Savings Institutions
The majority of assets are mortgages or mortgage backed securities and the majority of liabilities are demand and time deposit.
What is the composition of the balance sheet?
To satisfy the depository and borrowing needs of their members.
What is the primary objective of CU?
The Sales FI, Personal Credit Institutions and Business Credit Institutions.
What are the 3 types of FC?
$3,601.6 million and $1,750.90 million
What is the average size of banks and SI?
The real estate and land prices in Texas and Southwest collapsed.
What is the reason for the large number of SI failures?
The combination of relatively matched credit risk and maturity in the asset and liability portfolio.
What is the reason why CU were less affected by the sharp increase in interest rates in the 70 & 80's?
What are the main liabilities of FC?
Main focus is residential mortgages and other's main focus is consumer loans.
What is the SI verses CU main focus?
FIRREA & FDICIA
What 2 major pieces of legislation were adopted in the 80's & 90's to help the thrift crisis?
U.S. Central CU, Corporate CU and Local CU
What are the 3 tiers of the CU industry?
Consumer finance area, especially vehicle loans.
What has been the fastest growing area of business in FC?
$299 million
What is the average size of a CU?
The OCC, FDIC, and state agencies.
Who are the regulatory agencies for SI?
Consumer loans, home loans and investments on one side and member deposits on the other.
What are the main assets and liabilities of a CU?
The less regulations, do no accept deposits, industry knowledge, more willing to take on risk and have lower overhead.
What are the advantages of FC over commercial banks?
Tax exemption
What is the main advantage of CU?
Depositors are legal owners of the institution.
What is a mutual organization?
The NCUA.
What is the regulatory agency for CU?
A loan to a company used to finance business with it's suppliers.
What is a wholesale loan?
The Bank Transfer Day- Encouraged consumers to leave big banks and switch to CU or community banks.
What was 11/5/11?