Define: Return on Assets, Return on Equity, and Net Interest Margin? Look at this data on ROA, ROE, and NIM. Why is the significantly ROE larger?
(Here are some examples. Here is a list of average annual return on assets since 1934. Here is a list of bank failures, by year, from 1934 to 2003.)
Explain: the real bills doctrine, defined shiftability, the anticipated income approach, and the conversion of funds approach. Which is dominant today? What are the shortcomings to the real bills doctrine?
What are the objectives of bank regulation? How are they contradictory?
How many banks fail each year, on average? Why? Should we conclude that the remaining banks run efficiently?
Here is the FDIC's page on Wal-Mart's application to start a bank from earlier this year. It was eventually rejected. Here and here are articles about the effort.
What is the "too big to fail doctrine"? Here and here are article about this doctrine applied to the case of Continental Illinois (as discussed in class and in our text).
Why were banks easy to blame for the Great Depression?
(Here are some examples. Here is a list of average annual return on assets since 1934. Here is a list of bank failures, by year, from 1934 to 2003.)
Explain: the real bills doctrine, defined shiftability, the anticipated income approach, and the conversion of funds approach. Which is dominant today? What are the shortcomings to the real bills doctrine?
What are the objectives of bank regulation? How are they contradictory?
How many banks fail each year, on average? Why? Should we conclude that the remaining banks run efficiently?
Here is the FDIC's page on Wal-Mart's application to start a bank from earlier this year. It was eventually rejected. Here and here are articles about the effort.
What is the "too big to fail doctrine"? Here and here are article about this doctrine applied to the case of Continental Illinois (as discussed in class and in our text).
Why were banks easy to blame for the Great Depression?
posted by Chris at 4:51 PM
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