第 1 页 CHAPTER 5 THE FINANCIAL STATEMENTS OF BANKS AND THEIR PRINCIPAL COMPETITORS Goal of This Chapter: The purpose of this chapter is to acquaint the reader with the content, structure and purpose of bank financial statements and to help managers understand how information from bank financial statements can be used as tools to reveal how well their banks are performing. Key Topics in this Chapter An Overview of the Balance Sheets and Income Statements of Banks and Other Financial Firms The Balance Sheet or Report of Condition Asset Items Liability Items Recent Expansion of Off-Balance Sheet Items The Problem of Book-Value Accounting and ”Window Dressing” Components of the Income Statement: Revenues and Expenses Appendix: Sources of Information on the Financial-Services Industry Chapter Outline I. Introduction: The Statements Reviewed in This Chapter II An Overview of Balance Sheets and Income Statements III The Balance Sheet (Report of Condition) A. The Principal Types of Accounts B. Assets of the Banking Firm 1. Cash and Due from Depository Institutions 2. Investment Securities: The Liquid Portion 3. Investment Securities: The Income-Generating Portion 4. Trading Account Assets 5. Federal Funds Sold and Reverse Repurchase Agreements 6. Loans and Leases 7. Loan Losses 8. Specific and General Reserves 9. International Loan Reserves Income (noncurrent) Loans 第 2 页 Premises and Fixed Assets Real Estate Owned (OREO) and Other Intangible Assets Other Assets C. Liabilities of the Banking Firm 1. Deposits 2. Borrowings from Nondeposit Sources 3. Equity Capital for the Banking Firm a. Preferred Stock b. Common Equity D. Comparative Balance Sheet Ratios for Different Size Banks E. Recent Expansion of Off-Balance-Sheet Items in Banking F. The Problem of Book-Value Accounting G. Auditing: Assuring Reliability of Financial Statements IV. Components of
