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Santander Risk Report

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describe your bank of interest, discuss the importance of banks in the economy, their role in an economic system, and whether or not they are needed. Analyze the performance of your chosen over the last 5 years reflect on your knowledge of it and justify your choice of performance indicators. Highlight policy changes and regulations, government policies and interventions, and central bank announcements that could have affected the bank’s activities including interest rate changes etc. Aiming to either to produce three relevant charts and/or tables to enrich your analysis and try to identify trend changes. Select a bank and identify the bank risks from its annual reports, ensure you provide definitions of every risk and justification for identifying these risks, Discuss the main tools to measure and hedge against the risks you have identified. Ensure you address the limitations of the measures. You should refer to lectures, bank’s annual reports, text book, articles and other online resources for more on measures of bank risk Address the bank regulations and policies that may affect this bank’s operations. Discuss what measures (such as its investments, or performance) have allowed this bank to maintain its profitability and liquidity in the last 5 years despite macroeconomic shocks to the globe such as the pandemic, war in Ukraine, and rises in interest rates.

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February 6, 2024
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RISK REPORT Santander PLC




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, Santander Risk Report Contents

1. Executive Summary................................................................................................................................. 3
2. The Performance and Actions of banking sector during Covid-19......................................................3
2.1. Financial regulator support during COVID-19.......................................................................................................3
2.2. Santander UK performance compared to HSBC UK..............................................................................................4
Figure A................................................................................................................................................................... 4
Figure B.................................................................................................................................................................... 5
3. Bank Risks............................................................................................................................................... 6
3.1. Credit Risk.............................................................................................................................................................6
Figure C.................................................................................................................................................................... 7
3.2. Liquidity Risk.........................................................................................................................................................8
Figure D................................................................................................................................................................... 9
3.3. Reputational Risk..................................................................................................................................................9
Figure E.................................................................................................................................................................. 10
4. Risk Matrix............................................................................................................................................. 10
5. Conclusion............................................................................................................................................. 11
6. Bibliography........................................................................................................................................... 11




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