek out the lowest cost nondeposit funding sources available subject to the risk of availability problems and the danger of interest-rate volatility. When funds are needed for longer periods, negotiable CDs and Eurodollars are usually the preferred sources whereas very short-term cash needs usually will be met by Federal funds and RPs or by borrowing from the Federal Reserve banks. However, regulations impose reserve requirements on some funding sources (e.g., CDs) which increases their cost and these rules limit access to some sources (e.g., borrowings from the Fed's Discount Window).Problems15-1. Robertson State Bank of Clayton decides to loan $70 million of its reserves at the Fed to Tenison National Security Bank for 24 hours. In turn, Tenison National plans to loan the funds to a security dealer for 24 hours and then return the funds to Robertson State Bank. The correct accounting entries are:Step 1 - Lending the $70 millionRobertson State Bank190Tenison National BankStep 2 - Loaning the Borrowed FundsTenison National BankStep 3 - Repaying the Loan of Federal FundsRobertson State BankTenison National Bank15-2. Masoner National Bank holds most of its correspondent deposits with Flagg Metrocenter Bank which automatically reinvests any surpluses which Masoner may have. This morning Masoner has a correspondent deposit surplus of $11 million expected to last for 48 hours. Flagg will loan this surplus for two business days to Secoro Central City Bank and then the funds will be returned to Masoner's correspondent deposit at Flagg Metrocenter Bank.Step 1 - Lending Federal Funds to a CorrespondentMasoner National Bank191loaned +11 mill.Flagg Metrocenter BankStep 2 - The Correspondent Bank Loans Funds to Another BankFlagg Metrocenter BankSecoro Central City BankStep 3 - Repaying the Loan to the Respondent BankMasoner National BankFlagg Metrocenter Bank19215-3. Relgade National Bank secures adjustment credit from the Federal Reserve Bank of San Francisco in the amount of $32 million for a term of 7 days. Please show the proper entries for granting this loan and then paying off the loan.The correct entries are:Step 1 - Receiving a Loan from the FedRelgade National BankFederal Reserve Bank of San FranciscoStep 2 - Repaying the Fed's loanRelgade National BankFederal Reserve Bank of San Francisco15-4. Itec Corporation purchases a 45-day negotiable CD with a $5 million denomination from Payson Guaranty Bank and Trust, bearing a 6.75 percent annual yield. How much in interest will the bank have to pay when this CD matures? What amount in total will the bank have to pay back to Itec at the end of 45 days?Interest Owed 45To Itec Corp. = $5,000,000 * 360 * 0.0675By Bank= $42,187.50193Total amountowed Itec = $5,000,000 + $42,187.50in 45 days in principle in interest= $5,042,187.5015-5. International Commerce Bank borrows $125 million overnight through a repurchase agreement (RP) collateralized by Treasury bills. The current RP rate is 4.5 percent. How much in interest cost will the bank have to pay?Interest cost= $15,624.50of RP = $125,000,000 x 0.045 x 136015-6. National Commerce Bank of New York expects new deposit inflows next month of $330 million and deposit withdrawals of $275 million. The bank's economics department has projected the new loan demand will reach $621 million and customers with approved credit lines will need $266 million in cash. The bank will sell $480 million in securities, but plans to add $155 million in new securities to its portfolio. What is the bank's projected funds gap?The estimated funds gap (with all figures in millions of dollars) is:Projectedfunds gap = $621 + $266 + [ $155 - $480 ] - [ $300 - $275 ]= $537 million15-7. First National borrowed $150 million in Federal funds from JP Morgan Chase Bank in New York City for 24 hours. After the loan was repaid JP Morgan-Chase loaned $100 million in federal funds to Texas Commerce Bank of Houston.(a) Illustrate these transactions using T-account entries.194(b) The interest income generated for JP Morgan-Chase from the above transactions was:1. Manufacturers' Loan: 0.0785 X $150 Million X 1/360 = $32,7082. Texas Commerce Loan: 0.0792 X $100 Million X 2/360 = $44,00015-8. BancOne of Ohio issues a 3-month (90-day) negotiable CD for $14 million to Travelers Insurance, bearing an annual 360-day yield of 8.47 percent. The value of the CD (including interest income) on its maturity date is:= Principal + (Principal * Days to Maturity / 360 * Annual Interest Rate)= $14 million + ($14 million * 90 / 360 * 0.0847) = $14.29645 millionThe amount of interest income Travelers will earn is:$14 million *90 / 360 * 0.0847 = $296,450.On the basis of a 365-day year Travelers' will earn365/360 * 0.0847 = 0.0859 or 8.59%.15-9. As a result of heavy loan demand experienced by banks within its holding company,195Interstate National Bank plans to raise $850 million in short-term funds this week, of which about $835 million will be used to meet these new loan requests. Current annual interest rates on alternative sources of funds are:Market Interest Rates Noninterest Cost RatesFederal Funds 8.73% 0.25%Negotiable CDs 8.69 0.25Eurodollars 9.11 0.35Commercial paper 8.65 0.50Fed. Discount Rate 7.25 0.25Calculate the effective cost rates on the above sources for Interstate and make a management decision on what sources to use.Effective Federal Funds Cost Rate =Million$835Million $850x0.0025Million$850x0.0873+=million835$million$2.125million $74.205+= 9.14%Effective CD Cost Rate =million$835million $850*0.0025million$850*0.0869+=million$835million$2.125million $73.865+= 9.10%Effective Eurodollar Cost Rate =million$835million $850*0.0035million$850*0.0911+=million$830million$2.975million77.435$+= 9.63%Effective Commercial Paper Cost Rate =million835$million $850*0.0050million$850*0.0865+196=million$835million$4.25million $73.525+= 9.31%Effective Cost of Borrowing from the Fed =million835$million $850*0.0025million$850*0.0725+=million835$million$2.125million$61.625+= 7.63%The cheapest source of all would be borrowing from the Federal Reserve bank. However, the bank has borrowed from the Fed in each of the past two weeks. Thus, it has probably come close to "wearing out its welcome" at the Reserve bank and, at least for the next week, should probably plan on borrowing from the next cheapest source - in this case, the Federal funds market.15-10. Hamilton Security Bank wants to raise $80 million in money market funds to cover a loan request from one of its largest corporate customers, who needs a 6-week loan. However, current forecasts call for a rise in money market interest rates over the next six weeks. Current money market rates are given below:Source Current RateFederal Funds 8.72%Discount Window at the Federal Reserve 7.00CDs (prime rated): One Month 8.45Three Months 8.49Six Months 8.58Eurodollar Deposits(Three Months) 8.58Commercial Paper: One Month 8.55Three Months 8.42What would you recommend to the bank's funds management department regarding how and where to raise the funds needed?Federal funds could be used to fund this loan, but not only do they happen to be the most expensive source in terms of interest cost right now, but also the Fed funds rate is very sensitive to market pressures and, therefore, will rise along with other market interest rates if the bank's forecast turns out to be correct. The Discount Window at the Federal Reserve looks very attractive, but the Fed prohibits borrowing to relend. Either 3-month CDs or 3-month commercial paper appear to represent good alternatives because the bank, presumably, can lock in the interest cost to fund this loan for the entire life of the loan. Assuming that the money market shares the expectations of the bank that interest rates will rise over the next six weeks, the bank will very likely have to pay a premium over the current rates on either the CDs or commercial paper. However, locking in these rates would still represent the better alternative.197Alternative Scenario:Given: Hamilton's economists are wrong and money market rates decline significantly over the next six weeks. How might your recommendations to the bank's funds management department change on how and where to raise the funds needed?Significantly declining interest rates would make shorter-term sources much more attractive to the bank. Federal funds, for example, although currently the most expensive source, may well be a good alternative, since the federal funds rate is very sensitive to interest rate changes. One-month CDs would also be a good alternative, as would one-month commercial paper. With the shorter maturities, the bank could readjust its costs downward as the interest rates continue to fall, maintaining the spread between the rate the bank is charging the borrower, which will be declining as rates fall, and the rate it is paying for its funds.Web Site Problems1. Which banks in the U.S. banking system seem to rely most heavily on deposits as a source of funding and which on nondeposit borrowings and liability management? To find out, select the name of a small local bank (or banks) in your area and look it up in the appropriate FDIC web site. Enter the bank’s name, city and state and determine its ratio of total deposits to total assets in the latest report available. Now compare this ratio to the same deposit to asset ratio for Bank of America and JP Morgan-Chase Bank. What did you find? Can you explain the reasons behind the different ratio values you observed?After examining the UBPR for the First National Bank of Edmond as well as Bank of America and JP Morgan-Chase (of New York) the following table can be formed.As can be seen, the First National Bank of Edmond has a much higher depositor base. Both of the other banks are very large banks and large banks tend to rely less on core deposits. However there are differences even between these large banks. JP Morgan-Chase is in New York City and has even less of a depositor bases that Bank of America. It must rely more heavily on liability management than Bank of America.198。