【正文】 ing assets owned, liabilities owed, and owner’ s equity as of a specific date. ? Assets = Liabilities + Equity. ? Balance sheet figures are calculated at a particular point in time and thus represent stock values. 4/69 China Big Four Banks (12/31/2023) . All US Banks (12/31/2023) Asset (%) Liabilities(%) CN US CN US Loans Deposits Investments Borrowings Cash Other Capital Total 100 100 Total 100 100 5/69 PNC Bank (12/31/2023, TA: 63 bn) . Community National Bank (12/31/00, TA: ) Asset (%) Liabilities(%) PNC CNB PNC CNB Loans Deposits Investments Borrowings Cash Other Capital Total 100 100 Total 100 100 6/69 Bank Assets: Loans ? Loans are the major asset in most banks’ portfolios and generate the greatest amount of ine before expenses and taxes. ? They also exhibit the highest default risk and are relatively illiquid. 7/69 Loans: Categories ? Real estate loans ? Commercial loans ? Loans to individuals ? Agricultural loans ? Other loans in domestic offices ? Loans and leases in foreign offices ? Three adjustments ? Leases。 ? 金融機構(gòu)盈利性或資產(chǎn)價值對利率、匯率、商品價格或產(chǎn)權(quán)價反向變動的敏感程度； ? 銀行董事會和高級管理層識別、衡量、監(jiān)督和控制市場風險敞口的能力； ? 源自非交易性頭寸利率風險敞口的性質(zhì)和復雜程度； ? 源自交易性和境外業(yè)務市場風險敞口的性質(zhì)和復雜程度。 equity ? Ownership interest in the bank. ? Common and preferred stock are listed at par ? Surplus account represents the amount of proceeds received by the bank in excess of par when it issued the stock. 20/69 Ine Statement ? It is a financial statement showing a summary of a firm’ s financial operations for a specific period, including profit or loss for the period in question. ? A bank’ s ine statement reflects the financial nature of banking, as interest on loans and investments prises the bulk of revenue. ? Net interest ine made up approximately 77 percent of revenue at a bank in 1981, but only about 58 percent of total revenue at the end of 2023. 21/69 The Ine statement + Interest ine (II) Interest expense (IE) = Net interest Ine (NII) + Noninterest ine (OI) Noninterest expense (OE) Loanloss provisions (PLL) = Operating ine before securities transactions and taxes +() Realized gains or losses = Pretax operating ine Taxes = Net ine =burden 22/69 Interest ine ? …the sum of interest and fees earned on all of a bank39。s assets. … ? Interest ine includes interest from: ? Loans ? Deposits held at other institutions ? Municipal and taxable securities ? Investment and trading account securities 23/69 Interest expense ? …. the sum of interest paid on all interest bearing liabilities …. ? It includes interest paid to ? transactions accounts (NOW, ATS, and MMDA) ? time and savings deposits ? shortterm non core liabilities ? longterm debt ? Interest ine less interest expense is interest ine (NII) 24/69 Noninterest ine ? Trust or fiduciary ine ? reflects what a bank earns from operating a trust department ? Fees and deposit service charges ? reflect charges on checking account activity, safedeposit boxes, and many other transactions. ? Trading revenues ? reflect missions and profits or gains from operating a trading account ? Other foreign transactions ? Other noninterest ine 25/69 Noninterest expense ? Personnel expense: ? Salaries and fringe benefits paid to bank employees ? Occupancy expense : ? Rent and depreciation on equipment and premises ? Other operating expenses: ? Utilities and ? Deposit insurance premiums 26/69 Loanloss provisions (PLL) ? Represent management39。s current and prospective sources of liquidity and funds management pract