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.