LOAN ANALYSIS
For this assignment, write a 5–10 page report comparing your
banking company JP Morgan Chase Bank to a peer group of large banks. The large
banks are defined as institutions with more than $10 billion in total assets.
Loan Portfolio Data
Visit JP Morgan Chase Bank Web site and look for both
corporate and small business services, lending in particular. Read everything
you can about the instruments offered to both the large business and small
business borrower. Note: If you do not know the URL, use a search engine of
your choice to find it.
Analysis
For your analysis consider the following questions:
What types of
short-term credit does the lender offer the small business customer?
What types of
long-term products are available for the small business customer?
What types of
short-term credit does the institution offer the corporate customer? What types
of long-term products are available?
What types of
loans does the lender offer individuals and families?
What types of short
term loans does the lender offer individuals and families? What types of
long-term products are available?
What do you see
related to syndicated loans?
Using the chart function in Excel and data obtained from the
banking company’s balance sheet, create pie charts for at least two years
illustrating the banking company’s loan portfolio. Pay attention to the
following questions:
Has the
composition of the loan portfolio changed over time?
Can you make any
inferences concerning credit risk and/or interest rate risk exposure?
Then use your pie charts to answer the question—How does the
bank’s loan portfolio compare to other very large banks (peer group)?
Based on your information, analysis, and pie charts, write
your report (including graphics).
Inferences for the Industry
Based on the loan portfolio analysis for this company, and
bank management theory, as covered in course readings and research, what
strategies and recommendations can you offer for managing loan portfolios and
bank liquidity? Provide support your position from relevant sources.
The company that i have chosen is JP Morgan Chase Bank
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