Banking Financial Institutional Summaries

What kinds of Financial Institutions are there:

1. Banks
2. Savings and Loans
3. Credit Unions
4. Mutual Saving Banks 

Governance

o   Regulatory agencies

o   Internal policies, standards, processes and procedures

o   Federal Deposit Insurance Corporation was created in 1933

o   Federal Reserve System consists of at least 12 district banks with at least 24 branches

o   Federal Member banks control nearly 80% of all US Bank deposits

o   Basic function of all Financial Institutions

Balance Sheets

Assets

1. Cash
2. Securities
3. Loans
4. Financial premises and equipment

Liabilities and Capital

Deposits

1. Demand
2. Savings
3. Time

Reserve for Loan losses

Capital accounts

1. Capital stock
2. Surplus
3. Undivided profits 

Total capital

Total Liabilities and Capital

Liabilities

Statement of Income

Operating Income

Interest and fees on loans

Interest on securities

1. US Government
2. State and Municipal
3. Other 

Other income

Total Operating Income 

Income before income taxes and securities gains (losses)

Applicable income taxes

Income before securities gains (losses)

Net security gains (losses), less related tax effect

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