Step $1.$ Write a paragraph introduction about the aim of the assignment and the significance of the information in the assignment answers.

Step $2$: Compile a table with the following data from the three different banks that your lecturer specified:

Asset Name of bank $1$ Name of Bank $2$ Name of Bank $3$ Average

Year of bank annual report Year of bank annual report Year of bank annual report

Amount $\%$ of total assets Amount $\%$ of total assets Amount $\%$ of total assets Amount $\%$ of total assets

Cash

Trade securities

Investment securities

Loans

Other assets

Total assets

When constructing this table please note that:

$$ The annual reports of banks are normally for the total group of companies with consolidated figures and separate figures for the bank only $($parent entity$).$ Please use group figures when they are available. Otherwise, company $($bank only$)$ figures are applied.

$$ Other assets include all the assets except for cash, trade securities$,$ investment securities$,$ and loans.

Step $3$: Discuss each of the asset types contained in the table that you constructed in step $2$ by providing the following explanations:

$1.$ Cash

a$.$ The purpose and importance of the type of asset.

b$.$ The average monetary size $($as $\%$ of total assets$)$ of banks and differences between the $\%$ sizes of this asset between banks. If the differences in the $\%$ sizes of this asset between banks are significant, please try to provide possible reasons for the differences by considering information provided in the annual reports of the banks.

c$.$ The risks that the bank run due to holding$/$not holding the type of asset.

d$.$ Methods$/$instruments that banks use to hedge the risks pertaining to this type of asset.

e$.$ The income generated from the type of asset compared to the income generated from other types of assets.

$2.$ Trade securities

a$.$ The purpose and importance of the type of asset.

b$.$ The average monetary size $($as $\%$ of total assets$)$ of banks and differences between the $\%$ sizes of this asset between banks. If the differences in the $\%$ sizes of this asset between banks are significant, please try to provide possible reasons for the differences by considering information provided in the annual reports of the banks.

c$.$ The risks that the bank run due to holding$/$not holding the type of asset.

d$.$ Methods$/$instruments that banks use to hedge the risks pertaining to this type of asset.

e$.$ The income generated from the type of asset compared to the income generated from other types of assets.

$3.$ Investment securities

a$.$ The purpose and importance of the type of asset.

b$.$ The average monetary size $($as $\%$ of total assets$)$ of banks and differences between the $\%$ sizes of this asset between banks. If the differences in the $\%$ sizes of this asset between banks are significant, please try to provide possible reasons for the differences by considering information provided in the annual reports of the banks.

c$.$ The risks that the bank run due to holding$/$not holding the type of asset.

d$.$ Methods$/$instruments that banks use to hedge the risks pertaining to this type of asset.

e$.$ The income generated from the type of asset compared to the income generated from other types of assets.

$4.$ Loans

a$.$ The purpose and importance of the type of asset.

b$.$ The average monetary size $($as $\%$ of total assets$)$ of banks and differences between the $\%$ sizes of this asset between banks. If the differences in the $\%$ sizes of this asset between banks are significant, please try to provide possible reasons for the differences by considering information provided in the annual reports of the banks.

c$.$ The risks that the bank run due to holding$/$not holding the type of asset.

d$.$ Methods$/$instruments that banks use to hedge the risks pertaining to this type of asset.

e$.$ The income generated from the type of asset compared to the income generated from other types of assets.

Step $4.$ Summary$/$conclusion:Use the information contained in the table $($step $2)$ and your answers provided in step $3$ to write up a conclusion about whether the average monetary$/$percentage sizes of the different assets are optimum or whether banks can increase$/$decrease the sizes of the different assets to increase their profits without unacceptable increasing risks to the banks.