Explain about commercial banks in depository institutions, Finance Basics

Explain about commercial banks in depository institutions.

Commercial banks:

Commercial banks accept deposits or liabilities to create loans or assets and to buy government securities. Furthermore, Deposits are extensive in range, including checkable deposits onto which cheques can be write down, savings deposits (i.e., deposits which are payable on demand, but do not permit depositors to write cheques), time deposits (i.e., deposits along with a fixed term to maturity). Loans comprise commercial, consumer and mortgage loans.

Into the USA, commercial banks are the main group of financial intermediary: into 2006 year there were 7,402 along with approximate total assets of $10.1 trillion (as per the FDIC Quarterly Banking Profile). Remember that the industry has experienced a latest consolidation as an effect of mergers and acquisitions (basically consider that into 1984 year there were around 14,416 commercial banks). The presentation of US banks enhanced during most of the 1990s, although this deteriorated a little along with the economic downturn into the early years of the twenty-first century. Into 2006 year the return onto equity (ROE) of the US banking industry averaged 9.9 percent.

Posted Date: 9/3/2013 8:00:12 AM | Location : United States







Related Discussions:- Explain about commercial banks in depository institutions, Assignment Help, Ask Question on Explain about commercial banks in depository institutions, Get Answer, Expert's Help, Explain about commercial banks in depository institutions Discussions

Write discussion on Explain about commercial banks in depository institutions
Your posts are moderated
Related Questions
Legal Rules - Factors Influencing Dividend a) Net purchase rule States that dividend may be paid from company's profit either past or present. b) Capital impairment r

Conduct research and explain the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three years, fiscal or calendar .


There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk. Drawing on literature, critical

given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio

Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co

management and directors

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

Commercial Bank for Short Term Loans Purpose Why Commercial Banks Prefer To Lend Short Term Loans a) Long-term forecasts are not only difficult although also vague as unc

Shareholders' wealth maximization - Objectives of Business Entity Shareholders' wealth maximization refers to maximization of the total present value of each decision made in