Banking and Financial Regulations: Terms and Definitions, Quizzes of Chinese Language

Download Banking and Financial Regulations: Terms and Definitions and more Quizzes Chinese Language in PDF only on Docsity! TERM 1 food in chinese` DEFINITION 1 asawate TERM 2 money in chinese DEFINITION 2 fublisawu TERM 3 tree in chinese DEFINITION 3 hdshfu TERM 4 the Glass-Steagall Act of 1933 defined "commercial banks" as: DEFINITION 4 Make commercial loans (assets) Accept demand deposits (liabilities) TERM 5 define: Retail banks DEFINITION 5 banks focused on consumer oriented banking Consumer loans Small time deposits TERM 6 The federal agency responsible for chartering national banks is DEFINITION 6 The Office of the Comptroller of the Currency TERM 7 Banks operating under state charters are DEFINITION 7 NOT required to do anything for fed national charter office of the comptroller of th ecurrency TERM 8 what type of banking organization was FIRST to provide non-banking services (which were prohibited by Glass-Steagall) DEFINITION 8 One-Bank Holding Companies TERM 9 What did the McFadden Act of 1927 establish? DEFINITION 9 Made all banks subject to each states intra-state branch banking laws Prohibited inter-state banking TERM 10 describe a MultiBank Holding Company? DEFINITION 10 Used to reach other geographic banking markets In states where banks were restricted with branching TERM 21 what does the Consumer Financial Protection Bureau do? DEFINITION 21 Protects consumers from hidden fees deceptive practices TERM 22 what does the Financial Stability Oversight Council do? DEFINITION 22 monitors systematic risk TERM 23 financial institution whose failure could trigger a financial crisis is known by the FED as: DEFINITION 23 a systematically importantinstitution TERM 24 Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FED is allowed to provide 1) _______ but is prohibited from 2) ________ DEFINITION 24 system-wide support for banks bailing out any individual financial institutions. TERM 25 banks should hold enough economic capital to be able to DEFINITION 25 Absorb unexpected losses to a level that's only exceeded with a small probabilityby risk tolerance TERM 26 define: economic capital DEFINITION 26 the amount of capitalneeded to absorb unexpected losses over a period of time given the bank's risk tolerance TERM 27 the biggest contributor to both financial and overall bank risk is DEFINITION 27 Credit risk TERM 28 the expected loss on a loan is determined by (three things) DEFINITION 28 at default, the loan's: Probability Loss given Exposure TERM 29 give an example of operational risk DEFINITION 29 Over one week after the September 11th attack on the World Trade Center, the Bank of New York was still unable to re- establish crucial communication lines. TERM 30 give 2 ways credit risk may arise DEFINITION 30 concentration/ counterparty/ systematic/ borrower specificrisk from: Lack of diversification (loans and securities) Spread of defaults (in different bank segments) TERM 31 example of sovereign risk DEFINITION 31 The decision by Iceland's prime minister not to repay loans made to Iceland by the UK and France during the recent worldwide financial crisis TERM 32 what 3 things could lead a bank towards liquidity risk DEFINITION 32 Unexpected withdrawals of deposits Inability to liquidate quickly Inability to borrow additional funds TERM 33 If a bank funds its longer term (fixed int) with shorter term (int bearing) funds, what 4 things are true DEFINITION 33 Morein "Rate Sensitive"liabilities than "R/S" assets Negative GAP Bank takes interest rate risk Increasein Net IncomeONLYif interestdecreases TERM 34 financial risks (credit, market, etc) contribute approximately __% to the earnings volatility in banking DEFINITION 34 70%