Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 11 An Introduction to Financial Intermediaries and Risk

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Commercial Banks, June 30, 2001 (in Billions of Dollars) Financial assets$6, % Reserves Vault cash Deposits at the Fed Loans 3, Business loans 1, Mortgages 1, Consumer credit Security credit U.S. Government securities Treasury securities Government agency securities Municipal securities Corporate and foreign bonds Miscellaneous 1, Liabilities$6, % Checkable deposits Small time and savings deposits 2, (including money market and deposit accounts) Large time deposits Fed funds and repurchase agreements (net) Total a Percent of Total Assets a

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Commercial Banks, June 30, 2001 (in Billions of Dollars) (continued) Commercial paper Corporate bonds Loans and advances Miscellaneous1, Net Interbank liabilities To the Fed -0.2<.03 To domestic banks 5.3 <.1 To foreign banks (eurodollar borrowings) Net worth (capital)$89.1 b 1.4 b Total a Percent of Total Assets a a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 69.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Savings Associations, June 30, 2001 (in Billions of Dollars) Financial assets $1, % Reserves at the Fed 1.0 <.1 Checkable deposits and currency Time and savings deposits Fed funds and repurchase agreements U.S. government securities Municipal securities Corporate and foreign bonds Mortgages Consumer credit Corporate equities Loans and advances Miscellaneous Liabilities$1, % Deposits Checkable Small time and savings Large time Repurchase agreements Corporate bonds Loans and advances Miscellaneous Net worth (capital) $ 32.6 b 2.6% b Total a Percent of Total Assets a a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 73.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Credit, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$ % Checkable deposits and currency Time and savings deposits Fed funds and repurchase agreements U.S. government securities (Treasury and agency securities) Mortgages Consumer credit Miscellaneous Liabilities$ % Shares/deposits Checkable Small time and savings Large time Miscellaneous Net worth (capital)$44.9 a 9.4% b a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 74.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Life Insurance Companies, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$3, % Checkable deposits and currency and money market fund shares Corporate and foreign bonds 1, Corporate equities U.S. government securities Mortgages Policy loans Mutual fund shares Open market paper Miscellaneous Liabilities$3, % Life insurance reserves Pension fund reserves 1, Miscellaneous Net worth (capital) $ % b a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 75.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Public and Private Funds, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$6, % Checkable deposits and currency Time and savings deposits Repurchase agreements Money market mutual funds Mutual funds Corporate equities 3, U.S. government securities (Treasury and agency securities) Municipals Corporate and foreign bonds Mortgages Commercial paper Miscellaneous Liabilities $6, % Pension fund reserves $6, % a Detials may not sum to totals because of rounding. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 76.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Property and Casualty Companies, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$ % Checkable deposits and currency, and repurchase agreements 4.5 Corporate equities Municipal securities U.S. government securities Corporate and foreign bonds Trade receivables Miscellaneous Liabilities$ % b Net worth$ % b a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 75.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Mutual Funds and Money Market Mutual Funds, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$4, % Repurchase agreements Corporate equities 3, U.S. government securities (Treasury and agency) Municipal bonds Corporate and foreign bonds Commercial paper Miscellaneous Liabilities$4, % Mutual fund shares$4, % a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 75. Mutual Funds

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Finance Companies, June 30, 2001 (in Billions of Dollars) (continued) Money Market Mutual FundsTotal a Percent of Total Assets a Financial assets$2, % Checkable deposits and currency -2.8 <.14 Small time and savings deposits Repurchase agreements Foreign deposits U.S. government securities (Treasury and agency) Municipals Commercial paper Corporate and foreign bonds Miscellaneous Liabilities$2, % Money market fund shares$2, % a Detials may not sum to totals because of rounding. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 77.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Financial Assets and Liabilities of Finance Companies, June 30, 2001 (in Billions of Dollars) Total a Percent of Total Assets a Financial assets$1, % Checkable deposits and currency Mortgages Consumer credit Other Loans Miscellaneous Liabilities$1, % Corporate bonds Bank loans Commercial paper Miscellaneous Net worth (capital) b -3.2% b a Detials may not sum to totals because of rounding. b This item is not proposed as a measure of capital for use in capital adequacy analysis. SOURCE: Flow of Funds Accounts, Z1, Second Quarter Board of Governors of the Federal Reserve System (September 18, 2001): 79.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Total Financial Assets of Principal FIs (in Billions of Dollars) * Deposit-type: Commercial banks$505$1,951$3,414.4$5,635.5$6,592.2 Savings associations 252 1,180 1, , ,273.9 Credit unions Contractual-type: Life insurance companies , , ,233.6 Property and casualty companies Pension funds 170 1,211 1, , ,651.8 Investment-type: Mutual funds , ,269.9 Money market mutual fund — — , ,014.8 *Figures for 2001 are as of June 30, SOURCE: Figures for 1970 are from the Annual Statistical Digest, Federal Reserve Board, 1991, various pages. Figures for 1984 and 1990 are from the Flow of Funds Accounts, Z1, Fourth Quarters, 1984, 1990, Figures for 2001 are from the Flow of Funds Accounts, Z1, Second Quarter, 2001, various pages.