United States Banking Industry

Use all available resources in the Library and online, research the banking industry in the U.S. and do the following: A. Evaluate how in general the banking industry has performed since the last financial crisis and economic recession when the U.S. government bailed out some banks.

1. B. Collect the financial data for five years on a bank of your choice and conduct the following evaluations using the key banking ratios as follows:
2. Key Profitability Ratios

Return on Equity Return on Assets Net Interest Margin Net Non-Interest Margin Net Operating Margin Earnings per Share

2. Performance Evaluation Ratios

Credit Risk

Nonperforming loans/Total loans and leases

Net charge-offs of loans/ Total loans and leases

Annual provision for loan losses/Total loans and leases or total equity

Allowance for loan losses/total loans and leases or relative to equity capital

Nonperforming loans/Equity capital

Liquidity Risk

Purchased funds/Total assets

Cash and due from balances held at other depository institutions/Total assets

Cash assets and government securities/Total Assets

Market Risk

Book value of assets/Market value of equity

Market value of bonds and other fixed-income assets/The value of as recorded in the financial institution’s books

3. Explain the following bank risks as they relate to your bank.

Interest Rate Risk

Operational Risk

Legal and Compliance Risk

Reputation Risk

Strategic Risk

Capital Risk

4. Include other factors you believe impacted the performance of your bank. Pay attention to the loan loss provisions.
5. Indicate how complying with the Dodd–Frank Wall Street Reform and Consumer Protection Act might have impacted your bank this bank.
6. Deliberate on this assignment and conform to this format of presentation:
7. Introduction
8. Objective of the Research

III. Presentation of Findings a. Performance of the U.S. Banking Industry Since the last financial crisis and economic recession b. A 5-year Evaluation of XYZ Bank

1. Conclusion References

The Individual draft and final project should be typed double spaced and must not be more than 10 pages long.

Include a table of content, a bibliography, side headings and the project must be properly paged with no grammatical or spelling errors. Failure to do this will result in loss of marks.