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1、如有侵权，请联系网站删除，仅供学习与交流商业银行管理 ROSE 7e 课后答案chapter_04【精品文档】第 44 页CHAPTER 4CREATING AND MANAGING SERVICE OUTLETS:NEW CHARTERS, BRANCHES, AND ELECTRONIC FACILITIESGoal of This Chapter: The purpose of this chapter is to learn how new banks are chartered by state and federal authorities in the United States
2、, to determine what makes a good site for a new branch office, to recognize how the role of branch offices is changing, and to explore the advantages and disadvantages of automated banking facilities. Key Topics in This Chapter Chartering New Financial Service Institutions Performance of New Banks E
3、stablishing Full Service Branches In-Store Branching Establishing Limited Service Facilities ATMs and Telephone Centers The Internet and Online BankingChapter OutlineI.IntroductionA.The Importance of Convenience and Timely Access to CustomersB.Service Options Available Today1.Chartering New (De Novo
4、) 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 a National C
5、harterC.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.Strength and Charac
6、ter of Local Competition in Supplying Financial ServicesB.Internal Factors1.Qualifications and Contacts of the Organizers2.Management Quality3.Pledging of Capital and Funds to Cover the Cost of Filing a Charter Application and Getting UnderwayVI.Volume and Characteristics of New Bank ChartersA.Numbe
7、rs of New Charters B.Characteristics of New Charter MarketsVII.How Well Do New Banks Perform?A.New Bank Financial PerformanceB.Pro-Competitive Effects on Service Offerings and Service PricingVIII.Establishing Full-Service Branch Offices: Choosing Locations and Designing New BranchesA.Advantages of F
8、ull-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-Sale Te
9、rminalsXI.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 Centers B.Internet Banking1.Services Provided Through the
10、 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 despite recent advances in long-dist
11、ance communications technology?Many customers still prefer the personal attention and personal service that contact with bank employees provides. Moreover, for those services where problems can arise that require detailed information and explanation-for example, when a checking account is overdrawn
12、and checks begin to bounce-the customer needs quick access and, often, the personal attention to his or her problem on the part of one or more employees.4-2. Why is the creation (chartering) of new banks closely regulated? What about nonblank financial firms?The creation of new banks is regulated to
13、 insure the safety and soundness of existing banks and to avoid excessive numbers of bank failures. The same arguments are usually made for non-bank financial firms. Financial-Service firms hold the publics savings, are the heart of the payment system and create money. The failure of these firms cou
14、ld disrupt the economy and too many could 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 number of financial service charters issued?While control over the entry of new banks may reduce the number of
15、failures, it also limits competition, so that the public may receive a smaller volume or lower quality of services at excessive prices.4-4.Who charters new banks in the United States? New thrift institutions?New banks are chartered by the banking commissions of the individual states or, at the feder
16、al level, by the Comptroller of the Currency. Thrift institutions are chartered by the states or at the federal level by the Office of Thrift Supervision.4-5.What key role does the FDIC play in the chartering process?The FDIC exercises some control over state bank charter activity as well as federal
17、 charters because most states insist that their new banks qualify for federal deposit insurance before they can open for business.4-6.What are the advantages of having a national bank charter? A state bank charter?The benefits of a national charter are:a.) It brings prestige due to stricter regulati
18、ons and may help attract more customersb.) In times of trouble the technical assistance given may be better ensuring a better chance 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 Reser
19、ve and therefore avoids buying and holding low 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 chartered bank cannot4-7.What kinds of information must the organizers of new national b
20、anks provide the Comptroller of the Currency in order to get a charter? Why might this required information be important?The Comptroller of the Currency asks for information on the number of competing banks and bank-like institutions in the service area of the proposed bank. More competitive market
21、situations limit the profit potential and perhaps the growth potential of a new bank. Also requested is information about shopping centers, retail and wholesale business activity, recent population growth, traffic counts, and personal income levels - all viewed as indicators of potential demand for
22、banking services in the service area of the proposed new bank. Applicants must also provide background information on the organizers and proposed management of a new bank so the Comptroller can decide if these people are qualified, law-abiding, and trustworthy to manage the publics funds as well as
23、their own.4-8.Why do you think the organizers of a new financial firm are usually expected to put together and submit to the chartering authority a detailed business plan, including marketing, management, and financial components?This demonstrates to regulators that the organizers of the bank have t
24、he expertise, experience and skills necessary to be successful in managing the new bank. If the organizers of a bank do not know where they are going, they are unlikely to be successful. In addition, it demonstrates whether the organizers of the new bank have a realistic picture of the community the
25、y are planning on serving and whether the organizers have a realistic view of the profit potential in the new bank.4-9.What are the key factors the organizers of a new financial firm should consider before deciding to seek a charter?While a variety of factors are examined by different business peopl
26、e interested in establishing a new bank, most look at some or all of the following factors.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 financial services.2.Intern
27、al Factorsa.Qualifications and contacts of the new banks organizers.b.Management quality.c.Pledging of capital and funds to cover the cost of filing a charter application and begin operations.4-10.Where are most new banks chartered in the United States?New charters tend to be concentrated in large u
28、rban areas where expected rates of return on the organizers investments are likely to be the highest. As the population increases relative to the number of financial firms, the number of new charters increases. The success of local banks already in the area suggests that new financial firms would al
29、so be successful. Places where the concentration ratio for new banks has increased tend to have fewer new bank charters.4-11. How well do most new banks perform for the public and for their owners?Most new banks succeed, especially those whose organizers can bring in new deposits and loan accounts d
30、uring the first year of the banks operation. Most are profitable within two to three years of opening. There is some evidence that newly charted banks are financially fragile and more prone to failure than existing banks. They appear to be more vulnerable to real estate crises than established banks
31、. New banks tend to under perform their competitors until they have been around for a while and new banks are more closely supervised than established banks.4-12.Why is the establishment of new branch offices usually favored over the chartering of new financial firms as a vehicle for delivering fina
32、ncial services?The chartering of a new financing corporation is normally a lengthy and expensive process, requiring the completion of elaborate federal or state application forms, while the branch application process is normally far simpler and less costly. Moreover, with the increase in the number
33、of failures in recent years regulatory-imposed capital requirements for new charters have increased substantially, while new branch offices usually carry significantly lower capital requirements. Moreover, branch offices themselves are often much less elaborate and costly to build and maintain than
34、are the headquarters facility of a new institution where some duplicate facilities can be eliminated (for example, checking processing, credit analysis, and records departments).4-13.What factors are often considered in evaluating possible sites for new branch offices?Bankers first need to decide th
35、e goals and objectives of a new facility. Often this means assessing whether the proposed new branch is aimed at selling one or more particular services, such as deposits or loans, and also deciding how closely correlated cash flows and returns from the new branch office may be with cash flows and r
36、eturns from the other facilities operated by the bank. If returns or cash flows through the proposed new institution are negatively correlated or display low positive correlation with the institutions other facilities, they may be able to lower the variance of its returns or cash flows by proceeding
37、 to establish the new office.Other considerations revolve around the economic strength of the proposed branch office site-whether there is adequate traffic volume, large numbers of stores and shops, older or younger age populations who often require slightly different menus of services, recent area
38、population growth, density and income, the occupational and residential makeup of the proposed new branch area, a large enough population to generate enough customers to breakeven and the number and size of facilities operated by competitors. Generally, for branches designed to attract and hold depo
39、sits key factors to consider usually revolve around individual and family incomes, concentrations of retail stores and shops, older-than-average residents, and homeowners rather than renters. For branch facilities emphasizing credit services residential areas with substantial new construction activi
40、ty, heavy traffic flow, and high concentrations of stores and shopping centers are typically desirable for consumer and retail loan demand, while central city office locations are often chosen as locations for commercial loan facilities.4-14.What changes are occurring in the design of, and the roles
41、 played by, branch offices? Please explain why these changes are occurring.Bank branches are increasingly becoming selling platforms in which more and more fee-based services are attractively and prominently advertised in order to maximize the fee-income generating potential of each branch. Moreover
42、, branches are becoming increasingly automated to reduce personnel and other operating costs and improve speed, efficiency, and accuracy in handling a growing service volume. Branch design has come to reflect these trends with automated facilities placed at easy access points, along with information
43、 booths to speedily direct customers to the service areas they need. Human tellers may be placed deeper inside branch facilities so that customers must pass by other service departments and conspicuous advertising in order to encourage customers to become aware of and avail themselves of other bank
44、services.4-15.What laws and regulations affect the creation of new bank and thrift branches and the closing of existing branches? What advantages and what problems can the closing of a branch office create?The opening of new branch offices must be approved by a banks or thrifts principal federal or
45、state supervisor. Closing a branch office has become much more complicated in recent years as the result of several new laws and regulations. For example, the FDIC Improvement Act requires 90 days advance notice of branch closings to both customers and the principal supervisory agency and a posting
46、on the branch site at least 30 days prior to closing. Banks and thrifts must also make an affirmative effort to reach all segments of their communities without discrimination under the terms of the Community Reinvestment Act which raises the danger of customer protests against closings if it appears
47、 the bank is under-serving certain groups of customers. Finally, the Community Reinvestment Act can be used as a vehicle to prevent U.S. banks and thrifts from branching expansion when they have a poor record of serving all segments of their communities.Closing selected branch offices can reduce ope
48、rating costs and divert resources from less profitable to more profitable uses. However, they risk alienating good customer relationships unless it can serve those same customers with its remaining facilities.4-16.What new and innovative sites have been selected for new branch offices in recent years? Why have these sites been chosen by financial firms? Do you have any ideas about other sites that you believe should be considered?Rapid increases in new branches located in grocery stores, shopping cente