Risk Analysis for Wells Fargo
Content
• Overview 3
• Interest Rate Risk 3
• Market Risk 4
• Credit Risk 5
• Liquidity Risk 8
• Off-Balance Sheet Risk 9
• Capital Adequacy 10
• Profitability 11
• Sovereign Risk 13
• Risk Management 14
• Conclusion 15
• Reference 15
• Overview
Wells Fargo Bank, National Association, headquarter at Sioux Falls, South Dakota, has 6332 domestic locations in 41 states, 0 locations in territories, and 37 foreign locations. Its FDIC Certificate number is 3511. It has been insured by FDIC at Jan. 1, 1934, and established at Jan. 1, 1870. Wells Fargo is belonging to the class of National Bank. Wells Fargo is a financial holding company and a bank holding company. Through its subsidiaries, it operates in three segments: Community Banking, which provides a line of financial products and services including investment, insurance and trust services for consumers and businesses; Wholesale Banking, which provides commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, and trade financing; and Wealth, Brokerage and Retirement, which provides financial planning, private banking, credit, investment management and trust. At Dec 31 2012, Wells Fargo had total assets of $1.42 trillion and total deposits of $1.00 trillion.
In this analysis report, all used data is from FDIC website and Hofstra University Mergent Online website. Used the last 5 years data from 2008 to 2012, and all ends at December to keep the data most recent. I used this period of data for the risk analysis by different types of risks of Wells Fargo.
• Interest Rate Risk
It is an important ratio for commercial banks, since all commercial banks have many relations with interest rate. To better management of interest rate risk is very helpful for commercial banks in today’s financial environment. The interest rate risk is the risk that repricing assets and
• Overview 3
• Interest Rate Risk 3
• Market Risk 4
• Credit Risk 5
• Liquidity Risk 8
• Off-Balance Sheet Risk 9
• Capital Adequacy 10
• Profitability 11
• Sovereign Risk 13
• Risk Management 14
• Conclusion 15
• Reference 15
• Overview
Wells Fargo Bank, National Association, headquarter at Sioux Falls, South Dakota, has 6332 domestic locations in 41 states, 0 locations in territories, and 37 foreign locations. Its FDIC Certificate number is 3511. It has been insured by FDIC at Jan. 1, 1934, and established at Jan. 1, 1870. Wells Fargo is belonging to the class of National Bank. Wells Fargo is a financial holding company and a bank holding company. Through its subsidiaries, it operates in three segments: Community Banking, which provides a line of financial products and services including investment, insurance and trust services for consumers and businesses; Wholesale Banking, which provides commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, and trade financing; and Wealth, Brokerage and Retirement, which provides financial planning, private banking, credit, investment management and trust. At Dec 31 2012, Wells Fargo had total assets of $1.42 trillion and total deposits of $1.00 trillion.
In this analysis report, all used data is from FDIC website and Hofstra University Mergent Online website. Used the last 5 years data from 2008 to 2012, and all ends at December to keep the data most recent. I used this period of data for the risk analysis by different types of risks of Wells Fargo.
• Interest Rate Risk
It is an important ratio for commercial banks, since all commercial banks have many relations with interest rate. To better management of interest rate risk is very helpful for commercial banks in today’s financial environment. The interest rate risk is the risk that repricing assets and