Chapter 4
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| Options for timely financial services | Chatering new financial institutions ,Establshing new full-service branch offices, Setting up limited service facilities
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| Benefits of Applying for a federal (national) bank | Added prestige due to strict regulatory standards, authorities may be of better quality in times of trouble to enable long term survival, Federal banking rules can pre-empt state laws
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| Benefits of Applying for a state bank charter | Easier and less costly with less supervision, need not joid Fed Reserve, some stantes allow to lend a higher % of capital to a single borrower, offer certain services like real estate brokerage that national bankds can't
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| Questions regulartors usually ask the Organizers of a new (de novo) bank | What are the ppulation and geographic boundaries of the primary service area from which the new financial firm is expected to generate most of its loans and deposits?
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| Questions regulartors usually ask the Organizers of a new (de novo) bank | How many competiting banks, savings and loans, credit unions, finance companies, and insurance companies are located within the service area of the proposed new financial institution?
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| Questions regulartors usually ask the Organizers of a new (de novo) bank | What are the number, types, and sizes of business in the area? What are the traffic patterns in the proposed area?
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| External factors weighting on Decision to Seek a New Charter (2) | Level of economic activity, growth of economic activity, need for a new financial firm
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| Internal factors weighing on Decision to Seek a New Chater (2) | Qualifications and contacts of organizers, management quality, pledging of cpital to cover cost of new charter
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| Branch offices vs. new financial corp | Branches are cheaper (n onew charter or resources)
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| Desirable Sites for new Branches (3) | Heavy traffic count, large #'s of retail shops and stores, populations above average age, above average of population growth and density, Above-average levels of household income.
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| Geographic diversification | effect that reduces overall risk exposure (expected rate of return, various of E(r), covariance of E(r) from new branch and existing assets
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| Things to consider in the expected return of a new branch | Risk and covariance of a proposed new branche's expected return
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