商业银行管理 ROSE 7e 课后答案 (1).pdf

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1、CHAPTER 4CHAPTER 4CREATING AND MANAGING SERVICE OUTLETS:CREATING AND MANAGING SERVICE OUTLETS:NEW CHARTERS,BRANCHES,AND ELECTRONIC FACILITIESNEW CHARTERS,BRANCHES,AND ELECTRONIC FACILITIESGoal of This Chapter:The purpose of this chapter is to learn how new banks are chartered by stateand federal aut

2、horities in the United States,to determine what makes a good site for a new branchoffice,to recognize how the role of branch offices is changing,and to explore the advantages anddisadvantages of automated banking facilities.Key Topics in This ChapterChartering New Financial Service InstitutionsPerfo

3、rmance of New BanksEstablishing Full Service BranchesIn-Store BranchingEstablishing Limited Service FacilitiesATMs and Telephone CentersThe Internet and Online BankingChapter OutlineI.IntroductionA.The Importance of Convenience and Timely Access to CustomersB.Service Options Available Today1.Charter

4、ing New(De Novo)Financial Institutions2.Establishing New Full-Service Branches3.Setting Up Limited-Service FacilitiesII.Chartering a New Bank or Other Financial Service InstitutionsIII.The Bank Chartering Process in the United StatesA.The Chartering Authorities in the U.S.B.Benefits of Applying for

5、a National CharterC.Benefits of Applying for a State CharterIV.Questions Regulators Usually Ask the Organizers of a New BankV.Factors Weighing on the Decision to Seek a New Bank CharterA.External Factors1.Level of Economic Activity2.Growth of Local Economic Activity3.The Need for a New Bank4.Strengt

6、h and Character of Local Competition in Supplying FinancialServicesInternal Factors1.Qualifications and Contacts of the Organizers2.Management Quality3.Pledging of Capital and Funds to Cover the Cost of Filing a CharterApplication and Getting UnderwayVI.Volume and Characteristics of New Bank Charter

7、sA.Numbers of New ChartersB.Characteristics of New Charter MarketsVII.How Well Do New Banks PerformA.New Bank Financial PerformanceB.Pro-Competitive Effects on Service Offerings and Service PricingVIII.Establishing Full-Service Branch Offices:Choosing Locations and Designing NewBranchesA.Advantages

8、of Full-Service BranchesB.Trends in the Design of New BranchesC.Desirable Sites for New BranchesD.Expected Rate of ReturnE.Geographic DiversificationF.Branch RegulationG.The Changing Role of BranchesH.In-Store BranchingIX.Establishing and Monitoring Automated Limited-Service FacilitiesX.Point-of-Sal

9、e TerminalsXI.Automated Tellers(ATMs)A.History of ATMsB.ATM ServicesC.Fee Structures for ATM UsageD.Customer Service Limitations of ATMsE.Example of the ATM Capital-Budgeting DecisionXII.Home and Office Online BankingA.Telephone Banking and Call CentersB.Internet Banking1.Services Provided Through t

10、he Internet2.Challenges in Providing Internet Services3.The Net and Customer Privacy and SecurityXIII.Financial Service Facilities of the FutureXIV.Summary of the ChapterConcept Checks4-1.Why is the physical presence of a bank still important to many bank customers despiterecent advances in long-dis

11、tance communications technologyB.Many customers still prefer the personal attention and personal service that contact with bankemployees provides.Moreover,for those services where problems can arise that require detailedinformation and explanation-for example,when a checking account is overdrawn and

12、 checksbegin to bounce-the customer needs quick access and,often,the personal attention to his or herproblem on the part of one or more employees.4-2.Why is the creation(chartering)of new banks closely regulated What about nonblankfinancial firmsThe creation of new banks is regulated to insure the s

13、afety and soundness of existing banks and toavoid excessive numbers of bank failures.The same arguments are usually made for non-bankfinancial firms.Financial-Service firms hold the publics savings,are the heart of the paymentsystem and create money.The failure of these firms could disrupt the econo

14、my and too manycould mean in excessive growth in the money supply and inflation.4-3.What do you see as the principal benefits and costs of government regulation of the numberof financial service charters issuedWhile control over the entry of new banks may reduce the number of failures,it also limits

15、competition,so that the public may receive a smaller volume or lower quality of services atexcessive prices.4-4.Who charters new banks in the United States New thrift institutionsNew banks are chartered by the banking commissions of the individual states or,at the federallevel,by the Comptroller of

16、the Currency.Thrift institutions are chartered by the states or at thefederal level by the Office of Thrift Supervision.4-5.What key role does the FDIC play in the chartering processThe FDIC exercises some control over state bank charter activity as well as federal chartersbecause most states insist

17、 that their new banks qualify for federal deposit insurance before they canopen for business.4-6.What are the advantages of having a national bank charter A state bank charterThe benefits of a national charter are:a.)It brings prestige due to stricter regulations and may help attract more customersb

18、.)In times of trouble the technical assistance given may be better ensuring a betterchance of long run survivalThe benefits of a state charter are:a.)It may be easier and less costly to get a state charterb.)The bank does not have to join the Federal Reserve and therefore avoids buying andholding lo

19、w yield stock of the Federal Reservec.)Many states let a bank lend more to one borrowerd.)State chartered banks may be able to make types of loans that a nationally charteredbank cannot4-7.What kinds of information must the organizers of new national banks provide theComptroller of the Currency in o

20、rder to get a charter Why might this required information beimportantThe Comptroller of the Currency asks for information on the number of competing banks andbank-like institutions in the service area of the proposed bank.More competitive market situationslimit the profit potential and perhaps the g

21、rowth potential of a new bank.Also requested isinformation about shopping centers,retail and wholesale business activity,recent populationgrowth,traffic counts,and personal income levels-all viewed as indicators of potential demandfor banking services in the service area of the proposed new bank.App

22、licants must also providebackground information on the organizers and proposed management of a new bank so theComptroller can decide if these people are qualified,law-abiding,and trustworthy to manage thepublics funds as well as their own.4-8.Why do you think the organizers of a new financial firm a

23、re usually expected to puttogether and submit to the chartering authority a detailed business plan,including marketing,management,and financial componentsThis demonstrates to regulators that the organizers of the bank have the expertise,experience andskills necessary to be successful in managing the

24、 new bank.If the organizers of a bank do notknow where they are going,they are unlikely to be successful.In addition,it demonstrateswhether the organizers of the new bank have a realistic picture of the community they are planningon serving and whether the organizers have a realistic view of the pro

25、fit potential in the new bank.4-9.What are the key factors the organizers of a new financial firm should consider beforedeciding to seek a charterWhile a variety of factors are examined by different business people interested in establishing anew bank,most look at some or all of the following factor

26、s.1.External Factorsa.The level of local economic activity.b.Growth of local economic activity.c.The need for a new bank.d.The strength and character of local competition in supplying financialservices.2.Internal Factorsa.Qualifications and contacts of the new banks organizers.b.Management quality.c

27、.Pledging of capital and funds to cover the cost of filing a charter applicationand begin operations.4-10.Where are most new banks chartered in the United StatesNew charters tend to be concentrated in large urban areas where expected rates of return on theorganizers investments are likely to be the

28、highest.As the population increases relative to thenumber of financial firms,the number of new charters increases.The success of local banksalready in the area suggests that new financial firms would also be successful.Places where theconcentration ratio for new banks has increased tend to have fewe

29、r new bank charters.4-11.How well do most new banks perform for the public and for their ownersMost new banks succeed,especially those whose organizers can bring in new deposits and loanaccounts during the first year of the banks operation.Most are profitable within two to three yearsof opening.Ther

30、e is some evidence that newly charted banks are financially fragile and moreprone to failure than existing banks.They appear to be more vulnerable to real estate crises thanestablished banks.New banks tend to under perform their competitors until they have beenaround for a while and new banks are mo

31、re closely supervised than established banks.4-12.Why is the establishment of new branch offices usually favored over the chartering of newfinancial firms as a vehicle for delivering financial servicesThe chartering of a new financing corporation is normally a lengthy and expensive process,requiring

32、 the completion of elaborate federal or state application forms,while the branchapplication process is normally far simpler and less costly.Moreover,with the increase in thenumber of failures in recent years regulatory-imposed capital requirements for new charters haveincreased substantially,while n

33、ew branch offices usually carry significantly lower capitalrequirements.Moreover,branch offices themselves are often much less elaborate and costly tobuild and maintain than are the headquarters facility of a new institution where some duplicatefacilities can be eliminated(for example,checking proce

34、ssing,credit analysis,and recordsdepartments).4-13.What factors are often considered in evaluating possible sites for new branch officesBankers first need to decide the goals and objectives of a new facility.Often this means assessingwhether the proposed new branch is aimed at selling one or more pa

35、rticular services,such asdeposits or loans,and also deciding how closely correlated cash flows and returns from the newbranch office may be with cash flows and returns from the other facilities operated by the bank.Ifreturns or cash flows through the proposed new institution are negatively correlate

36、d or display lowpositive correlation with the institutions other facilities,they may be able to lower the variance ofits returns or cash flows by proceeding to establish the new office.Other considerations revolve around the economic strength of the proposed branch officesite-whether there is adequa

37、te traffic volume,large numbers of stores and shops,older or youngerage populations who often require slightly different menus of services,recent area populationgrowth,density and income,the occupational and residential makeup of the proposed new brancharea,a large enough population to generate enou

38、gh customers to breakeven and the number andsize of facilities operated by competitors.Generally,for branches designed to attract and holddeposits key factors to consider usually revolve around individual and family incomes,concentrations of retail stores and shops,older-than-average residents,and h

39、omeowners ratherthan renters.For branch facilities emphasizing credit services residential areas with substantialnew construction activity,heavy traffic flow,and high concentrations of stores and shoppingcenters are typically desirable for consumer and retail loan demand,while central city officeloc

40、ations are often chosen as locations for commercial loan facilities.4-14.What changes are occurring in the design of,and the roles played by,branch offices Pleaseexplain why these changes are occurring.Bank branches are increasingly becoming selling platforms in which more and more fee-basedservices

41、 are attractively and prominently advertised in order to maximize the fee-incomegenerating potential of each branch.Moreover,branches are becoming increasingly automated toreduce personnel and other operating costs and improve speed,efficiency,and accuracy inhandling a growing service volume.Branch

42、design has come to reflect these trends withautomated facilities placed at easy access points,along with information booths to speedily directcustomers to the service areas they need.Human tellers may be placed deeper inside branchfacilities so that customers must pass by other service departments a

43、nd conspicuous advertising inorder to encourage customers to become aware of and avail themselves of other bank services.4-15.What laws and regulations affect the creation of new bank and thrift branches and theclosing of existing branches What advantages and what problems can the closing of a branc

44、h officecreateThe opening of new branch offices must be approved by a banks or thrifts principal federal orstate supervisor.Closing a branch office has become much more complicated in recent years asthe result of several new laws and regulations.For example,the FDIC Improvement Act requires90 days a

45、dvance notice of branch closings to both customers and the principal supervisory agencyand a posting on the branch site at least 30 days prior to closing.Banks and thrifts must also makean affirmative effort to reach all segments of their communities without discrimination under theterms of the Comm

46、unity Reinvestment Act which raises the danger of customer protests againstclosings if it appears the bank is under-serving certain groups of customers.Finally,theCommunity Reinvestment Act can be used as a vehicle to prevent U.S.banks and thrifts frombranching expansion when they have a poor record

47、 of serving all segments of their communities.Closing selected branch offices can reduce operating costs and divert resources from lessprofitable to more profitable uses.However,they risk alienating good customer relationshipsunless it can serve those same customers with its remaining facilities.4-1

48、6.What new and innovative sites have been selected for new branch offices in recent yearsWhy have these sites been chosen by financial firms Do you have any ideas about other sites thatyou believe should be consideredRapid increases in new branches located in grocery stores,shopping centers,and insi

49、de otherbusinesses and facilities where the public frequently gathers have helped to reduce branchconstruction costs and promote cross-selling of goods and financial services.Other branches havebeen opened in apartment complexes,senior citizen centers,and other customer-convenientlocations as banker

50、s come to realize they must adjust their service locations and service hours toconform to customer needs in an intensely competitive financial-services environment.4-17.What are POS terminals and where are they usually locatedPoint-of-sale terminals are set up to accommodate customer purchases of go