Chapter Seventeen
The Near Banks
Copyright © 2004 Pearson Education Canada Inc. Slide 17–3
Near Banks
• Trust Companies
• Mortgage Loan Companies
• Credit Unions
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Trust Companies
History and organization
Corporate trustees
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Mortgage Loan Companies
– History and Organization
– Regulation
– Deposit Insurance
– The Balance Sheet
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Copyright © 2004 Pearson Education Canada Inc. Slide 17–7
Credit Unions
– Mutual Ownership
– Common Bond Membership
– Nonprofit, Tax-Exempt Status
– Central Credit Unions
– Organizational Structure
– Deposit Insurance
– Credit Unions across Canada
– Credit Union Size
– The Balance Sheet
Copyright © 2004 Pearson Education Canada Inc. Slide 17–8
Copyright © 2004 Pearson Education Canada Inc. Slide 17–9
Copyright © 2004 Pearson Education Canada Inc. Slide 17–10
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Copyright © 2004 Pearson Education Canada Inc. Slide 17–12
Savings and Loan Industry in the U.S.
• Will Review– Number of institutions
– Types of loans
– S&L size
– S&L assets
– S&L liabilities and net worth
– Capital
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Copyright © 2004 Pearson Education Canada Inc. Slide 17–14
Decline in Number of Savings and Loan Associations in the U.S.
FDIC statistics on banking industryhttp://www2.fdic.gov/qbp
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Total Assets of Savings and Loan Associations, 1979–2001
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Savings and Loan Assets, 2001
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Average Assets per Savings and Loan Association, 1984–2001
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The Future of the S&L Industry (Net Income)
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Savings and Loan’s Return on Equity
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Number of Credit Unions in the U.S., 1933–2001
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Types of U.S. Credit Union Loans
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Advantages and Disadvantages of Credit Unions
• Advantages– Employer support
– Tax advantage
– Strong trade associations
• Disadvantages– Common bond requirement
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Credit Union Membership in the U.S., 1933–2002
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Future of Credit Unions in the U.S.