assignment concerns a commercial bank

Banking and Financial Markets 2021/22

Refer / defer assignment 1

This assignment concerns a commercial bank (National Australia Bank) and an insurance company (Zurich Insurance Group), and you must support your answers to the questions below with relevant data taken from their reports and accounts.

  1. Compare the latest balance sheet structures of National Australia Bank and Zurich Insurance Group.
  2. Analyse how the differences in the roles of the two types of organisation are reflected in the differences in the structure of their balance sheets.
  3. For this part of the assignment, you need to investigate capital adequacy in relation to National Australia Bank only:

 

(i)    Justify the use of two appropriate ratios to measure the bank’s capital         adequacy.

 

(ii)   Compare and contrast how the bank’s capital adequacy has varied over the last five years.

 

 

 

Assignment Guidance Notes

Part a

To obtain the material that you need, use either:

The balance sheets from the companies’ latest annual reports or the companies’ balance sheet information from Bloomberg.

Use pie charts to compare and contrast the companies’ holdings of different assets and liabilities.

 

Part b

Explain why National Australia Bank holds the different types of assets and liabilities shown in its balance sheet, why it holds them in the proportions shown and how, and why, they differ from those held by Zurich Insurance Group.

 

Part c

(i)         You will need to research the different ways that capital adequacy can be measured in a commercial bank. You will then need to justify the ratios that you use by emphasising their advantages, recognising any limitations and      using supporting references.

 

(ii)        Use the two ratios to compare and contrast how capital adequacy has varied        over the last five years. This part of your answer must be supported with the             use of relevant data from Bloomberg or from the bank’s last five years’ reports    and accounts. You should include graphs based on the use of this data.

 

 

Please note the following important points:

  • Word limit: 2000 words. Adding on the 10% leeway allowed by the university, this means that you can go up to a maximum of 2200 words. Any words in excess of 2200 will not be assessed.

 

  • The word limit does not include references, your bibliography or any appendices.

 

  • The word-count must be clearly marked either at the beginning or end of your answer.

 

  • Please do not include your name in a header or footer.

 

  • Your deadlines for all your coursework can be accessed via Assessment Diary.  Please ensure you check this and you know when your submission is due.

 

  • Sheffield Business School operates a deadline time of 3:00pm for all coursework submissions.  Submissions should be online via the Blackboard submission point.  Please be aware that if you do not submit via the Blackboard submission point it will be deemed a non-submission and therefore receive a mark of zero.

 

  • If you submit work after an assessment deadline without an authorised extension but within 24 hours (excluding the weekend period) of the original submission time you will receive either a capped mark at the minimum pass mark or the full uncapped mark for your work, whichever is the lower. If you submit work after this period you will not receive a mark for your work but you will receive feedback comments from your tutor.

 

  • A ‘final copy’ electronic version of your assignment should also be submitted prior to the deadline via Turnitin. If this is not done your assignment will be deemed as being late.

 

  • Several days before the deadline, you are advised to submit one draft submission of your assignment to TurnitinUK to check that there are no problems with the originality of your work.

 

  • Late submission, plagiarism and cheating will be dealt with under standard University regulations, which are available via MyHallam.

 

 

Criteria and weighting 0-39%

Work does not meet the assessment criteria

40-49%

Work does not meet the assessment criteria

50-59%

Satisfactory work

60-69%

Good quality work

70-79%

Excellent work

80%-100%

Outstanding work

Comparison of the balance sheet structures of the bank and the life insurance company.

 

20 Marks

 

No use of pie charts and/or no comparison of the balance sheet structures. Incorrect use of pie charts and/or no clear comparison of the balance sheet structures. Correct but limited comparison of the balance sheet structures. Pie charts clear but some of the key assets/liabilities not included. Clear and correct comparison of the balance sheet structures. Very clear pie charts and all of the key assets / liabilities included. Excellent comparison of the balance sheet structures. Pie charts include all of the key assets / liabilities and are extremely clear. Outstanding comparison of the balance sheet structures. Pie charts include all of the key assets / liabilities and are extremely clear.
Analysis of differences between the balance sheet structures of the bank and the life insurance company.

 

40 Marks

Inadequate, inaccurate and confused use of the terms, concepts and relationships.

 

 

 

 

No use of supporting financial information.

 

 

No use of relevant supporting references.

 

Inadequate, inaccurate and confused use of the terms, concepts and relationships.

 

 

 

 

Incorrect use of supporting financial information.

 

 

Inadequate use of relevant supporting references.

 

Correct but limited analysis of how the differences in the roles of a bank and a life insurance company are reflected in their balance sheets.

 

Sound but still limited use of supporting financial information.

Sound use of relevant supporting references.

Clear and correct analysis of how the differences in the roles of a bank and a life insurance company are reflected in their balance sheets.

 

Good use of relevant supporting financial information.

Good use of relevant supporting references.

Excellent analysis of how the differences in the roles of a bank and a life insurance company are reflected in their balance sheets.

 

 

Excellent use of relevant supporting financial information.

 

Excellent use of relevant supporting references.

Outstanding analysis of how the differences in the roles of a bank and a life insurance company are reflected in their balance sheets.

 

 

Comprehensive use of relevant supporting financial information.

 

Comprehensive use of relevant supporting references.

Justification for the use of appropriate ratios.

 

 

20 Marks

No appropriate justification.

 

 

 

No consideration of their advantages and possible limitations.

 

No use of relevant supporting references.

Incomplete, confused, and/or inappropriate justification.

 

Little or no consideration of their advantages and possible limitations.

 

Little or no use of relevant supporting references.

 

Correct and sound justification for the use of appropriate ratios.

Some sound consideration of their advantages and possible limitations.

 

Some sound use of relevant supporting references.

Correct and detailed justification for the use of appropriate ratios.

Good consideration of their advantages and possible limitations.

 

Good use of relevant supporting references.

Excellent justification for the use of appropriate ratios.

 

Excellent consideration of their advantages and possible limitations.

 

Excellent use of relevant supporting references.

Full and detailed justification for the use of appropriate ratios.

Comprehensive consideration of their advantages and possible limitations.

 

Comprehensive use of relevant supporting references.

Comparing and contrasting how capital adequacy has varied over the last five years.

 

10 Marks

No use of supporting financial information / graphs. Incomplete, confused, and/or inappropriate use of supporting financial information / graphs. Sound use of supporting financial information / graphs. Some aspects not as clear as they could be. Good use of supporting financial information / graphs. All aspects clear and correct. Excellent use of supporting financial information / graphs. Professional presentation with no errors. Outstanding use of supporting financial information / graphs. Professional presentation with no errors.
Presentation

 

10 Marks

Extremely confused and unclear.

 

No referencing / bibliography.

Confused and unclear.

 

 

No referencing / bibliography.

 

Clear but with some errors.

 

Some errors in referencing / bibliography.

Clear with almost no errors in exposition.

Correct and complete referencing / bibliography.

Clear and professional presentation. Clear and professional in all respects