Define the degree of Liquidity Risk, Capital Risk, Interest Rate Risk and Credit Risk of the Bank you analyse based on ratio analysis; and compare your bank to the other international banks in your sample during the last five years, based on ratio analysis and the information provided in annual reports, macroeconomic data and published news. Please make sure that you show your findings in tables, mention the steps takento compute them and you comment briefly about these findings
Part 4 (250 words)
Compute the effect of shocks over the bank you analyse. Shocks will be those as
a) EBA stress tests and
b) Bank of England stress tests, regarding GDP growth change.
Show your findings in tables, mention the steps taken to calculate the effect, and
critically evaluate the ability of the company to withstand a shock in GDP growth.
Part 5 (200 words)
Compute the additional capital the company may need in the following 4 years (2020-
2023) to be able to cover regulatory needs as described in Basel Accords based on a
scenario that assumes EBA stress tests and a scenario that assumes Bank of England
stress tests regarding shocks in GDP growth. Again, show your findings in tables,
mention the steps taken to compute them and briefly comment about these findings
Part 6 (400 words)
Propose any suggestions regarding the bank’s management strategy so as to
minimise risks and maximise profitability. Critical discussion should include reference
to both books and published papers in academic journals.
Published papers can be retrieved by using library resources (or/and google scholar).
You should aim to use at least 3 books and at least 5 good quality papers published
recently. Good quality papers are published in academic journals with 3-star or 4-star
rating. A list of 3- and 4-star academic journals can be found at:
An indicative list of 4-star journals under the ABS ranking is also provided below.
Good Quality Academic Journals (4-star):
Accounting Review, Accounting, Organisations and Society, American Economic
Review, Econometrica, Economic Journal, Financial Analysts Journal, Journal of
Accounting and Economics, Journal of Accounting Research, Journal of
Econometrics, Journal of Economic Literature, Journal of Economic Perspectives,
Journal of Economic Theory, Journal of Finance, Journal of Health Economics, Journal
of International Economics, Journal of Labor Economics, Journal of Law Economics,
Journal of Monetary Economics, Journal of Political Economy, Journal of Public
Economics, Journal of the European Economic Association (JEEA), Journal of Urban
Type of service-Academic paper writing
Type of assignment-Coursework
Pages / words-6 / 1500
Academic level-GCSE / A Level
Language style-UK English