Banks’ liability management

  Banks’ liability management   The 2008 global financial crisis was partly caused by banks’ failure in liability management (or funding management). a. Contrast between deposit and non-deposit liability sources by highlighting differences in their funding costs as well as other non-cost implications (for instance, risks, market factors, etc.). Your discussion should be supported by real-life examples. (Guide: 1000 words, 16 marks) Aim: Students must show understanding of four (4) differences from a theoretical perspective, supported with real-world examples. For each difference discussed, 2 marks are awarded for a theoretical explanation and 2 marks for examples. b. Comment on the relative importance of different liability items on a specific Australian bank balance sheet. (Guide: 300 words, 6 marks) Aim: Students must include the balance sheet of the chosen bank in their essay, calculate the proportions of three (3) liability items and comment on their relative weight. 2 marks for each item discussed. c. Download Orbis data for four (4) Australian commercial banks during 2012-2016 with regard to their liability mix and construct two (2) graphs that illustrate the trends in their liability mix over these years. Each graph is a line chart containing four (4) lines for the chosen banks. Based on these graphs, comment on differences between banks (peer analysis) as well as changes over time (trend analysis). (Guide: 500 words, 8 marks) Aim: Download relevant data from Orbis or banks’ annual reports from 2012 to 2016, present them meaningfully in line charts for the 4 chosen banks, and provide trend and peer analyses. 4 marks are allocated to each graph (2 marks for the graphical presentation and 2 marks for trend and peer analyses). Note: Approximately 200 words are recommended for introduction and conclusion together. Subheadings should be used to separate parts a, b and c. Word limit: 2,000 words (±10%), excluding references and appendices.