金融学专业 论文农业银行股份制改革研究中英文附录.doc

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1、 毕业论文 论 文 名 称 农业银行股份制改革的障碍及对策研究学 生 姓 名 指 导 教 师 专 业 金融学 学 院 金融学院 附录一Functions of Global Commercial BanksCredit ServiceThe primary function of a global commercial bank, of course, is to accept deposits and lend money. Indeed lending is the cornerstone of global banking activity. Banks is overseas mark

2、ets may lend money in local currency to local clients out of branches or subsidiaries in foreign countries, funded by local currency deposits or by local money-market borrowings. For example, Deutsche Banks branch in Mexico City may lend pesos to a local car manufacturer, funded by peso deposits in

3、its local branch. This is purely local business, in which the bank competes with domestic banks or with affiliates of other foreign financial institutions.Alternatively, the bank may also engage in cross-border lending, in which a loan is made to a borrower in a country other than the lenders reside

4、nce, and is denominated in a currency other than that of the borrowers currency. According to Federal Reserve Chairman Alan Greenspan in 1998, cross-border lending doubled in previous decade. For example, Deutsche Banks branch in London may loan U.S dollars to the same car manufacture in Mexico City

5、. This loan is funded by dollars generated worldwide.All lending activities, whether direct or syndicated, should generate revenue for the bank. The spread is akin to gross profit on the loan; it is the difference between the interest the bank earns on the loan and the interest it pays on its own bo

6、rrowed funds. The spread should be sufficient to cover overhead, risk, and profits. Lending activities can also generate a variety of fees. One form of lending, for example, is the revolving credit facility. This permits the customer to borrow, or draw, up to a certain maximum amount over an agreed

7、time period under an agreed interest formula. This formula is usually based on the London Interbank Offered Rate, or LIBOR(the interest rate paid between banks for dollars on deposit in London), plus a margin reflecting the borrowers creditworthiness. Thus General Motors, for example, might pay LIBO

8、R plus 1/4 percentage point, while Bolivia might pay LIBOR plus 3percetage points. The bank, in turn, earns a commitment fee for standing ready to lend, whether or not the funds are actually disbursed. As we shall see, bans earn fees from a variety of lending-based services, such as syndicated loans

9、 and letters of credit. Syndicated Loan FacilitiesSyndicated Loan are central tool international banking, widely used by banks to meet customers need for large-scale and/or high-risk loans. A syndicated loan is a credit extended by a group of bank to a single customer, usually on common terms. This

10、permits the risk, which might be too large for one bank to accept on its own, to be shared out among a large group of bank. It also facilitates the extension of credits that would otherwise be too big for one bank to handle. Moreover, the syndication technique enables large and medium-sized regional

11、 banks to participate in international lending activities. Syndicated Loans are accompanied by a weighty set of loan documentation and some standard legal agreement. For example, the agreement will usually specify the judgment currency and legal jurisdiction if the parties find it necessary to go to

12、 court; it will specify that all creditors are to be treated equally; and it will require the borrower, if a government, to waive its right to sovereign immunity(meaning that the bank can sue the government if necessary).Syndication can be a handsome source of fee revenue for the lead bank or banks.

13、 In general, the borrower pays a commitment fee on the funds that are not disbursed, plus interest on the funds that are drawn down (usually, LIBOR plus a margin), as well as agent fee. Typically, one or more large bank acts as lead or agent in the facility, gathering information for use in judging

14、the creditworthiness of the borrower organizing the loan, and selling it down to other participating banks. The lead institution must have the ability to market the credit to other financial institutions, and to perform the necessary tasks of structuring and pricing the credit. Chase Manhattan (now

15、J. P. Morgan Chase) has long reigned as the top bank in syndicated lending worldwide, with around 25 percent market share.The notion that syndicated loans reduce risk by sharing it out received a rude awakening in the 1980s, however, Credits to shaky Latin American borrowers, for example, were syndi

16、cated widely, often unsophisticated regional institutions with little or no expertise in international lending. There is a tendency for participants in the syndication to replay heavily o the credit analysis of the large, more sophisticated bans, and it is unclear to what extent the lead bank is res

17、ponsible for the accuracy of the information presented on the borrow.Thus it is not surprising that following a period of fast-paced growth in the 1970s, the syndicated loan market dried up after 1981 as a huge portion of bank resources were redirected into rescheduling problem loans to emerging mar

18、ket borrowers. Many bankers came to believe that the syndication process contributed to problems in unraveling the Third World debt crisis of the 1980s. Many small, regional banks were clearly in over their heads., and they became a weak link as the rescheduling process unfolded. (Why were local ban

19、ks in Louisiana and Kentucky lending to Brazil in the first place?) By the mid-1980s, many banks had transferred or fired their syndication experts and the bank closed down their syndication departments.The process was accelerated by a tighter international ban regulatory regime, which emerged after

20、 the Basel agreement on capital adequacy was announced in1988. This agreement required bans to maintain a certain ratio capital to loans according to a complex and controversial formula, producing a era of retrenchment for money. For the next few years, international bans were forced to build up the

21、ir capital bases and were drawn away from private sector lending toward sovereign (loans to governments and public sector entities), which require less allocations of risk capital. As a result, ”club” deals became more popular I the late 1980s. Rather than a syndication of 100 or more banks club dea

22、ls were put together quietly by a handful of big banks. As the 1980s gave way to 1990s, however the syndicated loan market began to rise from its ashes. With Third World debt issues resolved and capital adequacy levels healthy once more, banks began looking to rebuild their loan portfolios, while bo

23、rrowers were eager to take advantage of the bans willingness to lend once more. Syndicated loans can provide large amounts of funding very quickly and easily. They guarantee confidentiality to the borrower, which may be critical if the customer raising funds for a acquisition or merger. Accordingly,

24、 by the middle to late 1990s, the revival in international syndicated lending had turned into a boom.The number of new syndicated loans hit a new record I 199697, amid increasingly fierce competition among banks to win the coveted (and lucrative) position of lead manager or agent. Spreads on loans t

25、o emerging market banks and subinvestment-grade European companies declined to unheard-of lows. Loans to Czech and South African bans, which would have been doe at around 1.0 percentage point above LIBOR just 18 months earlier, were made at just 0.2 percentage points above LIBOR in 1997. Price diffe

26、rentiation between top-grade and second-tier borrowers, according to some observers, declined to dangerously low levels. During 1997 the gap between spreads paid by developed country borrowers ad developing country borrowers almost disappeared. Partly because banks were so keen to win mandates from

27、emerging market borrowers I order to establish new relationships, major mispricing of credit risk undoubtedly occurred. Bankers insist, though, that they demanded more ancillary, fee-based business to accompany the low-cost loans.Following the Asian financial crisis in 1997, the market for syndicate

28、d lending tightened up once more, and some of this mispricing has been corrected. In fact the latest development is the use of “market-flex” clauses to protect bankers against some of the risk involved in syndicated lending. These clauses, which were pioneered by Chase in 1997 and became increasingl

29、y popular I the next two years, allow lenders to alter the pricing or structure of the la as market condition fluctuate. During 1998 and 1999 spreads also rose sharply, especially on syndicated loans to emerging market countries such as those in Latin America. The strongly rated Chilean electric com

30、pany, for example was able to borrow at LIBOR plus 0.25 percentage points in early 1998; by year-end, the spread had widened to 2.25 percentage points.In the first half of 1999, volumes in the syndicated loan market soared once more, fueled by a boom in European mergers and acquisitions. Syndicated

31、lending has reemerged as the primary source of finance for mergers and acquisitions, especially in the European market; nearly half of the new syndicated loans worldwide in the first half of 1999 were denominated in the euro European, the new European currency introduced on January 1, 1999. Analysts

32、 expect the European syndicated loan market to continue expanding strongly, as long as merger and acquisition activity continues to expand.Project Finance Project Finance is somewhat less susceptible to the boom-bust cyclicity of syndicated lending, but it too experienced a sharp resurgence in the e

33、arly to middle 1990s, followed by a dramatic in 1997-98. Project finance refers to financing for large-scale capital projects, which are generally very large in scale, log in term and high in risk. “Pure” project financing occurs when the debt is to be serviced only by cash flows attributable to the

34、 project itself, without recourse to the projects “sponsors”. The borrower is the project itself,. Thus project financing dose not appear o the balance sheet of the sponsors, and it does not affect their financial structure or creditworthiness.From the lenders point of view, project finance can be a

35、 risky proposition indeed. Since the projects are usually long term in nature, the debt maturities can stretch out even over several decades increasing the riskiness of the credit. Moreover, infrastructure tend to generate cash in local currency, creating currency risk for banks that are lending in

36、dollars. Even worse, revenue earned by local infrastructure companies, such as power companies, may be artificially manipulated by politicians. Thus a central task of bankers involved in project finance is to identify and quantify the risks, and then to allocate them acceptably among the various par

37、ticipants in the project.A list of the risk associated with project finance would include the following:l Resource risk: the possibility that the oil, gas, or minerals expected to be in the ground will not be present in sufficient quantities to service the debt.l Input risk: the chance that the basi

38、c viability of the project will be threatened by the unavailability or high prices of key inputs such as energy or raw materials.l Completion risk: the risk that the project will be delayed indefinitely, resulting in substantial cost overruns.l Market risk: the risk that future demand for the produc

39、t will decline.l Operating risk: the risk that even after the project becomes operational, costs will change or critical elements such as labor or transportation will be disrupted.l Force majeure: the possibility that-so-called ”acts of God” will occur to disrupt the project, ranging from warfare to

40、 weather.l Political risk: the possibility that political conditions surrounding the project will become adverse.l Regulatory risk: the risk that is represented to the projects completion by change in a governments rules and regulations pertaining to a certain industry. Such actions as tax hikes pro

41、hibition of certain activities, and opening a market up to additional competition may negatively affect the outcome of the project as well as jeopardize its ability to repay the loan.International project finance activity boomed the first half of the 1990s, reflecting deregulation, privatization, an

42、d rapid economic growth in emerging market countries. The value of loans and bonds raised without official guarantees soared by 53 percent in 1995 alone, driven largely by activity in Asia, where rapid growth was putting severe pressure on the power and transportation infrastructure. As in the syndi

43、cated loan market, margins on bank lending in this sector narrowed sharply as competition intensified, and bankers showed more willingness to assume some of the aforementioned risks. Also, as in the syndicated loan market, project finance activity slowed markedly following the financial crisis of 19

44、97-98, especially in Asian and Latin American market.Trade FinanceMuch less “sexy”and much less riskythan syndications and project finance, trade finance is the breadand butter operation of international lending. Indeed, trade finance is the great-granddaddy of international banking. Prior to the 19

45、60s, the international operations of U.S. banks were mostly limited to financing international trade. Even today, trade financing is an important revenue source for many international banks. The primary instrument of trade finance is the letter of credit(LC) which allows the credit of the bank to be

46、 substituted for that of the customer. An LC is a draft drawn by a company or individual on a bank, ordering it to pay a specified amount at a specified time accepted by the bank to a named individual (or the bearer). In effect, the bank promises that payment will be made on the specified date. This

47、 facilitates international trade between a buyer and seller who otherwise would not be willing to ship goods without some guarantee that payment will be made. Banks change a fee for LCs contingent liabilities most will never require the ban t make a payment.There are other types of LC as well. A sta

48、ndby letter of credit may be issued to reassure creditors that the bank will stand ready to make payment if the original borrower is unable. Companies routinely obtain standby LCs to back up their commercial paper offerings for instance. A performance letter of credit obliges the bank to guarantee t

49、hat its customer will perform some service as required; if the customer fails to provide the service, the bank will be forced to make restitution. All letter of credit provide fee income for the bank.Commercial Paper Commercial paper, or CP, is a standard financing technique for U.S. corporations. It refers to short