The differences between commercial banks and savings and loans have been
narrowing in recent years, with regulations becoming increasingly uniform
and product offerings becoming increasingly similar.
a. Visit S&P's Market Insight database at mhhe.com/edumarketinsight
and find the annual balance sheets for three of the nation's largest commercial
banks and two of the nation's largest S&Ls listed in this chapter. Look under
"Excel Analytics."
b. For each bank and S&L, compute the ratios of "Commercial Loans"
to "Loans/Claims/Advances-Customers-Total" and "Mortgages"
to "Loans/Claims/Advances-Customers-Total." These ratios indicate
what shares of the firms' total loan portfolios are made up of C&I and real
estate loans, respectively.
c. Compute the same ratios as in part (b), but for the three commercial banks
combined and the two S&Ls combined.
d. What choices have these individual firms made in terms of market focus?
Is there a difference in market focus between the commercial banks and the
S&Ls?
