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BFF2401 Commercial Banking and Finance
Individual Assignment
Semester 1, 2024
Due date: Tuesday 30th April 2024, 23:55
This individual assessment task is designed to test a student’s achievement of learning
objectives 1–6. The total mark is 50 marks (weight: 30% of total assessment). Word limit:
2,000 words (±10%), excluding tables, graphs and references.
*****
TOPIC: Essay on banks’ profitability, risk management and funding strategies
Question 1 (6 marks, ~400 words):
“A commercial bank’s long-term ultimate goal is to maximise its shareholders’ wealth.”
Evaluate the above statement with specific real-life examples. Your answer must discuss two
(2) common conflicts of interest between shareholders and other stakeholders in a
commercial bank setting.
Question 2 (28 marks, ~700 words):
(A) Find annual (yearly) bank data to calculate the annual Return on Assets (ROA),
Return on Equity (ROE), Leverage Multiplier (LM), and Credit Risk Ratio (CRR)
for each of the top four Australian banks for the 2017-2023 period. Generate four (4)
line graphs (one for ROA, one for ROE, one for LM, and one for CRR). (16 marks)
(B) Conduct peer and trend analyses based on each of your graphs. Your analyses must be
supported with specific real-life evidence, such as examples of these banks’ investment
approaches, credit risk management, cost controls, funding/financing strategies, and
other market-wide factors. (12 marks)
NOTE: All tables of original dollar figures, formulas/workings and calculated
percentages/ratios, as well as four (4) line graphs, must be presented in Part 2A. Your
graphs must be fully labelled and professionally displayed.
Question 3 (12 marks, ~600 words):
In light of the current economic slowdown, interest rate environment and ongoing regulatory
developments, forecast how Australian banks’ ROE, risk exposures, and funding strategies
will change in the next 12-24 months. Provide strong reasons for your forecast.
Introduction and Conclusion (4 marks): Approximately 300 words are recommended for
introduction and conclusion together.
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• Suggested data source for Question 2: Banks’ annual reports published on their
websites.
• Required format: 1.5-line spacing and 12-point font. Subheadings must be used to
separate the three questions and different sections.
• Total marks: Question 1 (6 marks) + Question 2 (28 marks) + Question 3 (12 marks) +
Introduction and Conclusion (4 marks) = 50 marks.
• Possible deductions: Referencing and/or formatting issues (deduction of up to 3
marks); Late penalty (deduction of 5 marks per calendar day late); Turnitin percentage
above 20% (depending on nature of similarity).

Useful suggestions:
1. Your tutor will facilitate discussion on the assignment topic in Week 7 tutorials.
However, you should get started much earlier by reading the relevant materials, planning
your essay, extracting the required data from banks’ annual reports, etc. All questions
related to the assignment should be sent to your tutor as the first point of contact (via e-
mail or during consultation); alternatively, you are encouraged to post your questions on
the General Discussion Board.
2. The focus of the assignment is on the following topics: Topic 1 (Introduction), Topic 2
(Bank Performance), Topic 5 (Liabilities) and Topic 7 (Credit Risk) (and relevant
textbook chapters). Students should also expand their research outside the classroom
materials to cover contemporary issues such as the current economic and social
landscape, interest rate changes, and recent regulatory developments.
3. Formulas for ROA, ROE, LM and CRR can be found in Week 2 seminar slides (Bank
Performance, slides 34 and 53). More examples of credit risk measures are from Week 7
seminar slides (Credit Risk, slide 21). You can choose ONE measure of CRR for this
assignment.
4. The banks’ annual reports contain the required data for Part 2A and several specific
examples needed to support the peer and trend analyses in Part 2B.
5. Ensure to use Group (Consolidated) data to reflect the overall entity’s performance. All
dollar figures, relevant formulas/workings, and calculated percentages/ratios must be
tabulated and displayed in Part 2A of your essay (an appendix is NOT required).
6. Note that the questions require you to find annual data and calculate the four ratios. That
means you must show the original dollar figures (for the numerator and denominator), all
formulas/workings and the calculated percentages or ratios in your tables. If you simply
use pre-calculated ratios copied from a source, you will earn lower marks.
7. You should use Excel to construct the four (4) line graphs, then copy and paste these
graphs and display them professionally in Part 2A (underneath your data tables). An
example of a line graph can be found on slide 32 of Week 2 seminar.
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8. For this assignment, you might want to have around 5-7 references. These are in
addition to the banks' annual reports which you may use to obtain figures and insights
into your analysis.
9. You should utilise the pre-submission checklist and marking criteria (detailed on
pages 6-8 of this document) to ensure all the requirements of the task have been met.

Other suggested readings:
https://www.iese.edu/insight/articles/shareholder-vs-stakeholder-corporate-governance/
https://www.rba.gov.au/publications/fsr/2023/oct/
https://www.rba.gov.au/publications/fsr/2023/oct/focus-topic-an-update-on-fixed-rate-
borrowers.html
https://www.rba.gov.au/publications/bulletin/2023/sep/financial-stability-risks-from-
commercial-real-estate.html

Instructions to students
You are required to retain a copy of the assignment until results are finalised. Any query by
email must be sent from your Monash student email address. Any other email addresses will
not be accepted.
Faculty style guide
Work submitted for this assessment must follow the ESSAY style as outlined here.
Submission date and time
The due date of the assignment is Tuesday 30th April 2024, before 23:55 (Week 9).
All assignments must be submitted online via Turnitin. The submission link can be accessed
from Week 9’s Own Time section or from the Assessments tab.
Submissions via e-mail will NOT be accepted.
Online Turnitin submission:
• Please submit ONE .docx file (other file formats may not be compatible for Turnitin).
The name of your .docx file should conform to the following format:
S12024 – Your First name and Last name and Student ID – Tutorial day and time –
Your tutor’s First name and Last name.
For example: S12024 – Jane Smith 1234567 – Wednesday 5PM – Xing Yan
• You must also include these details (your full name, student ID, tutorial time, and
your tutor’s name) on the first page of your assignment file.
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• Please DO NOT include any assignment cover-sheet as it may bias the Turnitin
similarity percentage.
• Ensure to click on the SUBMIT ASSIGNMENT button and accept the student
statement to finalise your submission before the due date. Ensure the task status is
recorded as “Submitted for Grading”. Assignments left in draft mode will not be
graded.
TURNITIN: A Turnitin similarity report of below 20% is acceptable, anything above will be
investigated, penalised, or failed depending on the nature of similarity. Note that you can
replace (re-upload) your file only when it is in draft mode. Once your file has been formally
submitted, the system will not allow any further changes.
Students who use Apple MacBook to prepare their assignment must convert their final
.pages file to .docx before submission. Otherwise, pages. files cannot be read by Turnitin and
will not be accepted for grading.
Conditions for the use of generative artificial intelligence (AI)
Generative AI tools are restricted for certain functions in this assessment task. ChatGPT or
other AI tools may be used for study purposes and to learn about your topic, but you may
NOT include any AI-generated materials in the final submission. Copying and pasting AI-
generated text (and then editing) is NOT permitted. Any use of generative AI must be
appropriately acknowledged (see Learn HQ).
IMPORTANT: It is a student’s responsibility to fact-check and critically evaluate AI tools’
trustworthiness. These tools can compromise your privacy, security, creativity, intellectual
abilities, and should be used carefully.
Acknowledgement of AI use
If generative AI was used, students must include the following paragraph on the first page of
their assignment file.
“I acknowledge the use of to generate materials for
background research and self-study in the drafting of this assessment. No content generated
by AI technologies has been presented as my own work.”
Academic integrity
In order to ensure the academic integrity of your submission and to deter others from copying
your work, your submission may be processed by text matching software such as Turnitin.
For additional information, please refer to the University's Student Academic Integrity Policy
and read the detailed guidance on How to Use Turnitin.
Serious cases of academic misconduct may be reported to the University.
Referencing requirements
To build your skills in citing and referencing, and using different referencing styles, see the
online resources Citing and Referencing Tutorial. In this unit you are required to use the APA
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referencing style for written reports. You can get more information about using the APA
reference style from the Monash Library Resource.
Estimated return date
Students can expect to receive feedback on this assessment within two weeks of submission.
Applications for extension of time (special consideration)
Information on eligibility and how to apply for an extension on your assignment can be found
here: https://www.monash.edu/students/admin/assessments/extensions-special-consideration
Penalty for late submission
Unless an extension or special consideration has been granted, or otherwise specified in the
learning management system, students who submit an assessment task after the due date will
receive a late-submission penalty of 10 per cent of the available marks in that task. A further
penalty of 10 per cent of the available marks will be applied for each additional day (24-hour
period), or part thereof, the assessment task is overdue.
LATE submission: Late assignments must also be submitted via the same Turnitin link. Late
penalties are based on the submission time recorded on Moodle. Tasks submitted more than
seven days after the due date will receive a mark of zero for that task. For further details,
please refer to Monash University Marking and Feedback Procedure.
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BFF2401 Commercial Banking and Finance
Individual Assignment - Semester 1, 2024
Word limit: 2,000 words (±10%), excluding tables, graphs and references.

Pre-Submission Checklist

Essay on banks’ profitability, risk management and funding strategies Marks
Introduction and Conclusion 4
Q1 “A commercial bank’s long-term ultimate goal is to maximise its shareholders’ wealth.”
Evaluate the above statement with specific real-life examples. Your answer must discuss
two (2) common conflicts of interest between shareholders and other stakeholders in a
commercial bank setting.
Guide:
✓ Evaluate the statement regarding the importance of maximising value for shareholders
versus other stakeholders in a commercial banking setting.
✓ Ensure to include examples of two (2) conflicts of interest between shareholders and
other stakeholders.

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Q2 A. Find annual (yearly) bank data to calculate the annual Return on Assets (ROA), Return on
Equity (ROE), Leverage Multiplier (LM), and Credit Risk Ratio (CRR) for each of the
top four Australian banks for the 2017-2023 period. Generate four (4) line graphs (one for
ROA, one for ROE, one for LM, and one for CRR).
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B. Conduct peer and trend analyses based on each of your graphs. Your analyses must be
supported with specific real-life evidence, such as examples of these banks’ investment
approaches, credit risk management, cost controls, funding/financing strategies, and other
market-wide factors.
NOTE: All tables of original dollar figures, formulas/workings and calculated percentages/
ratios, as well as four (4) line graphs, must be presented in Part 2A. Your graphs must be
fully labelled and professionally displayed.
Guide:
✓ Table(s) of raw $ data (extracted from annual reports), relevant formulas/workings and
calculated ratios/percentages must be shown in Part 2A.
✓ Four (4) well-labelled line graphs for the required number of years and banks must be
placed underneath the data table(s) in Part 2A.
✓ Detailed and valid trend analysis and peer analysis for each of the four ratios, supported
by specific examples of banks’ investment approaches, credit risk management, cost
controls, funding/financing strategies, and other market-wide factors.

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Q3 In light of the current economic slowdown, interest rate environment and ongoing
regulatory developments, forecast how Australian banks’ ROE, risk exposures, and funding
strategies will change in the next 12-24 months. Provide strong reasons for your forecast.
Guide:
✓ You must provide a forecast on future movements of Australian banks’ ROE, risk
exposures, and funding strategies.
✓ Marks are awarded based on relevance, logical reasoning, in-depth elaboration and
strong evidence-based arguments supporting your forecast.

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TOTAL MARKS: 50
POSSIBLE DEDUCTIONS
---
---
---
Referencing and/or formatting issues (up to 3 marks)
Late deduction (5 marks per calendar day late)
Turnitin similarity over 20% (depending on nature of similarity)
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Marking criteria
Criterion HD (80-100%) D (70-79%)

C (60-69%) P (50-59%) N (0-49%)
Literature and evidence base
(Citing and referencing)
Response makes
effective use of a
wide range of
relevant, credible and
reliable sources to
inform the argument
throughout.
Most points in the
argument are
informed by relevant,
credible and reliable
literature.

All key points,
and some
additional ideas
are supported by
relevant, credible
sources. Some
ideas do not have
any appropriate
citations.

Key points in the
response are
supported by
relevant, credible
sources. Other
ideas need further
referencing.

Most points in the
response lack
credible, relevant
or reliable
evidence to
support them.

Knowledge of topic The response
demonstrates
insight, awareness
and understanding
of deeper and more
subtle aspects of the
topic. Ability to
consider topic in
the broader context
of the discipline.

There is evidence of
an awareness and
understanding of
deeper and more
subtle aspects of the
topic.
The response
demonstrates
sound
knowledge of
principles and
concepts.
Knowledge of
principles and
concepts is at
least adequate
to communicate
intelligently in
the topic and to
serve as a
basis for further
study.
There is scant
knowledge of
principles and
concepts.
Articulation of argument The response
demonstrates strong
evidence of
originality and
independent thought.

There is evidence of
originality and
independent thought.
The argument is
well-reasoned
based on broad
evidence.
The argument is
sound based on
evidence.
There is very little
evidence of ability
of construct
coherent
argument.
Analytical and evaluative
skills
The response
demonstrates highly
developed analytical
and evaluative
skills.

There is clear
evidence of
analytical and
evaluative skills.
There is
evidence of
analytical and
evaluative
skills.
There is some
evidence of
analytical and
evaluative skills.
There is very little
evidence of
analytical and
evaluative skills.
Structure The response is
effectively structured
at each level (whole
document, sections
and paragraphs).
The response
includes appropriate
sections and clear
paragraphs each with
their own focus.
The response
includes
appropriate
sections.
A basic attempt to
structure the
response into
sections is
evident.
The information is
jumbled and lacks
structure.


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Style and formatting The response has an
academic tone.

Formatting meets all
stated requirements.
The response mostly
has an academic tone,
but lapses into
informality in a few
places.

Formatting is mostly
consistent with stated
requirements.
The tone of the
response changes
frequently
between sections,
with some
academic phrasing
and some
informality.

Formatting is
largely
appropriate in
some sections, but
there is
inconsistency
across the
document.
The tone of the
response is
academic in
places, but with
numerous lapses
into informality.

Basic formatting
is consistent with
requirements, but
several details
have been
overlooked.
The tone of the
response is casual
and informal.

Formatting is
inconsistent with
most
requirements.


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