TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 13 - Ritter, Silber, Udell

Chapter 13 - Nondepository financial institutions. In this chapter you will learn to understand the broad range and function of nondepository financial institutions, describe the tools of insurance companies, define the types and obligations of pension funds. | Chapter 13 Nondepository Financial Institutions Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • Understand thee broad range and function of nondepository financial institutions • Describe the tools of insurance companies • Define the types and obligations of pension funds • Distinguish finance companies and alternative financing institutions such as venture capital funds, hedge funds, and mezzanine debt funds Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 13-2 Life Insurance Companies • The first life insurance company in the . was established before the Revolutionary War and is still in existence • Structured as either stock companies (owned and controlled by shareholders) or mutual associations (ownership and control rests with the policyholders) • Supervised and regulated almost entirely by the states in which they operate Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 13-3 1 Life Insurance Companies (Cont.) • Regulation of life insurance companies includes: – Sales practices – Premium rates – Allowable investments • Usually overseen by a state insurance commissioner, who might also be the state banking commissioner Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 13-4 Life Insurance Companies (Cont.) • Types of life insurance policies: – Whole Life Insurance • Constant premium that is paid through entire life of policy • Build up cash reserves or savings which can be withdrawn as borrowing or outright by canceling the policy • Savings component pays a money market rate of interest that changes with market conditions Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 13-5 Life Insurance Companies (Cont.) • Types of life insurance policies: (Cont.) – Term Life Insurance • Pure insurance with no cash reserve or savings element • Premiums are relatively low at first but increase with the age of the insured individual – Universal (variable) Life • Variation

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Nondepository financial institutions
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation