Your analysis of the case study bank will take a giant leap forward with Part II. This part will
concentrate on regulatory attributes of soundness and liquidity for your assigned bank.
Banks don’t necessarily provide all info required for an outsider to run these calculations. Some
assumptions must be made. For example, a 30-day cash out flow can be assumed to be some credit
line funding, 1/12 of the total of CDs maturing this FY, and a proportion (5-10% runoff) of
deposits. (To get the amount of credit line fundings, check the bank’s OBS liabilities. For CD
totals, check notes for Deposits.)
Purpose:
Develop an understanding of the criteria of banking regulations, and the areas of particular interest
to regulators.
Instructions:
Use the bank data you compiled when you were doing Part I. Use the amended cover sheet
provided in this week’s files. Copy and paste the format to your existing cover sheet. After
completion of the calculations, determine if you believe the bank is in compliance. (They probably
are). Upon completion, upload your file to canvas. 50 points total.
Calculations Required (see PowerPoint “Global Banking Regulations and Standards”):
Capital Adequacy Ratio (CAR)
Liquidity Coverage Ratio
Net Stable Funding Ratio
Attached is calculations from Part 1 for assigned bank which is NBT bancorp.
Also add cover page to excel that looks like the following attached form
