CH05wholesalebanking(金融市场学,上海大学,悉尼大学).pptx

Direct financing services
- Overview Cheaper for large-value borrowers The role of underwriter - Bill facilities
Bill facilities
What? Why? How?
Risk Management Services
- Financing services
源自文库Direct Indirect
Sources of funds
- Overseas and domestic wholesale markets - CDs
What is CD? Features: very short term; CD rates and
Loans
- RBA data on bank loans to business indicate that:
Most funds are lent as term
loans
More funds are lent in the form of small-value loans than in wholesale amount
3 activities
Corporate financing Risk management Investment
management
Corporate Finance Services
Overview
- Advisory services
Mergers and acquisitions Financial planning Raising funds
banking
The growth in direct relative to indirect forms of financing – disintermediation
Most banks are members of IBSAA
Merchant banks are mainly responsible for the establishment of wholesale banking services
Risk Management Services
Market-risk management instruments (derivatives ) - Forward contracts - Futures contracts - Options - Swaps
Foreign exchange services
- The foreign exchange market operates essentially at the wholesale level - Services include trading and consulting
Australia’s Wholesale Banks
NBFIs Major banks Investment banks Branch banks
credit rating; issue yield higher than that of fixed-term retail deposits
Effects: Allows banks to access the
money markets as an alternative source of funds to retail customers; An alternative to selling securities
Loans
- Term loans - Leasing
Operating lease: short term
Financial lease: medium term
- Overdrafts : A lending facility that allows the customers to overdraw his or her cheque account, up to the overdraft limit
What is whole sale banking?
-Provided products -Participants
- Customers: large companies, financial institutions and governments - Providers: small organizations handling large amounts and paying large salaries
2 major services
-Direct financing service -Indirect financing service
2 sources of income
Interest income Non-interest income
The development of Australia’s wholesale
Chapter 5
wholesale banking
Study Objectives
- Describe the role of wholesale banking - Describe the main activities of wholesale banking - Identify the financial institutions that supply wholesale-banking services - Describe the off-balance sheet holdings of banks
Overview - 2 forms of financial risk: credit and market - Credit risk is the default risk faced by the suppliers of funds - Market risk is posed by volatile market variables: interest rates; exchange rates; security prices.