Bank risk management plan uses derivatives

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Reference no: EM131557056

Assignment: Select a Bank

Use the Internet to research either TD Bank or Wells Fargo.

Write four to five (4-5) page paper in which you:

1. Determine what your selected organization would need to take into account when managing interest rate risk and the related impact it may have to business performance.

  1. Examine how the bank's risk management plan uses derivatives. If they don't currently use derivatives, then assess whether or not this can be a valuable tool for them. Provide support for your rationale.
  2. Examine how the bank's risk management plan uses other hedging tools. If the bank does not currently use any of them, then assess whether or not these can be valuable tools for it. Provide support for your rationale.

4. Propose a major investment for the organization you selected. Support your recommendation with net present value, pertinent financial ratios, and break-even analysis.

5. Propose ways that time value analysis would help your selected organization make sound management decisions. Use specific examples to illustrate your response.

  1. Assess the current liquidity position of the bank, suggesting improvements needed or ways the bank can leverage its position. Provide support for your rationale.
  2. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Reference no: EM131557056

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