The Bank Management assignment is a Group project requiring teams to carry out a competitive analysis of national banking systems.
Overview of Requirements;
Form into teams of five students only. I expect team members to show courtesy and respect towards one another. Inform me of the membership of each team.
Prepare an Analyst Report on the team’s findings from an analysis of data provided by The World Bank in its Global Financial Development Database. Each team can access the latest version (July 2018) of this database by clicking on:
The report should be around 2,500 words. It should contain tables and charts that will not form part of the word count. Teams should place their tables and charts at suitable points in the report.
Team members will receive the same mark adjusted by peer assessment using WebPA. Failure to submit a WebPA evaluation will result in a deduction of 10% for an individual.
The assignment constitutes 20% of the overall mark for Bank Management.
Submit the Report into TurnItIn. Non-compliance will result in the award of a zero mark.
Note that plagiarism including use of essay mills is a serious offence.
Bangor Business School will consider extensions for assignments only if the request includes certifiable evidence of a genuine complaint or circumstance.
The submission date is Friday 6th December 2019.
Your assignment for Bank Management will deepen your knowledge of how analysts examine competitive conditions and the performance of national banking sectors. The assignment will sharpen your analytical skills and your ability to work comfortably with Excel, which is widely used in the banking and financial industry. Thus, the assignment is an excellent opportunity for you to develop transferable skills as well as to improve academic knowledge.
After sourcing the database, select any five countries one of which must be the UK.
The database contains a number of indicators and it is each group’s responsibility to decide which indicators to analyze. The database includes definitions of each indicator as well as identifying the indicators in four broad areas: Access; Depth; Efficiency; Stability. The indicators focus on banking sectors and financial markets. Below are some recommendations that can help teams to build up their analysis.
Identify the level of financial deepening in the banking system of your choice. Show whether the systems are bank-based and/or market-based, which is important for banks wishing to diversify their activities. Similarly, you can extend your analysis to cover access to services.
To what extent are the national banking systems over or under-banked? Is there room for banks to extend further credit and take additional deposits?
How competitive is each banking system? Which measures of competition are available and justify your preference.
Are individual banking systems becoming more or less competitive over time?
To what extent are banks able to exploit market power in their national banking systems?
What is the level of profitability in each banking system and are banks becoming more or less profitable over time?
Which factors could be driving trends in bank profitability? Focus attention on any possible tradeoffs between bank profitability and bank liquidity, and bank profitability and bank solvency. Consider also the quality of bank loans.
Take the inverse of the ratio of bank capital-to-total assets to obtain a measure of leverage. Plot the relationship between bank profitability and leverage. Discuss why leverage is important and what your observations indicate.
How diversified are the national banking systems? Hint: look at the ratio of non interest income to-total income.
Are national banking systems effective in their management of overhead costs?
Taking the ratio of cost-to-income to proxy bank efficiency, what do the data tell you about how efficient national banking systems are?
Taking the Z score to proxy bank stability, what do the data tell you about how stable (risky) national banking systems are?
Using suitable graphics, plot the relationship between competition and efficiency; competition and stability; and efficiency and stability. Discuss your observations.