1. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 1 1 An Overview of Banks and their Services In this chapter you will learn about the many roles banks play in the economy today and see how recent trends in banking, including increased competition, technological change consolidation into larger firms, and globalization can affect a bank manager’s decision making.

3. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Traditional Services Offered By Banks Exchange of Currency Commercial Notes and Loans Offering Savings Deposits Safekeeping of Valuables Supporting Government Activities with Credit Checking Accounts Trust Services

4. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Recent Services of Banks Consumer Loans Financial Advice Cash Management Equipment Leasing Venture Capital Loans Selling Insurance Products Security Underwriting and Brokerage Services Mutual Funds and Annuities Merchant Banking Services

5. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Roles of Commercial Banks Intermediation Role Payment Role Guarantor Role Risk Management Role Savings/Investment Advisor Role Safekeeping/Certification of Value Role Agency Role Policy Role

6. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Trends Affecting All Banks Service Proliferation Competition Deregulation Rising Funds Costs Increased Interest Rate Sensitivity Technology Consolidation and Geographic Expansion Increased Risk of Failure