What might have caused the above change since 2008?

Go to the Federal Deposit Insurance Corporation Web site at www.fdic.gov and find the latest balance sheet information available for commercial banks. Under “Analysis”, select “Quarterly Banking Profile”, under the section “QBP Time Series Spreadsheets”, Click on “Balance Sheet “. This will download a file onto your computer that will contain the balance sheet information for commercial banks since 1984.
1. Calculate and compare the percent of Cash & Due from depository institutions to Total Assetsfor 2008Q2 and 2021Q2. Have banks become more conservative or aggressive in liquidity management since 2008? (Show the calculation detail)
2. Calculate the percent of Securities to Total Assets, Net Loans and Leases to Total Assets for 2008Q2 and 2021Q2. Have banks become more conservative or aggressive in asset managementsince 2008? (Show the calculation detail)
3. Calculate and compare the percent of Total bank equity capital to Total Assets for 2008Q2 and 2021Q2. Have banks become more conservative or aggressive in capital adequacy management since 2008? (Show the calculation detail) Do some online research, what is the current minimum bank capital requirementstipulated by the Fed?
4. What might have caused the above change since 2008?

Net Interest Margin and Interest Rates
Read the article https://www.stlouisfed.org/on-the-economy/2016/may/banks-more-profitable-interest-rates-high-low, and other online sources to discuss the following questions:
1. How is Net Interest Margin (NIM) measured?
2. According to the figure in the article, how has the NIM been changing with the interest rates movement in the short-term, and in the medium-long run?
3. How does your textbook explain the Gap Analysis on page 208? For traditional banks who “borrow short and lend long”, why does the “gap” tend to be negative?
4. How do you explain the inverse relationship between NIM and interest rate movement in short-term using gap analysis?
5. Given the complexity of the relationship between NIM and interest rates, how should banks manage their interest rate risk? Do some online research on banks’ management of interest rate risks, and share your findings and your views here.

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