CORPFIN 2501 Financial Institutions Management

Part I: Asset and Liability Composition (50% of marks)
Present a clear and concise analysis on fund (capital) raising activities (liability + equity composition) and asset portfolio allocation (asset composition) of the banks reflected in the banks’ balance sheets.
In your analysis you have to clearly explain the major differences of the banks’ asset and liability compositions and the impacts of the 2008 global financial crisis on the banks’ asset and liability +equity compositions.
Assessment details:
a. Explain the motivation for choosing the banks
 Why did you think the banks you chose would make an interesting comparison?
Possible reasons might be size, location, areas of operation, or core activities.
b. Compare and discuss changes in asset and liability compositions of the banks over the sample period :
 Examine the compositions of the assets and liabilities from 2007 to 2010 for each bank. You may want to focus on four types of assets and four types of liabilities (i.e three largest types of assets and liabilities, and include the other smaller types in one group).
 Compare and explain how the asset and liability compositions have changed over the sample period, especially during the crisis periods. Explain how you think the global financial crisis affected the asset and liability compositions.
c. Explain potential risks faced by the banks due to the asset and liability compositions and their changes
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