Having received these deposits, the money center banks
then sought borrowers who could be charged enough interest to enable the banks to earn a profit.
The one exception was the New York District, where the slight recovery in profitability mainly reflected reduced provisioning against foreign loans by the money center banks
Therefore, each regional would lose less than the money center banks
if everyone was forced to write off bad loans.
But, if so, why is a range of that magnitude realistic when very few national and large regional money center banks
have stockholders' equity of 5 percent of assets and most community banks have stockholders' equity of 7 percent to 10 percent of assets?
In the aggregate, the primary capital ratio of banks decreased, but most of the decline was at money center banks
, which dipped into capital to pay dividends.
ACQ806) Money Center Banks
Maintain Highly Liquid Positions - Richard X.
Smaller companies will not get attention from money center banks
, she said, and if they go to regional banks, they will hear that the banks have gotten out of the export financing business.
A slowing in the buildup of loan loss provisions, along with improvements in interest rate margins, contributed to these gains, with the money center banks
showing the sharpest turnaround.
Exposure relative to primary capital for nine money center banks
has declined from 233 percent in 1982 to 106 percent at year-end 1988.