Copyright © 2000 Addison Wesley Longman Slide #17-1 Chapter Seventeen THRIFTS: SAVINGS AND LOANS AND CREDIT UNIONS

Copyright © 2000 Addison Wesley Longman Slide #17-2 Thrift Institutions Mutual Savings Banks Depositors are owners of the firm No stock in the bank, not sold or issued Savings and Loan Association Created by Congress Insured deposits and scandals ： 1980 年代 S&L bailout Credit Unions Ownership Membership

Copyright © 2000 Addison Wesley Longman Slide #17-3 Savings and Loan Industry Today Number of Institutions Types of Loans S&L Size S&L Assets S&L Liabilities and Net Worth Capital

Copyright © 2000 Addison Wesley Longman Slide #17-4 Savings and Loan Industry Today (1)S&L 到 70 年代中期為止都很健全。因為享受到低成本資 金來源，而放款又很安全 ( 因為不動產很景氣 ) (2)70 年代末期， i  ，由於 Reg Q, 使其存款流失，而且早期 fixed rate mortgage 使 S&L 獲利下跌。 (3)80 年代初期 1.deregulation ，允許 S&L 做其他的 Loan ( 如 commercial, consumer), 或買 junk bond ，但 S&L 本身沒有這方面的 expertise ，所以出現許多呆帳。 2.regulators 沒有足夠的 resource 和 expertise 來監督 S&L( 因為國會不通過 ) 3. 存款保險  道德危機 4. 不動產市場不景氣

Copyright © 2000 Addison Wesley Longman Slide #17-5 Savings and Loan Industry Today (4)80 年代中期，晚期的 regulatory forbearance ，造成 “zombie S&L” why? 1.regulator 沒有足夠的錢接管 S&L 2. 接受賄賂 (S&L 是政客的金主 ) 3. 面子問題 (regulator 是 agent ，納稅人才是 principal)  有很多 S&L 早該倒，但 regulator 允許他們將 goodwill 算 作 equity (5) 造成很多 S&L 的 moral hazard, risk-taking behavior ，如 ：沙漠中蓋購物中心，買 junk bond ，同時壞的 S&L 會打 敗好的 S&L 。

Copyright © 2000 Addison Wesley Longman Slide #17-6 Savings and Loan Industry Today (6)90 年代初期，情況開始好轉 1.RTC 接管倒閉的 S&L ，處理不動產，花掉 150billion 2. 新的 S&L 監理單位 3. 提高存款保險費率 4. 立法限制 S&L 所能持有的資產  mortgage

Copyright © 2000 Addison Wesley Longman Slide #17-7 Decline in Number of Savings and Loan Associations (1)Fail (2)RTC takeover (3)merged with others (4)Convert into 商業銀行 or 信合社

Copyright © 2000 Addison Wesley Longman Slide #17-8 Total Assets of Savings and Loan Associations

Copyright © 2000 Addison Wesley Longman Slide #17-9 Savings and Loan Assets

Copyright © 2000 Addison Wesley Longman Slide #17-10 Savings and Loan Size Average size per S&L million ∵ (E/A) 要提升 ∴ A 

Copyright © 2000 Addison Wesley Longman Slide #17-11 S&L Balance Sheet Savings and Loan Associations AssetsLiabilities Securities252,042 Loans secured by 632,256 real estate Commercial loans17,768 Loans to individuals48,851 Other loans and leases2,881 (Less reserve for loan-6,984 losses) Other real estate owned1,765 Goodwill12,688 All other assets83,530 Total assets 1,044,797 Deposits702,607 Other borrowed funds230,674 Notes and debentures2,930 All other liabilities15,197 Total liabilities951,406 Equity93,391 Total of liabilities and equity1,044,797

Copyright © 2000 Addison Wesley Longman Slide #17-12 The Future of the S&L Industry

Copyright © 2000 Addison Wesley Longman Slide #17-13 Savings and Loan’s Return on Equity S&L industry 現在已恢復正常 但未來是否會被消滅 ( 如：不動產證券化是 S&L 最大競爭者 )? Probably not!

Copyright © 2000 Addison Wesley Longman Slide #17-14 Credit Unions Mutual Ownership Owned by depositors Common Bond Membership Defined field of membership Nonprofit, Tax-Exempt Status Lower service fee Regulation and Insurance Central Credit Unions Help with members’ credit needs Invest excess funds Hold clearing balances Provide educational services Credit Union Size ： 小 Trade Associations ： 為了 economy of scale

Copyright © 2000 Addison Wesley Longman Slide #17-15 Credit Union Fees vs. Bank Fees

Copyright © 2000 Addison Wesley Longman Slide #17-16 Number of Credit Unions,

Copyright © 2000 Addison Wesley Longman Slide #17-17 Types of Accounts Regular Share Accounts Savings accounts Receive no interest Do receive dividends but not guaranteed Share Certificates Compatible to CDs Share Draft Accounts ： 像 checking deposit Pay interest Write drafts against account

Copyright © 2000 Addison Wesley Longman Slide #17-18 Types of Accounts Advantages Employer Support Tax Advantage Strong Trade Associations Disadvantages Common Bond Requirement