Based on a sample of 10 banks of Switzerland , write a 2000 word report examining, in detail, the following three interrelated issues: Basic concepts, Profitability and risk, Empirical analysis.
– Basic Concepts: Identify and explain key items on the balance sheet and the income statement of the banks in the sample.
– Using at least 5 years of financial data (available on SNL Financial), present and interpret a number of Key profitability ratios of the sample banks, and identify trends in profitability by discussing equity and asset returns in detail AND Key risk ratios of the sample banks, and evaluate gearing risk of these banks.
– Empirical Analysis: Using at least 5 years of financial data (available on SNL Financial): Test for Structure-Conduct-Performance and relative efficiency, OR Test for competition or contestability in the banking market.