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Banking: A journalists tool box ,[object Object],Lou Ureneck Boston University [email_address]
An economy needs banks … ,[object Object],[object Object],[object Object],[object Object]
An economy needs banks ,[object Object],[object Object],[object Object],[object Object]
… And consumers need a source of information about their banks, and banking choices. ,[object Object]
Some key terms, concepts and issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Different banks, different purposes ,[object Object],[object Object],[object Object],[object Object],[object Object]
Shadow banking ,[object Object]
What is a commercial bank? ,[object Object],[object Object],[object Object]
The business model ,[object Object],[object Object],[object Object],[object Object]
Yield curve ,[object Object]
“Other income” ,[object Object],[object Object]
A business with a lot of risk ,[object Object],[object Object],[object Object],[object Object],[object Object]
Liquidity risk ,[object Object],[object Object]
Liquidity risk ,[object Object],[object Object],[object Object]
Leverage ,[object Object],[object Object]
Example of bank run
Credit risk ,[object Object],[object Object]
Credit risk ,[object Object],[object Object]
Example of bad loans
Interest rate risk ,[object Object],[object Object],[object Object]
Yield curve again ,[object Object]
Example too many deposits
Evaluating a bank ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CAMEL  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Bank scorecards  ,[object Object],[object Object]
Balance sheet ,[object Object],[object Object],[object Object]
Deposits are liabilities ,[object Object],[object Object]
A loan is an asset  ,[object Object],[object Object]
Leverage ,[object Object],[object Object]
Leverage ,[object Object],[object Object],[object Object]
Some terms  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Income statement
Balance sheet
Key numbers, ratios ,[object Object],[object Object],[object Object]
Credit to deposit ratio ,[object Object],[object Object]
Non performing assets  ,[object Object],[object Object]
Profitability ,[object Object],[object Object],[object Object]
ROA ,[object Object]
[object Object]
Net interest margin.  ,[object Object],[object Object]
Tracking banks ,[object Object]
Regulation  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Regulation and shadow banking “ Anything that does what a bank does, anything that has to be rescued in crises the ways banks are, should be regulated as a bank.” Paul Krugman
The 2007/08 crisis
Types of stories ,[object Object]
Practical advice ,[object Object],[object Object],[object Object]
Sources ,[object Object]

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Lou ureneck boston university