WPC huR/zz|*vjywz0R3p )M!gK[1{Uni] fK_`ӌ hSbqLk dBA u2 XÐ݁Uf7&$*\ܲ(_ʧnhawV@b3p;8/#!U@ % 0(H! 1mi 0c 1W9 07w@4Zn 0Lw} m 0 UF C  f a  @+ oA p" @op@aoawp^ 0D66666 ASzNEC SuperScript 8700|W  Z(CG Times Regular(($c:\Corel\Office7\Template\WP7US.WPT# e37=CIQYag1.a.i.(1)(a)(i)1)a)(;$2 e  0  .3  0  #37;?CGKOS-*+x(bd$0  0` (#(#2 e   .3  0 ` (#` (# BUCVDDEUFUGDHUIUJYKY@YO&ͼ3|xK(O$0  2 e  a  .3  0` (#(# U(xj$0  0` (#(#0 ` (#` (#2 e(  0  )3  0 (# (#Y] 9Z+.Courier New Regular d Table_A*OLE*WPC  !    .1   & & MathType "-@a Times New RomanF-2 k` Net incomek`k+2 Equitykk & "Systemn-WPWin 6.0/OLE 1.0 Prefix Information Marker Equation Net incomeEquity1   44\ METAFILEPICTt   .1   & & MathType "-@a Times New RomanF-2 k` Net incomek`k+2 Equitykk & "Systemn-*OLE*WPC!   .1  & & MathType "-@a Times New RomanF-2 k` Net incomek`k+2 Assetsk & "Systemn-WPWin 6.0/OLE 1.0 Prefix Information Marker Equation Net incomeAssets1   METAFILEPICTE   .1  & & MathType "-@a Times New RomanF-2 k` Net incomek`k+2 Assetsk & "Systemn-*OLE*WPC!   .1  & & MathType "-@ Times New Roman-2 kT Interest iwk~k`k2 kncome+ 2 k -~2 kz Interest ewk~k`2 kxpenses2 Assetsk & "Systemn-WPWin 6.0/OLE 1.0 Prefix Information Marker Equation Interest income-Interest expensesAssetshType  METAFILEPICT&&E   .1  & & MathType "-@ Times New Roman-2 kT Interest iwk~k`k2 kncome+ 2 k -~2 kz Interest ewk~k`2 kxpenses2 Assetsk & "Systemn-(3$ !  )M -, dc !  ݛC  ##CY((      Finance4000MoneyandCapitalMarketsTenthclass  8U((dd8  p      E23  0    WhatDoBanksDo?Ep݌(#(# Ќ         0  23  0` (#(#  Whatisabank?  6݌p` (#` (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Acceptsdepositsoffunds d݌0  (# (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Promisestopaydepositorbacktheamount  @ deposited d݌  (# (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Makesloans d݌`  (# (# Ќ        0  23  0` (#(#  Differenttypesofbanks ݌  ` (#` (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Mutualsavingsbanks d݌  (# (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Savingsandloans d݌P (# (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  Creditunions d݌` (# (# Ќ    d    du 0  0` (#(#2-3  0 ` (#` (#  Commercialbanks du ݌  (# (# Ќ   j   j_ 0  0` (#(#0 ` (#` (#23  0 (# (#  Acceptdepositsj_ ݌!(#(# Ќ   j   j_ 0  0` (#(#0 ` (#` (#23  0 (# (#  Makecommercialloansj_ ݌P$(#(# Ќ  C  %! CDBBDBB       0  23  0` (#(#  &  Banksactivitiesarefairlywellrepresentedby  ݌0 ` (#` (# Ќ    d    d 0  0` (#(#2-3  0 ` (#` (#  Balancesheets d ݌ @ (# (# Ќ    d    d0  0` (#(#2-3  0 ` (#` (#  '0 + Incomestatements d݌  (# (# Ќ   p  5YU5J JTABLERC-1ASSETSANDLIABILITIESOFFDIC-INSUREDCOMMERCIALBANKS̀InstitutionsGroupedbyAssetSizeandInsuranceFundMembership̀(AmountsinMillionsofDollars)̀AllCommercialBanks̀SEPTEMBER30,1998πNumberofinstitutions8,910Totalassets.........................................5,269,220̀Cashandduefromdepositoryinstitutions.........307,025̀Noninterest-bearing............................216,815̀Interest-bearing...............................90,211̀Securities........................................923,072̀Federalfundssoldandsecuritiespurchasedunder̀agreementstoresell........................288,418̀Loansandleases,net.............................3,088,525̀Plus:allowanceforlossesandallocated̀transferriskreserve.......................57,263̀Loansandleases,total.....................3,145,788̀Assetsheldintradingaccounts...................306,194̀Bankpremisesandfixedassets....................69,877̀Otherrealestateowned...........................3,944̀Intangibleassets.................................77,110̀Allotherassets..................................205,055Totalliabilities,limited-lifepreferredstock,̀andequitycapital...........................5,269,220̀Totalliabilities.................................4,811,790̀Deposits,total................................3,506,900̀Noninterest-bearing.....................653,789̀Interest-bearing........................2,853,111̀Federalfundspurchasedandsecuritiessoldunder̀agreementstorepurchase..................419,327̀DemandnotesissuedtotheU.S.Treasury.......28,485̀Tradingliabilities............................235,172̀Otherborrowedmoney...........................391,278̀Withremainingmaturityoflessthanoneyear..229,381̀Subordinatednotesanddebentures..............68,823̀Allotherliabilities..........................161,804̀̀Totalequitycapital..............................457,430̀Perpetualpreferredstock......................2,840̀Commonstock...................................35,107̀Surplus........................................210,700̀Undividedprofits..............................210,202̀Cumulativeforeigncurrencỳtranslationadjustments.................(1,419)#ےU##Yے#J J  ^)$2 *q ddd Xdd Xdd X(#(#q, ,+  0&  (0?+ 4 <DL!X?ےYUےK KTABLERI1INCOMEANDEXPENSEOFFDICINSURED ( COMMERCIALBANKS B8 " (  (B(AmountsinMillionsofDollars) 'x" ' ?5x3 ( (?Ѐ '\ ' ?5\" ( (?SEPTEMBER30,1998YEARTODATE '@ ' ?5@" ( (? '$ t 3 ' ?5$ t 3 ( (?Numberofinstitutions...................... I? X  g@8910g@I8,910 aW? X 3 g@8910 ( g@ (a ' < 3 ' ?5 <3 ( (?Totalinterestandfeeincome.............. '  '271,261 ?5 3 ( (?ЀLoans........................... '  '198,034 ?5 3 ( (?ЀLeasefinancingreceivables..... '  '6,382 ?5 3 ( (?ЀBalancesduefromdepositoryinstitutions '|  '4,935 ?5| 3 ( (?ЀInvestmentsecurities.................. J@`  @42277@J42,277 bX@` 3 @42277 ( @ (bЀAssetsheldintradingaccounts....... 'D  '8,341 C9D 3 ( (CЀFederalfundssoldandsecuritiespurchasedunder B8 (x  (  (BЀagreementstoresell.................. ' \  '11,291 ?5 \ 3 ( (? '@3 ' ?5@3 ( (?Totalinterestexpense..................... '$  '135,027 ?5$!3 ( (?ЀDeposits........................... '" '94,200 C9#3 ( (CЀFederalfundspurchasedandsecuritiessoldunder B8 $ (  (BЀagreementstorepurchase......... '% '16,889 C9&3 ( (CЀDemandnotesissuedtotheU.S.Treasuryand B8 d' (  (BЀotherborrowedmoney............. 'H( '20,367 ?5H)3 ( (?ЀSubordinatednotesanddebentures.. ',|* '3,571 ?5,|+3 ( (?Ѐ '`, ' ?5`-3 ( (?Netinterestincome........................ 'D. '136,234 ?5D/3 ( (? '(03 ' ?5(13 ( (?Provisionsforloanandleaselossesandallocatedtransferrisk..................... 'x3 '16,720 ?5 43 ( (? '\53 ' ?5\63 ( (?Totalnoninterestincome.................... '@7 '89,448 ?5@83 ( (?ЀFiduciaryactivities.................. '$ t9 '13,603 ?5$ t:3 ( (?ЀServicechargesondepositaccounts... '!X; '14,679 ?5!X<3 ( (?ЀTradingaccountgainsandfees........ '!<= '5,731 ?5!<>3 ( (?ЀAllothernoninterestincome.......... '" ? '55,436 ?5" @3 ( (? '#A3 ' ?5#B3 ( (?Totalnoninterestexpense.................. '$C '139,616 ?5$D3 ( (?ЀSalariesandemployeebenefits........... '|% E '57,932 ?5|% F3 ( (?ЀPremisesandequipment.................. '`&!G '17,560 ?5`&!H3 ( (?ЀAllothernoninterestexpense........... J@D'"I O@64125O@J64,125PFDD'"J3 O@64125 ( % O@ P#ےU<##Yے#K K  (P#J     323  0    Whatdobankersdotomaximizeshareholdervalue?33݌0 (#(# Ќ        t40  23  0` (#(#  Maximizevalueofbanktoowners t44݌P ` (#` (# Ќ        ^50  23  0` (#(#  Liquiditymanagement ^55݌p ` (#` (# Ќ        <60  23  0` (#(#  Assetmanagement <6g6݌ ` (#` (# Ќ        70  23  0` (#(#  Liabilitymanagement 7A7݌` (#` (# Ќ        70  23  0` (#(#  Capitalmanagement 78݌ ` (#` (# Ќ   !     =:23  0    Measuresofperformance=:h:݌ (#(# Ќ         ;0  23  0` (#(#  Returnonequity  ;4;݌P ` (#` (# Ќ     ` h.4$ ` \’6, `.E` ,+` ,h `        x<0  23  0` (#(#  Returnonassets x<<݌ ` (#` (# Ќ     ` h.4$ ` \j6 `.|E` [` [h [        =0  23  0` (#(#  Netinterestmargin =>݌ ` (#` (# Ќ     ` h.4$ ` \jX  `.E` zCC` zCh z   #) EEGEEG    ?23  0    Recentdevelopments??݌ (#(# Ќ        X@0  23  0` (#(#  ATManddebitcards X@@݌ ` (#` (# Ќ        4A0  23  0` (#(#  Newformsofdeposits 4A_A݌P ` (#` (# Ќ    d    dB0  0` (#(#2-3  0 ` (#` (#  NOW(negotiableorderofwithdrawal)accounts dB=B݌`  (# (# Ќ    d    dC0  0` (#(#2-3  0 ` (#` (#  ATS(automatictransferfromsavings)accounts dCDC݌   (# (# Ќ    d    d!D0  0` (#(#2-3  0 ` (#` (#  Sweepaccounts d!DLD݌  (# (# Ќ  FF    E23  0    PossiblefuturedevelopmentsE@E݌`(#(# Ќ        E0  23  0` (#(#  Electronicbanking EF݌ ` (#` (# Ќ        F0  23  0` (#(#  Smartcards FF݌!` (#` (# Ќ        G0  23  0` (#(#  Digitalcurrency GG݌P$` (#` (# Ќ        nH0  23  0` (#(#  Resultsofdigitalrevolution nHH݌'`"` (#` (# Ќ   p(#     hI23  0    CharacteristicsofUnitedStatesBankinghII݌(#(# Ќ        EJ0  23  0` (#(#  Manybanks EJpJ݌p` (#` (# Ќ    d    dK0  0` (#(#2-3  0 ` (#` (#  Over8,000 dKCK݌0  (# (# Ќ    d    dK0  0` (#(#2-3  0 ` (#` (#  Farmorethanmostothercountries dK'L݌ @ (# (# Ќ   j   jL0  0` (#(#0 ` (#` (#23  0 (# (#  UnitbankingbacktoearlyU.S.historyjL#M݌ (#(# Ќ   j   jN0  0` (#(#0 ` (#` (#23  0 (# (#  RiegleNealInterstateBankingandBranching p  EfficiencyActof1994jN;N݌ (#(# Ќ    d    dPO0  0` (#(#2-3  0 ` (#` (#  Implicationsforthefuture dPO{O݌  (# (# Ќ        EP0  23  0` (#(#  Separationofcommercialbankingfrominvestment P banking EPpP݌ ` (#` (# Ќ    d    dRQ0  0` (#(#2-3  0 ` (#` (#  Separationofcommercialbankingfromcommerce dRQ}Q݌p (# (# Ќ    d    dZR0  0` (#(#2-3  0 ` (#` (#  GlassSteagellAct dZRR݌0  (# (# Ќ    d    dFS0  0` (#(#2-3  0 ` (#` (#  Effectsofrepeal dFSqS݌"@ (# (# Ќ   j   j1T0  0` (#(#0 ` (#` (#23  0 (# (#  Competitioninsecuritiesbusinessj1T\T݌%!(#(# Ќ   j   jDU0  0` (#(#0 ` (#` (#23  0 (# (#  UniversalbankingjDUoU݌p(#(#(# Ќ   ) % II    gV23  0    Financialinnovationsassociatedwiththedeclineof   traditionalbankinggVV݌ (#(# Ќ        pW0  23  0` (#(#  Moneymarketmutualfunds pWW݌ @` (#` (# Ќ        RX0  23  0` (#(#  Junkbonds RX}X݌ ` (#` (# Ќ        %Y0  23  0` (#(#  Commercialpaper %YPY݌p ` (#` (# Ќ        Y0  23  0` (#(#  Securitization Y)Z݌0 ` (#` (# Ќ  HH    Z23  0    BanksresponsesZ [݌P(#(# Ќ        [0  23  0` (#(#  Focusmoreonnoninterestincome [[݌`` (#` (# Ќ        \0  23  0` (#(#  Securitizeassets \\݌ ` (#` (# Ќ