FINANCIAL ANALYSIS

Risk Regulation and Compliance

Contents

Introduction1

Standard Chartered Bank1

Hypotheses2

Total loans-to-deposit ratio3

Overall Index3

Net interest margin3

Operating cost-to-income ratio4

Return on assets4

Return on equity4

Overview of the Basel Committee on Banking Supervision5

Data Description6

F-tests9

T-tests9

OLS Regressions10

Standard Chartered Bank11

City Bank Ltd.11

Conclusion12

Risk Regulation and Compliance

Introduction

The economy as whole, there is a crucial role of the financial stability even at the crisis period. As the numbers of financial institutions are increasing, they are become more active in more than two continents or countries. As a result, the financial stability has become more important for the economy.

In recent years, the importance of financial stability has been increased because of the systemic risk and the stability issues and they were needed to address. Many of the researches have been conducted on the issues of stability and the systemic risk in both at the level of institution and the academic world. As a result, the European Systemic Risk Board (ESRB) established as a new specialized institution. There is a vital role of the quality of statistics because the macro-prudential's success is dependent on that information (Mathieson et al. 2001, pp.03-24).

In this study, these performance indicators are examined; total loans-to-deposit ratio, net interest margin, operating cost-to-income ratio, return on assets and return on equity. The objective of this study is to explore the difference in the performance of the Standard Chartered Bank in terms of the averages and standard deviations of the selected indicators for prudential risk management and profitability and the responsiveness of these performance indicators to changes in the BCP is statistically similar across the Standard Chartered Bank.

Standard Chartered Bank

Standard Chartered is a multinational bank. It's headquartered in London, United Kingdom. It has been engaged in providing financial services. Its branches are almost 1,700 including its outlets around the world where it operates its network. The name of the Standard Chartered Bank has come from the mergers of banks. The “Standard” came from the Standard Bank of British South Africa and the “Chartered” term came from the Chartered Bank of China, India and Australia. The employees of Standard Chartered Bank are 87,000 across more than the 70 countries in the world. It has been working as the institutional banker as well as the operations in consumers, treasury services and corporations. Being a UK based bank, the overall profit of the Standard Chartered Bank comes from the Middle East, Asia and Africa.

This bank is primary listed on the LSE (London Stock Exchange). Standard Chartered Bank is also a part of the FTSE 100 Index (Dziobek et al. 1998, pp.02-12).

It represents the 13th largest of any company that is listed on the London Stock Exchange as it had the capitalization of market with the $33 billion and it has reported in the year of 2011. Then the Standard Chartered Bank is also having secondary listing on the Stock Exchange of Hong Kong and the National Stock Exchange of India. The largest shareholder of the Standard Chartered Bank is the Government of Singapore.

Hypotheses

Ho1: There is no significant difference in the performance of the Standard Chartered ...