“Analysis of Liability Funding Strategies of Top Australian Banks (2017-2022)”

Section 1: Introduction

In this analysis, we will examine the funding strategies of the top four Australian banks over the period of 2017 to 2022. Specifically, we will focus on two types of banks’ liability funding and calculate the percentages of these liability sources for each of these banks. The objective is to conduct trend and peer analyses to gain insights into their funding strategies.

Section 2A: Data and Analysis

2.1 Data Collection

To begin our analysis, we need to collect annual data on the following two types of banks’ liability funding for the top four Australian banks:

1. Deposits: This includes all forms of customer deposits, such as savings accounts, term deposits, and transaction accounts.
2. Bonds and Debt Issuance: This category encompasses bonds issued by the bank and other forms of debt issuance.

You should gather annual data for these two funding sources for each of the top four Australian banks for the years 2017 to 2022. Ensure that your data is accurate and reliable.

2.2 Calculation of Percentages

Once you have collected the data, you can calculate the percentages of these liability sources for each bank for each year. The formula for calculating the percentage of a specific liability source is as follows:

Percentage of Liability Source X=Liability Source XTotal Liabilities×100Percentage of Liability Source X=Total LiabilitiesLiability Source X​×100

Where:

• Liability Source X represents either “Deposits” or “Bonds and Debt Issuance.”
• Total Liabilities is the sum of all liabilities for the bank in a given year.

Calculate these percentages for each of the top four Australian banks for each year in your dataset.

2.3 Graphical Representation

Create two line graphs to visually represent the percentages of these liability sources for each of the top four Australian banks over the 2017-2022 period. One graph should show the percentages of deposits, and the other should display the percentages of bonds and debt issuance. Label your graphs clearly, including the banks’ names, and provide a legend.

Section 2B: Trend and Peer Analysis

2.4 Trend Analysis

Once you have your graphs and data, perform a trend analysis for each of the four banks. Identify any notable trends or changes in their funding strategies over the 2017-2022 period. For example, have they become more reliant on deposits or debt issuance?

2.5 Peer Analysis

Compare the funding strategies of these banks with each other. Do they have similar patterns or significant differences? Are there any specific years or events that had a substantial impact on their funding choices?

2.6 Detailed Insights

Based on your analysis, provide detailed insights into the funding strategies of these banks. Discuss the implications of their funding choices, potential risks, and the reasons behind any observed trends. Consider economic conditions, regulatory changes, and other external factors that may have influenced their decisions.

Section 3: Conclusion

Summarize your findings and key insights into the funding strategies of the top four Australian banks over the 2017-2022 period. Discuss the significance of your analysis in understanding their financial stability and risk management. Finally, mention any potential areas for further research or analysis in this context.

Section 4: References

Include proper citations for the data sources and references used in your analysis.

This template should help you structure your essay and analysis. You can then gather the actual data, perform calculations, create graphs, and write the content based on your findings.