You dont need to cover every suggest topic below but should include some. Essay must have specific information
What is a bank, why do we need them in the economy?
Discuss the business model and incentive of banks (profit).
How is this consistent with the economic purpose?
How do we measure this performance and position (financial statements)
Describe and illustrate the various risks to banking in the context of the economy (money)
Relate these risks to the bank’s financial statements, where do they manifest?
How do these risks affect different types of banks differently?
Think about the 4 banks we were following (MS, WFG, M&T, BWFG) and their ratios
Relate to how the financial statements are affected
Connect financial performance to economic effect (circular flow)
Banks are supposed to take and share risks within the economy
Banks provide leverage for investment today in order to grow tomorrow
Use this paradigm of analysis on an example from the news (or hypothetical) to illustrate
Financial Crisis
COVID (policy)
Yield curve / Inflation
Current Expected Credit Loss (CECL) – change in bank regulation
SVB
NYCB