Timothy W. Koch

• University of South Carolina

In the second quarter of 2009, the FDIC imposed a special assessment on insured banks to replenish the deposit insurance fund. While the traditional assessment base for regular deposit insurance premiums was all insured deposits, the special assessment was applied to a bank’s total assets minus Tier 1 capital (total liabilities), with the maximum ‘...

Recently, there has been a marked increase in the number of banks choosing to operate as Subchapter-S Corporations. The apparent motivation is tax savings as Subchapter-S firms do not pay federal income taxes on income at the firm level, but transfer income to stockholders where it is taxed as individual income at personal tax rates. Given the appa...

To the public, all banks seem alike. But banking insiders make important distinctions between community banks and all other banks. Policymakers worry that community banks’ unique characteristics threaten their survival in the face of industry consolidation. However, despite dramatic regulatory and technological changes in the industry in the past t...

The tax treatment of commercial banks as investors in municipal securities changed dramatically with the loss of interest expense deductibility for municipal carrying costs under the Tax Reform Act of 1986. Competing theories of relative yield determination suggest that the lost deductions and recent reductions in corporate and personal tax rates s...

Overview of the banking industry and regulation -- Evaluating bank performance -- Management interest rate risk -- Managing the cost of funds, bank capital, and liquidity -- Extending credit to businesses and individuals -- Managing the investment portfolio and special topics

In the second quarter of 2009 the FDIC charged banks a special assessment with the intent of replenishing the deposit insurance fund, which had been depleted by numerous bank failures. Unlike traditional deposit insurance premiums, the special assessment was applied to a bank"s total assets minus Tier 1 capital (net assets), with the maximum that a...