TAILIEUCHUNG - Lecture Money and capital markets: Chapter 14 - Peter Rose, Milton Marquis

Chapter 14 - The commercial banking industry: Structure, products, and management. In this chapter, you will learn to understand how important commercial banks are to the functioning of a modern economy and financial system; to explore the structure of the united states’ banking industry; to learn about bank financial statements and how to read them; to see how banks create and destroy money and credit, and why this activity is vital. | Chapter 14 The Commercial Banking Industry: Structure, Products, & Management Learning Objectives To understand how important commercial banks are to the functioning of a modern economy and financial system. To explore the structure of the United States’ banking industry. To learn about bank financial statements and how to read them. To see how banks create and destroy money and credit, and why this activity is vital. Introduction The dominant privately owned financial institution in the . and in the economies of most major countries is the commercial bank. This institution offers the public both deposit and credit services, as well as a growing list of newer and more innovative services, such as investment advice, security underwriting, selling insurance, and financial planning. The Structure of . Commercial Banking Number of Operating Commercial Banks in the . at Year-end 2003 Source: Federal Deposit Insurance Corporation A Trend Toward Consolidation One of the most .