Deposit volatility analysis, business and finance assignment help
For this assignment, write a 5–10 page report examining deposits, themajor source of funds for depository institutions. The importance ofattracting and maintaining deposits as a stable and low-cost source offunds cannot be overstated. In this assignment you will be comparing thecharacter of your bank's JP Morgan Chase deposits across time its peergroup of banks. You will glean information concerning the cost andstability of this source of funds and this assignment is used toemphasize the importance of being able to attract funds in the form ofdeposits, which is unique to banks and thrift institutions.Deposit Volatility DataComplete the following:Usethe FDIC, Statistics on Depository Institutions Web site to create afour-column report of your bank's information and peer group informationacross the years. Note: Use the pull-down menu to select Total Deposits and view this in Percentage to Total Assets.From the Total Deposits report collect information to break down deposits in several ways:Total deposits into domestic deposits versus foreign.Total deposits into interest bearing versus noninterest bearing deposits.Domestic deposits into their basic types.AnalysisFor your analysis consider the following questions:How has the reliance on deposits as a source of funds changed across the periods?Has your bank relied more or less on depositors than the average bank in the peer group?Usethe chart function in Excel to create four bar charts illustrating thetypes of deposits supporting assets for your BHC and its peer group.Writeyour report about your bank's use of deposits as a source of funds andhow it compares to its peers. Use your bar charts as a graphic andincorporate tables from your Excel spreadsheets as references. Provideinferences concerning interest costs and deposit volatility(withdrawals) based on the data you have to interpret.Inferences for the IndustryBasedon the analysis of the deposit volatility for this company, bankmanagement theory, as covered in course readings and research, whatstrategies and recommendations can you offer for managing sources ofbank funds—especially those related to deposits? Provide support foryour position from relevant sources.For this assignment I have chosen JP Morgan Chase as my bank to do the research on. https://www5.fdic.gov/sdi/main.asp?formname=compareThis website may be very helpful.
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