Earthquake Tests , Deposit Volatility Analysis help
For this assignment, write a 5–10 page report examining deposits, the major source of funds for depository institutions. The importance of attracting and maintaining deposits as a stable and low-cost source of funds cannot be overstated. In this assignment you will be comparing the character of your bank’s JP Morgan Chase deposits across time its peer group of banks. You will glean information concerning the cost and stability of this source of funds and this assignment is used to emphasize the importance of being able to attract funds in the form of deposits, which is unique to banks and thrift institutions.
Deposit Volatility Data
Complete the following:
- Use the FDIC, Statistics on Depository Institutions Web site to create a four-column report of your bank’s information and peer group information across the years. Note: Use the pull-down menu to select Total Deposits and view this in Percentage to Total Assets.
- From the Total Deposits report collect information to break down deposits in several ways:
- Total deposits into domestic deposits versus foreign.
- Total deposits into interest bearing versus noninterest bearing deposits.
- Domestic deposits into their basic types.
For your analysis consider the following questions:
- How has the reliance on deposits as a source of funds changed across the periods?
- Has your bank relied more or less on depositors than the average bank in the peer group?
Use the chart function in Excel to create four bar charts illustrating the types of deposits supporting assets for your BHC and its peer group.
Write your report about your bank’s use of deposits as a source of funds and how it compares to its peers. Use your bar charts as a graphic and incorporate tables from your Excel spreadsheets as references. Provide inferences concerning interest costs and deposit volatility (withdrawals) based on the data you have to interpret.
Inferences for the Industry
Based on the analysis of the deposit volatility for this company, bank management theory, as covered in course readings and research, what strategies and recommendations can you offer for managing sources of bank funds—especially those related to deposits? Provide support for your position from relevant sources.
For this assignment I have chosen JP Morgan Chase as my bank to do the research on.
This website may be very helpful.