Assignment task:
Section 1:
1. In the last two years, a privately owned bank is experiencing a deterioration of the loan portfolio (delinquency in portfolio growth), deterioration in the value of investments, liquidity problems, growth of assets received in dation of payment, among others. Given the above, the margin or solvency indicator has been reduced from 9% to 5%, which puts the entity in serious trouble with the banking regulatory authorities. Faced with this serious problem, what alternatives does the bank have to solve the deficiency in the aforementioned index?
2. How does the Securitization of Mortgage Portfolios (Securitization) help the liquidity of banking entities and why were they one of the causes of the financial crisis of 2007 - 2008?
Section 2:
1) What is risk management in banking and what are the different types of risk that banks face (Two pages).
2) What is the solvency risk in a bank and how is the bank solvency indicator measured according to the latest provisions of the Basel Agreement. Max two pages.
3)
a. Select the financial information (Balance Sheet and Income Statement) of a US bank as of 2023 and 2022 or the most recent.
b. Calculate a financial indicator of liquidity, efficiency, credit quality, solvency and profitability.
c. In accordance with A and B above, make a brief analysis of the situation of the selected bank during those years.