《浅谈建设银行资金管理(英文版)》由会员分享，可在线阅读，更多相关《浅谈建设银行资金管理(英文版)（25页珍藏版）》请在金锄头文库上搜索。
1、Bank Funds Management,1,Bank Funds Management,Lecture #2,Bank Funds Management,2,Bank Funds Management,Primary objective of the financial manager of any private sector firm is to create shareholder wealth by increasing the market value of the firm This entails making decisions in four specific areas
2、 of management: Working capital decisions Capital budgeting decisions Financing & capital structure decisions Dividend distribution decisions,Bank Funds Management,3,Types of Financial Decisions,Corporate Financial Mgmt Working capital decisions Capital budgeting decisions Financing & capital struct
3、ure decisions Dividend distribution decisions,Bank Financial Mgmt Liquidity and interest rate decisions Credit and cost management decisions Funding and capital account management decisions Capital account management decisions,Bank Funds Management,4,BankCo Versus MakeCo,Balance Sheet BankCo Cash 4%
4、 Deposits 92% Securities 12% Subordinated debt: debentures 2% Loans 80% Preferred Shareholders equity 2% Equipment, land & premises 4% Common Shareholders equity 4% Total Assets 100% Total Liabilities 100% Balance Sheet MakeCo Cash 0% Accounts Payable 10% Securities 2% Debt: Short term 15% Inventori
5、es 15% Debt: Medium term 15% Accounts Receivable 20% Bonds: Long term 20% Equipment, land & premises 63% Common Shareholders equity 40% Total Assets 100% Total Liabilities 100%,Bank Funds Management,5,Comparing BankCo & MakeCo Balance Sheets,BankCos liquidity is relatively high (16%) compared to Mak
6、eCos (2%). BankCos assets are mostly loans (80%); MakeCos assets are mostly equipment, land and premises (63%). BankCo has total debts equal to 94% of its assets. MakeCos total debt equals 60% of its assets. BankCos common shareholders equity equals 4% of assets; MakeCos equity equals 40% of assets.
7、,Bank Funds Management,6,Income Statements of BankCo & MakeCo (% of Total Assets),BankCo MakeCo Interest Income 10% Sales 100% - Interest Expense ( 7%) - Cost of Goods Sold (60%) Net interest income 3% Gross Margin 40% + Other income 1% Total income 4% - Interest expense ( 5%) - Provision loan losse
8、s ( 1%) 3% 35% - Non-interest expense ( 2%) - Non-interest expense (25%) Net income before tax 1% Net income before tax 10% - Income tax ( .4%) - Income tax ( 4%) Net income .6% Net income 6%,Bank Funds Management,7,Comparing BankCo & MakeCo Income Statements,BankCos income is 4% of total assets; Ma
9、keCos gross margin is 40%. BankCo makes 25% of its income from fees MakeCos ROA is 6%. Conclusion: banking is a high volume, low margin business,Bank Funds Management,8,Dupont Financial Analysis,ROE = ROA x Leverage Where: ROE = Net Income/Common shareholders equity ROA = Net Income/Total Assets Lev
10、erage = Total Assets/Common shareholders equity BankCo MakeCo ROA .6% 6% Leverage 25 times 2.5 times ROE 15% 15%,Bank Funds Management,9,Understanding Dupont,ROE = ( ROA) x ( Leverage),ROA = Operational Risk Total income or non-interest expense fluctuates in response to economic conditions & thereby
11、 impacts net income Leverage = Financial Risk Increasing leverage increases potential return but also increases financial risk ROE = Total Risk Changes in operational & financial risk combine to influence total risk of accounting returns to shareholders.,Bank Funds Management,10,Five Critical Manage
12、ment Variables,Liquidity management Interest rate risk management Capital account management Cost (Productivity) management Credit risk management All impact on Profitability,Bank Funds Management,11,The Banks Financial Objective,Objective: Maximize shareholders wealth How: Maximize the PV of earnin
13、gs distributed to bank shareholders,Bank Funds Management,12,The Banks Financial Objective,To maximize shareholder wealth, the bank must: stabilize & increase after-tax income achieve a competitive rate of return on its assets achieve a competitive rate of return on its equity This implies that the
14、bank must develop & market an attractive portfolio of financial products and services.,Bank Funds Management,13,To Compete Effectively . . .,The bank must develop an attractive portfolio of products & services:,Borrower,Bank,Lender,Attractive portfolio of liabilities,Attractive portfolio of assets,B
15、ank Funds Management,14,The Profit Planning Process,Objectives Screen the Environment Choosing Profit max. Internal Environment Organizational - strengths - values - weaknesses - beliefs Create External Environment Economic choices shareholder - profit opportunities - specific markets value - compet
16、itive threats - specific products & services Specific financial goals,Bank Funds Management,15,External Forces of Change,Technology risk - investments must be made today in a rapidly evolving world Regulatory risk - strategic choices have to be made without full knowledge of future regulatory changes Interest Rate Risk - the market value of the banks assets & liabilities are driven by market interest rates, over which t
