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Hi, everyone,
I am doing topic 8, on banking industry. The liquidity ratios for banking industry are so different from what we have learned in BPP books!
There is no gearing ratio for banks, only capital ratios like tier 1! Will they fail me because I used ratios are not on BPP textbook?
Is there someone who has done topic 8 for a bank could help me out here? Please!
Many many thanks!!!
Hi.please elaborate what you mean by they are different and why different?what is tier 1??
You cannot take a text book approach. Look at capital adequacy ratios, the CAMELS model and the Basel Accords. Look at the bank’s strategies and as per my other posts – DON’T just rely on the annual reports. Good graphs, lots of explanations and avoid lots of figures in the text.
I cannot believe people really do reply here!!! Thank u thank u thank u to everyone replies!
I did SWOT analysis and graphs, cite a lot of references from newspapers and magazines.
What I am worry about is that I used efficiency ratio, capital ratio( Basel three), and loan/deposit ratio. Those ratios are for banking industry only, and they are not traditional ratios.
Could they fail me because these ratios are not from textbook? There is noway that comment ratios will apply here….
Should I do appendix to explain how the ratios calculated?
Dear trephena, u have other posts regarding the bank industry?
How I can look them up?@Rita. Sounds to me you are doing it right – so chill! Yes re appendices. By my other posts I meant Topic 8, referencing and general RAP advice. The RAP is not about textbooks Rita!
Thank u trephena?i feel much more confident now 🙂
I think we all worry because there only one chance every 6 months and only 3 attempts available…
Anyway, thank u again!
Hi all.i’m doing my RAP topic 8,hoping to submit in November and just wanted to ask,..on the checklist it is a requirement to prove that i’ve used a spreadsheet and/or IT…how exactly do i do that?? I’ve copy pasted the figures from the annual report and used formulas to compute the ratios…is that enough?
@motty47 -yes that will be enough just load the Excel file when you submit
I am doing T8 on the banking industry and am baesd in Zambia,Africa.Can i apply these models(Basel & Camel) when analysising my ratios?
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If any one is working on banking sector for OBU thesis on topic number 8 then plz share you guys experiences. We can help each other on this.
@nomsa80 – you should make every attempt to incorporate these as your analysis should be tailored to the banking sector. You will also need to use a SWOT and/or PESTLE
I have chosen the banking sector for topic 8. Which all business models are appropriate and best for the banking sector? CAMELS, Porter’s 5 forces, PEST/EL, SWOT?
Also the chosen bank has subsidiaries while the competitor doesn’t. Would that be an issue?@trephena I am doing topic 8 on Banking industry too. I might not be able to submit my project in this session. The next session’s submission is in May. The annual reports I currently have are only till 2014 as the 2015’s wont be out until March first week. If my submission will be in May, will I have to include 2015’s annual report too or can I use until 2014? Is there any rule regarding it?
@lit234 – I would not bother with Porter’s but use the other models. Mention the subsidiary issue in you Limitations. I have gone into the financial statement problem today on the Forum topic ‘ Topic 8: Financial Statement Problems’ so please look there forr help with this.
@trephena I have learned that Earning assets are the assets that earn money easily for the business. In a banking industry which of the following does apply?
1) Treasury bills
2) Non investment trading securities
3) Interest in associated companies and joint ventures
4) Loans and advances to customers
5) Deposits and amounts due from banks and other financial instituitions
6) Interest receivable and other assets
7) Cash and balances with central banks
8) Premises and equipments
I believe that 7 and 8 does not include in the category as an earning asset. Please correct me if I am wrongAlso is it alright to take the “Interest and similar income” total for calculating Gross yield on earning assets? The title includes-(4), Non trading investment securities available for sale, (5), Non trading investment securities amortised cost, (1) and, Interest recovered on impaired financial assets- loans and advances to customers.
I would really appreciate if you could help me.
Thanks.
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