Financial analysis of the bank allows you to determine its liquidity and ability to function in modern conditions. Analyzing the performance indicators and ongoing operations, the management of the credit institution determines a long-term policy and plans further development, based on potential and actual trends.
Instructions
Step 1
Conduct a structural analysis of the balance sheet. To do this, it is necessary to draw up a table of assets, liabilities and off-balance sheet items of the bank's activities. Ungroup the investments, income, expenses and liabilities of the enterprise by type and timing. Determine the indicators of the proportion of borrowed funds and bank investments. Based on these tables, the market area is determined in which most of the bank's operations are concentrated, and the risks associated with changes in the structure of assets and liabilities.
Step 2
Prepare a bank profit and loss statement to determine commercial performance. Analyze these indicators and find out the main types of expenses and sources of income of the credit institution. Identify the operations that have the greatest impact on the bottom line. Evaluate the effectiveness of the structure of assets and liabilities and the bank's performance for the reporting period.
Step 3
Analyze the capital adequacy, which will reveal the degree of stability of the capital base and its sufficiency to cover losses from various risks. Based on the indicators of the composition of the bank's capital and assets, predict the state of capital adequacy for the future.
Step 4
Assess the bank's risks associated with non-fulfillment by counterparties of their obligations. To do this, draw up tables of loans by maturity, type and structure of the loan portfolio. Based on the data received, determine the quality of the bank's credit policy.
Step 5
Determine the risks of the credit institution, which are associated with adverse changes in exchange rates or the market value of financial instruments. Find out the degree of influence of such factors on the financial condition of the bank.
Step 6
Calculate the liquidity of the bank. Based on the data received, determine the state of the quality of liquidity management, the stability of the resource base, trends in the state of calculation, etc.
