BEAM065 Bank Management
Coursework 1 (40% of the mark for this module) Submission
deadline: 19 March. Word limit: 2,000.
This assignment consists of two options.
YOU NEED TO CHOOSE ONE OPTION ONLY (Option 1 or Option 2).
Option 1 (100 marks) – From Compustat (available through WRDS) or Orbis,
download relevant data for at least 50 banks (depository institutions), from any
country of your choice. Run at least 6 different regression models to examine
how the banks’ ROA might be affected by:
a) Credit risk
In particular, you could examine:
- The impact of non-performing loans
- The impact of loan-loss provisions
b) Lending policies
In particular, you could examine:
- The impact of lending growth
- The impact of the business model (e.g., different categories of
loans)
c) Size
- Usually, the literature considers the natural logarithm of total assets
(or market capitalisation, for listed banks) as a proxy
d) Capital structure
In particular, you could examine:
- The impact of Tier 1 ratio
- The impact of the equity multiplier
You should consider the relevant literature to justify your choice of proxy for
each variable in your methodology discussion. You can use whatever
econometric specification you deem appropriate. You can also add further
control variables.
Then, discuss whether your results are consistent with your expectations (by
comparing them with the relevant literature), and what might be driving any
unexpected result.
IMPORTANT: For your analysis, you MUST use STATA. The reference list,
tables (including notes and titles of the tables) and figures (including notes and
titles of the tables) do NOT count towards the word limit. You do NOT need an
introduction or conclusion in your report, but you can divide your report into
three different sections, one to describe briefly your methodology and data (e.g,
database used and sample selection), and one for the discussion of the results.
Suggested structure for the report:
1.1 Methodology
1.2 Data
a) What are the potential consequences of interest rates near or below zero in
terms of:
• Bank performance
• Bank risk-taking
• Bank lending
(50 marks) (max 1,000 words)
b) How can we estimate the potential impact of a new regulation on bank
shareholders, before it is actually implemented? Provide some examples
of recent academic papers that have attempted to do this, and briefly
describe their findings.
(50 marks) (max 1,000 words)
c) Describe how competition in banking markets might affect:
• Access to bank funding, and related cost, for SMEs (small-medium
enterprises)
• Economic growth (especially at the local/regional level)

(50 marks) (max 1,000 words)
d) Describe how capital requirements might affect:
• Bank performance
• Bank credit risk
(50 marks) (max 1,000 words)
You may (but do not have to) support your analysis with quantitative examples
and statistical analysis.
IMPORTANT: The reference list does NOT count towards the word limit. You do
NOT need an introduction or conclusion in your essay.
Further guidelines
This assignment requires you to focus on the concepts and theories developed in weeks 1 to 10, and
is related to the ILOs 1-3, and 5-10. You are expected to read all of the relevant core academic
material on ELE. Evidence of reading optional articles will be rewarded if it improves the quality
of your answers. The marking criteria are stated in Appendix A below.
IMPORTANT: Academic misconduct

The material you submit must be your own work and written in your own words. Where you have
used quoted material, you must make full reference to it.
You might be asked to send the data used in your analysis to the Module Leader (Dr.
Thaer Alhalabi), along with any other file that you might have used for your data analysis
(e.g., Excel file, STATA do-file or log file). Dr. Thaer Alhalabi might also ask you to explain how
you ran the regressions, either via email or during an online meeting on Teams. Further
investigation of potential academic misconduct might ensue, according to University regulations.
More information on referencing style
https://vle.exeter.ac.uk/course/view.php?id=6748§ion=2
Late Submission of Assignments
You must submit your assignment by the deadline specified. If you fail to submit on time, the
following penalties apply:
• Work submitted up to 1 hour after the deadline, which has reached the standard of the
module pass mark or above, will be subject to a penalty of 5% of the total available mark
for the coursework, down to a minimum score of the module pass mark.
• The penalty for assessed work submitted up to two weeks and without an agreed
extension is a capped mark of 50%.
• Assessed work submitted more than two weeks beyond a submission date will receive a
mark of zero.
Mitigation
• https://www.exeter.ac.uk/students/infopoints/yourinfopointservices/mitigation/
BART Submission
Online Submission Student Summary Sheet v19
Online Submission Student Handbook v19
Academic Honesty Advice for Students prior to Submission v2
Appendix A: Marking Rubric
Mark (Fail/Condon
able Fail)
Pass Merit Distinction Weighting
Marking
Criteria
<50 50-59 60-69 >70 % of total
mark
Knowledge and
Understanding
of the Subject

Gaps in
knowledge
and only
superficial
understanding
of the well-
established
principles of
area(s) of
study.
Broad
knowledge and
understanding of
material, of well-
established
principles of
area(s) of study,
and of the way in
which those
principles have
been developed.
Very good
knowledge and
understanding of
material, of
well- established
principles of
area(s) of study,
and of the way
in which those
principles have
been developed.
Very good,
detailed
knowledge and
understanding of
material, main
concepts/theories
at this level.
Awareness of the
limitation of the
knowledge, and
how this
influences any
analyses and
interpretations
based on that
knowledge.
40%
Analysis and
Interpretation
Demonstration
of logical
analysis and
critical
interpretation.

Little or no
analysis of
findings,
concepts or
theoretical
ideas;
descriptive,
simplistic and
anecdotal
and/or
incorrect
Satisfactory
application and
analysis of
findings/concepts,
perhaps with
some deviation
from theoretical
premises
Good application
and analysis of
findings/concepts
carried out in
line with
methodological
and theoretical
premises
Application and
analysis of
findings/concepts
carried out
accurately and
with high degree
of competence in
line with
methodological
and theoretical
premises
45%
Style and
Structure 1)
Clear structure,
and attention to
grammar and
spelling.
2) Use of
recommended
and other
reading
materials. 3)
Correct
academic
referencing.

Poor structure
and grammar
which is hard
to follow or
understand;
incorrectly
formatted,
with no
references or
poorly chosen
ones.

Overall structure
and organisation
is satisfactory.
Internal
coherence of the
whole is
satisfactory.
Make
consistently
sound use of
appropriate
academic
conventions and
academic honesty
Good structure
and grammar,
which is easy to
follow and
understand.
Make
consistently good
use of
appropriate
academic
conventions and
academic
honesty
Clearly
structured and
lucidly
expressed. Make
consistently
excellent use of
appropriate
academic
conventions and
academic honesty
Evidence of
further research.
Excellent range
and quality of
references to
support analysis.
15%
Total
100%