Now that the simulation is running, what are the top two to three things you are looking for in the results? Explain why you chose those two to three things.

Please reply to the following discussion and reply to the following classmates discussion.
Now that the simulation is running, what are the top two to three things you are looking for in the results? Explain why you chose those two to three things.

Submission

Our discussions are a valuable opportunity to have thoughtful conversations regarding a specific topic. You are required to provide a comprehensive initial post with a minimum of 300 words. In addition, you are required to respond substantively to the initial posts of at least two other classmates on two different days. All posts should be reflective and well written, meaning free of errors in grammar, sentence structure, and other mechanics.

And please reply to the following class mates:

“After completing the first week’s simulation it was determined that we were borrowing money from the Feds to meet our reserve requirements and this was one of the top things we wanted to eliminate this week in order to help us generate a higher net interest margin. Another focus that we will be looking for is to meet our earnings per share estimate that we placed this week in order to help raise our stock price for our bank. It is important to raise stock prices as they give you a higher valuation as a bank, with a higher valuation we are able to sell common stock in order to raise additional cash flow if necessary. Lastly, we will focus to see if we raised our overall assets and how changing our loans interest rates and leniency toward consumers has affected our overall loans we are producing.

It is important to focus on earnings as a bank because this will attract investors which in turn will give us more capital, having an accurate earnings estimate contributes to how investors react each quarter when earnings are released. Capitalizing on growth and where we can generate the highest net interest margin is our priority as a bank and we intend to work each week to improve in whichever area we lacked the previous week. I highlighted our borrowing from the Feds and believe this is a contributing to factor as to why our stock price declined in the first quarter and if we reduce the borrowing from the Feds we will have the ability to generate a higher net interest as we are not having to maintain reserves from borrowing. All of these areas combined influenced our decisions we made this week and our bank is eager to see the results to see which areas we improved on and how we can continue to improve going forward”

#2
After reviewing the simulation with my team this past week, it seems our two main focuses of improvement was how much we were borrowing from the Feds and also to meet our earnings per share estimate. One of our biggest issues last week was the amount we were borrowing from the Feds due to the new purchases of securities and also not bringing in enough income to substance that. By selling some securities that were worth more than the market value, raising interest rates, as well as making improvements for deposit accounts for our customers I believe this should make it so we will not need to borrow too much money from the feds (lesser amount/ nothing).

Another key component that my team and I were discussing this week was the importance of our earnings per share estimate. This will help raise the price of our stock, which will in turn will help us sell common stock in order to help us raise additional funds. Also, when reporting a false or far off stock price estimate this shoots your stock price down and doesn’t look as attractive to investors.

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