Absolutely before the first exam date, you are to choose a medium to large sized AMERICAN (as in headquartered and chartered in the USA) Commercial bank, and study its performance over time and with respect to its peers (Time-series and cross-section) with special emphasis given to issues analyzed in this course.(Google ‘Large US commercial banks’, go to https://www.federalreserve.gov/releases/lbr/current/default.htm choose a bank in the top to middle range).
You are expected to gather AND analyze financial data relevant for such analysis from both the web (FDIC is a good source, start at https://www2.fdic.gov/sdi/main.asp ) and the NYU library resources. You must notify the TF by the date of the first exam in writing as to which bank you wish to work on, and get her approval. This date would put you in a late start. SO, start NOW!
I also want you to send the TF your raw data as Excel spreadsheets by October 31st. This is mandatory. If no data or late data by this date, you go down by one grade level.
EXPECTATIONS: The list below contains activities that not all banks may engage in. If your bank does not have significant activity or does not provide sufficient data to analyze, just state the fact and move on. Do NOT waste space by defining ratios/tools etc. Do the best job you can, as you will be compared to your peers. Students in prior years have used their projects as part of their portfolio in their job searches.
• Study your bank for at least 5 periods (years, quarters) with an eye towards:
• Interest rate risk exposures (maturity mismatches at the least)
• Market Risk Exposures (trading assets at the least)
• Credit Risk exposures (loan portfolios at the least, loan losses, non-performing loans, etc…)
• Liquidity Risk exposures
• Off balance sheet exposures
• Capital adequacy
• Profitability (ROA,ROE)
• Risk management (securitization, loan sales, derivatives, etc.)
• Sovereign risk exposures (LDC loans)
• Analyze your bank’s positions over the years, and also compare it to the national aggregates, and/or its peers. Use at least 2-3 peers.
• Where do you see your bank going? What are its prospects?