Analytics mindset Bank investment portfolios

Part $3$: Interpret and share the results with stakeholders

Assume that you are a data analyst for the Federal Reserve. You have been asked to prepare an oral or written presentation $($as directed by your instructor$),$ accompanied by the visualizations you have prepared for the Federal Reserve Board to help board members answer the following questions:

$1.$ What are the trends in the average amount of HTM and AFS investments held during the sample period?

$2.$ What are the trends in the composition of banks$$ investment portfolios during the sample period? In particular, how did the average HTM percentage change during the sample period?

$3.$ What are the trends at the individual bank level in the change in the HTM percentage of investments held for large banks from $2013$ to $2018($the period after which the change in regulation took place$)?$

$4.$ For the three banks that had the biggest increase in the HTM percentage from $2013$ to $2018,$ name these banks and describe how increases or decreases in HTM and AFS investments held contributed to the shift. Which large banks $($if any$)$ shifted their investment portfolios away from HTM investments during that time period?

$5.$ What are the trends in the level of volatility for all banks of the T$1$R and TCR capital ratios from $2009$ to $2018?$ What are the trends in the level of volatility for large and small banks for the same capital ratios for the same time period?

$6.$ One of the central goals of Basel III is to strengthen bank liquidity. Has the Federal Reserve Board$$s decision to include AOCI in the calculation of regulatory capital for larger banks advanced this goal? Do you think extending this requirement to smaller banks would improve liquidity in the banking sector?

$7.$ Banks had expressed concern that including AOCI in the calculation of regulatory capital would increase the volatility of regulatory capital. How have those concerns played out over the past five years?