The Chief Executive Officer of Total Caribbean Solutions Commercial Bank (TCSCB) operating in the Caribbean has asked his team of Charted Financial Analysts to conduct a critical assessment of the entitys financial statements to ascertain its financial health in preparing the bank for an assessment by the regulator of Commercial Banks. The team is asked to asses the banks asset quality, capital adequacy, earnings, liquidity risk, sensitivity to market risk and the strength of its Board and Management oversight function. The financial statements and indicators below should aid in the assessment as well as the notes provided. You should analyze the commercial banks performance as reflected in the financial statements below. Your analysis should include but not be limited to the following

Section A 1. Economics Analysis (Macro or Micro Analysis) (5marks) a. An analysis of the both the macro and micro economic environment in which the commercial bank is currently operating. You analysis should include but not limited to the direction of economic growth, inflation, unemployment rate etc. Provide a forecast of how these economic variables will impact the bank in the near future? 2. Financial Analysis (10mark) a. Balance Sheet Review b. Income Statement Review/Profitability Assessments c. Ratio Analysis (Capital Adequacy, Asset Quality, Liquidity, Profitability, Leverage etc.) 3. Assessment of the general condition of the bank and recommendation to senior management (10marks) Important Notes * In the past the bank has been plagued by poor underwriting practices and weak * The bank has hired several new loan officers to handle problem credits from the . Up until nine months ago the bank has no internal loan review function. credit administration standards. past Loan policy does not establish guidelines for portfolio mix by loan type The regulatory requires require primary ratio of 9% and RWCA of 13% * * The bank introduced CD promotions in 2015 and 2016. While both promotions raised funds, management anticipates that upon maturity in September 2017 40% (40billion) of the balance will run off The bank's parent company continues to reduce its cash account which will most likely be depleted in only two years. . Section A 1. Economics Analysis (Macro or Micro Analysis) (5marks) a. An analysis of the both the macro and micro economic environment in which the commercial bank is currently operating. You analysis should include but not limited to the direction of economic growth, inflation, unemployment rate etc. Provide a forecast of how these economic variables will impact the bank in the near future? 2. Financial Analysis (10mark) a. Balance Sheet Review b. Income Statement Review/Profitability Assessments c. Ratio Analysis (Capital Adequacy, Asset Quality, Liquidity, Profitability, Leverage etc.) 3. Assessment of the general condition of the bank and recommendation to senior management (10marks) Important Notes * In the past the bank has been plagued by poor underwriting practices and weak * The bank has hired several new loan officers to handle problem credits from the . Up until nine months ago the bank has no internal loan review function. credit administration standards. past Loan policy does not establish guidelines for portfolio mix by loan type The regulatory requires require primary ratio of 9% and RWCA of 13% * * The bank introduced CD promotions in 2015 and 2016. While both promotions raised funds, management anticipates that upon maturity in September 2017 40% (40billion) of the balance will run off The bank's parent company continues to reduce its cash account which will most likely be depleted in only two years