1 CHAPTER 22 Consumer Finance Operations. 2 CHAPTER 22 OVERVIEW This chapter will: A. Identify the main sources and use of finance company funds B. Describe.

Slides:



Advertisements
Similar presentations
Read to Learn Compare and contrast three types of banks that are found in our economy. Explain the major functions of the Federal Reserve System in the.
Advertisements

CHAPTER ONE An Overview of Banks and the Financial Services Sector
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter One An Overview of Banks and the Financial-Services Sector.
1 Financial Markets and Institutions Leng Ling Department of Economics & Finance Georgia College & State University.
2-1 CHAPTER 2 AN OVERVIEW OF FINANCIAL INSTITUTIONS.
Insurance and Pension Fund Operations
An Overview of Financial Markets and Institutions
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 16 | Slide 1 Chapter 16: Mastering Financial Management.
CHAPTER FIFTEEN Lending Policies And Procedures The purpose of this chapter is to learn why sound lending policies are important to banks and other lenders.
Finance Companies Chapter 5
McGraw-Hill /Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Fourteen Other Lending Institutions.
Sources of Capital CHAPTER 9 SECTION 1: Saving SECTION 2: Investing
Theory and Practice 7th Edition Terrence M. Clauretie G. Stacy Sirmans
Other Institutions Economics 71a Spring 2007 Mayo, Chapter 4 Lecture notes 2.4.
© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Financial Management and Banking.
An Overview of the Changing Financial- Services Sector
CHAPTER 23 Consumer Finance Operations. Chapter Objectives n Identify the main sources and uses of finance company funds n Describe the risk exposure.
Chapter  A bank is business just like a store or factory  Sells services such as checking, and payment accounts, savings accounts, loans, and.
ORGANIZATIONAL SET UP OF FINANCIAL INSTITUTIONS. Functions of Financial Institutions  1. Aids the flow of capital  2. Credit allocation  3. Provides.
Lecture 8 Lending function (1) Franco Fiordelisi Introduction to banking.
Career Tracks and Opportunities in Finance. Different Finance Career Tracks  Corporate Finance  Investments  Banking and Financial Services  Insurance.
An Overview of Banks and Their Services
CHAPTER 22 Consumer Finance Operations. Copyright© 2002 Thomson Publishing. All rights reserved. Types of Finance Companies 1. Consumer finance companies.
Consumers & Savers A consumer is anyone who buys goods or services for personal use. Consumer spending is the biggest component of total spending in the.
Finance Companies Chapter 6 © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
Finance Companies Chapter 6 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. K. R. Stanton.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Web Chapter 27 Finance Companies. Copyright ©2015 Pearson Education, Inc. All rights reserved.27-1 Chapter Preview Suppose you need to buy a car, but.
1 PART VI Commercial Banking. 2 CHAPTER 17 Commercial Bank Operations.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter One An Overview of Banks and the Financial-Services Sector.
1 Chapter 22 Consumer Finance Operations © 2001 South-Western College Publishing Company.
Slide 20–1. Chapter Twenty Venture Capital Firms, Finance Companies, and Financial Conglomerates.
©2007, The McGraw-Hill Companies, All Rights Reserved 14-1 McGraw-Hill/Irwin Chapter Fourteen Other Lending Institutions: Savings Institutions, Credit.
NETA PowerPoint Presentations to accompany The Future of Business Fourth Edition Adapted by Norm Althouse, University of Calgary Copyright © 2014 by Nelson.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 11 An Introduction to Financial Intermediaries and Risk.
All Rights Reserved Dr David P Echevarria 1 CONSUMER FINANCE OPERATIONS CHAPTER 22.
Chapter 7 Commercial bank financial statement Salwa Elshorafa 2009 © 2005 Pearson Education Canada Inc.
1 Chapter 2 Flow and Sources of Real Estate Funds.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
© Prentice Hall, 2007Excellence in Business, 3eChapter Keeping the Engine Running: Financial Management and Banking.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Supervision of Groups: Case Study
Do Now In a few sentences, describe the barter system. What are its advantages and disadvantages? If you had to function within a barter system, what would.
2-3 Other Measures of Business Activity. Goals Discuss investment activities that promote economic growth. Explain borrowing activities by government,
Chapter Twenty Venture Capital Firms, Finance Companies, and Financial Conglomerates.
Chapter 1 Why Study Money, Banking, and Financial Markets?
1 Chapter 22 Consumer Finance Operations Financial Markets and Institutions, 7e, Jeff Madura Copyright ©2006 by South-Western, a division of Thomson Learning.
Chapter 17 Financial Services 1 ©2008 Thomson/South-Western.
CHAPTER 16 THRIFT INSTITUTIONS AND FINANCE COMPANIES Copyright© 2012 John Wiley & Sons, Inc.
©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Financial Services Financial Institutions Common Financial Services.
REAL ESTATE FINANCE Theory and Practice 6 th Edition Terrence M. Clauretie G. Stacy Sirmans.
Commercial Paper By Debra Davidson and Ali Monday.
Chapter 1 Overview of Real Estate Finance. Chapter 1 Learning Objectives Understand the relationship between finance and real estate Understand the relationship.
Bellwork 1.What are the three functions of money? 2.What is the purpose of the Federal Deposit Insurance Corporation? 3.When was the Federal Reserve System.
Non-Bank Financial Institutions Finance Companies, Insurance Companies, Pension Funds, Mutual Funds, and Real Estate Investment Trusts Chapter 5 Dr. BALAMURUGAN.
FINANCIAL SECTOR Kaleigh Theurer. DEFINITION  Category of stocks containing firms that provide financial services to commercial and retail customers.
McGraw-Hill/Irwin Bank Management and Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. WELCOME TO GB30503 INTERNATIONAL.
Chapter 11 Financial Markets. Saving and the Financial System Saving The act of not spending money Savings Dollar Amount from that non consumptions of.
McGraw-Hill /Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved Chapter Seventeen Finance Companies.
CHAPTER 6 Financial Services: Finance Companies Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.McGraw-Hill/Irwin.
All Rights Reserved Dr David P Echevarria 1 CONSUMER FINANCE OPERATIONS CHAPTER 22.
Summary of the financial intermediation system 1 General Public Companies Government Savers Investors Provide funds Pay returns on those funds.
An Overview of Financial Markets and Institutions
Chapter 2 Learning Objectives
CHAPTER ONE An Overview of Banks and the Financial Services Sector
Chapter 12 Money and Financial Institutions
Lecture 2 Chapter 2 Outline The Financing Decision
Chapter 10 Section 3 Banking Today
Chapter eight Types of Banks
2-3 Other Measures of Business Activity
Presentation transcript:

1 CHAPTER 22 Consumer Finance Operations

2 CHAPTER 22 OVERVIEW This chapter will: A. Identify the main sources and use of finance company funds B. Describe risks faced by finance companies

3 Finance Companies 1. Finance companies provide short- and intermediate-term credit to consumers and small businesses. 2. Independently owned or subsidiaries of large financial institutions or corporations such as General Motors, Ford Motor, Citigroup,

Types of Finance Companies a. Consumer finance companies provide financing for customers of retail stores or wholesalers, or mortgage loans. b. Business finance companies provide loans to small businesses. c. Captive Finance Subsidiaries subsidiary to finance sales of the parent company’s products and services. (automobile industry) 4

Advantages of Captive Finance Subsidiaries (CFS) 1. separate manufacturing and retailing activities from financing activity. 2. CFS has no reserve requirements. 3. Help to promote sales. 5

6 Sources of Finance Company Funds a. Loans from banks b. Commercial paper c. Deposits d. Bonds e. Capital

7 Uses of Finance Company Funds a. Consumer Loans b. Business Loans and Leasing c. Real Estate Loans

Exhibit 22.1 How Finance Companies Finance Economic Growth

9 Risks Faced by Finance Companies 1. Liquidity Risk 2. Interest Rate Risk 3. Credit Risk

10 Valuation of a Finance Company Factors That Affect Cash Flows a. Economic Growth b. Change in the Interest Rates c. Change in Industry Conditions

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.