fb
$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

FIN3145 Global Issues In Financial Services

tag 0 Download23 Pages / 5,667 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions:

Tasks

Task 1

Discuss the reasons why the Cruickshank Report was ordered and the main findings of the report. The word count for this element should.
 
Slides 13 to 16 of the lecture notes in week 16 present some statistics for banks in the US and Europe for the period of up to 2003/2004. Discuss what you think happened to these same indicators in the subsequent years up to the present. The word count for this element should.
 
Discuss the main challenges facing the investment banking sector. The word count for this element should.

Task 2

  1. Estimates of unemployment for the upcoming year have been developed as follows:

Economy

Probability

Unemployment Rate

Worst

15%

30%

Poor

45%

18%

Good

28%

8%

Best

12%

2%

Calculate the expected unemployment rate and the standard deviation.

Building on the example of the New Bank used during the tutorials, following on from the balance sheet calculated in question 12 of the tutorial in week 14, the following additional information is provided.
  • Calculate NewBank’s Return on Assets (ROA)and Net Interest Margin (NIM) for its first month. Assume that net interest equals EBT, and that NewBank is in the 28% tax bracket.
  • Calculate NewBank’s Return on Equity (ROE)and final balance sheet including its tax liabilities. Assuming NewBank is required to establish a loan loss reserve at 0.5% of the loan value for commercial loans, how is this recorded?
  • Recalculate NewBank’s ROE and final balance sheet including its tax liabilitiesin this instance.
  • AssumingNewBank’s target ROE is 5%, how much net fee income must it generate to meet this target?
  • After making payments for three years, one of the mortgage borrowers defaults on the mortgage. NewBank immediately takes possession of the house and sells it at auctionfor $175,000. Legal fees amount to $25,000. If no loan loss reserve was established for the mortgage loans, how is this event recorded?
  1. Briefly discuss the different available sources of finance for small and medium companies (SMEs). The word count for this element should.

Task 3

In the final page there is a table containing a list of the largest Initial Public Offerings (IPOs) that have occurred so far in 2017, with the Current Price column representing the share price of March, 24th.

  1. For each of the companies calculate the Market Capitalisation at the time of IPO and now. If you had won a lottery prize of $2,275 on January 15th and decided to invest your winnings in the next available IPO and then sold your investment on the 24th of March, how much money did you make and what yearly return does that represent (Assume your broker charges $25 per transaction).
  2. The following is an extract from an article published on November, 21st 2016 on the U.S. News website: "Of all the possible 2017 IPOs, a public offering from ride-hailing giant Uber, valued at nearly $70 billion, would doubtlessly be the biggest of the year. Uber CEO Travis Kalanick has spoken of pushing back an Uber IPO for as long as possible, but a recent merger of Uber China with bitter Chinese rival Didi Chuxing could pave the way for a 2017 offering. This makes a 2017 IPO more likely since China was a huge profit suck for Uber. Still,Uber lost over $1.2 billion in the first half of 2016. "Uber needs to get expenses and losses under control quickly," says K C Ma, professor of finance at Stetson University."

Discuss the reasons for and against an investor subscribing Uber's shares if and when the company decide to seek a stock market listing. The word count for this element should.

Briefly discuss the main risks that affect the performance of banks. The word count for this element should be 300-400 words.

Task 4

A bank issues a $250,000 variable-rate, 25-year mortgagewith a nominal annual rate of 3.5%. If the required rate increases to 4.0% after the first three months, what is the impact on the interest income for the first 12 months?
 
A Bank manager is setting targets for the upcoming weeks about the amount of Savings deposits it needs to raise. The Bank's current balance sheet includes the following items:

Asset

Value

Duration
(in years)

Liability

Value

Duration
(in years)

Bonds

230,000,000

8.50

Demand Deposits

1,380,000,000

1.00

Consumer Loans

690,000,000

3.50

Saving Accounts

??

0.60

Commercial

 

 

 

 

 

Loans

1,150,000,000

5.50

 

 

 

Assuming the manager wants a duration gap of 4.00 years, what level of Saving Accounts should the bank raise? Calculate in approximate $mill and assume that any difference between assets and liabilities is held as cash (duration = 0).

Hedging products were created for commercial companies to reduce or eliminate some of the risks they face but have since been widely used by speculators as a mechanism to generate profits by taking significant risks. Explain how speculators use options in order to attempt to make large profits and the risks they face. The word count for this element should.

Task 5

  1. A bank issues a $5 million commercial mortgage with a nominal APR of 6%. The loan is fully amortized over 10 years requiring monthly payments. The bank plans on selling the loan after 4 months. If the required nominal APR increases by 65 basis points when the loan is sold, what gain or loss does the bank incur?
  2. That same bank has a differential advantage in issuing variable-rate mortgages, but does not want the interest income risk associated with such loans. The bank currently has a portfolio of $33,000,000 mortgages with an APR of prime +175 basis points, reset monthly. Prime is currently 3%. A swap has been arranged to turn the current cash flows into a fixed interest payment of 5.75% on a notional amount of $33,000,000 in return for its variable interest income. If the bank agrees to this, what interest is received and given in the first month? What if prime suddenly increased 220 basis points?
  3. A bond portfolio manager administers a $100 million portfolio. The portfolio currently has
    a duration of 6.5 years. The manager wants to shorten the duration to 5 years using T-bill futures. T-bill futures have a duration of 0.3 years and are trading at $990 (face value =$1,000). How can the fund manager achieve this objective?
  4. In 2002, following the bankruptcy of Enron, the United States introduced the Sarbanes-Oxley Act, commonly referred to as SOX. Discuss the aims, main requirements and penalties contained in the Act.  The word count for this element should be 450-550 words
Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 23 pages, 1 USD Per Page

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help (2021) Global Issues In Financial Services [Online]. Available from: https://myassignmenthelp.com/free-samples/fin3145-global-issues-in-financial-services/services-to-small-and-medium-enterprises.html
[Accessed 25 October 2021].

My Assignment Help. 'Global Issues In Financial Services' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/fin3145-global-issues-in-financial-services/services-to-small-and-medium-enterprises.html> accessed 25 October 2021.

My Assignment Help. Global Issues In Financial Services [Internet]. My Assignment Help. 2021 [cited 25 October 2021]. Available from: https://myassignmenthelp.com/free-samples/fin3145-global-issues-in-financial-services/services-to-small-and-medium-enterprises.html.


Get your urgent essay or other academic papers written by the best writers from the most reliable writing services - MyAssignmenthelp.com. We offer a wide range of writing services for essays of all genres that includes persuasive essay, compare essay and contrast essay, narrative essay, argumentative essay and many more. Students who lack the flair for writing essays can also check our repository of samples for free to learn how to write a narrative/persuasive/descriptive essay.

Latest Finance Samples

ACC204 Corporate Accounting And Reporting

Download : 0 | Pages : 5

Answer: "Impairment Loss for Cash Generating Units excluding Goodwill" Impairment Loss: - Impairment loss occurs when carrying amount of asset or cash generating unit exceeds the recoverable value of asset or cash generating unit. Then, carrying value of the asset is required to be reduced by the difference. This reduced amount will be recognized as an Impairment loss. The same statement can be described through the following formula: Impair...

Read More arrow

FIN20013 Banking Operations And Governance

Download : 0 | Pages : 9

Answers: Question 1  What is repricing gap? In using this model to evaluate interest rate risk, what is meant by rate sensitivity? Banks use repricing gap as a risk management technique that is used to evaluate the uncertainty of income accrued from the net interest income primarily attributable to interest from payments of loans and advance s less interest paid on customer deposits subject to change in interest rates. It is also th...

Read More arrow Tags: Singapore Accounting Marketing Singapore University 

FINC20018 Managerial Finance

Download : 0 | Pages : 9

Answer: Case Study 1: Financial markets From the point of view of Northwest Capital management, the process of buying treasury bonds and energy stocks is taking indirect securities. As an hedge fund manager it is the primary market which is direct market for me, while in secondary market like stocks, ETF, MF are indirect markets. The main markets where a hedge fund manager focusses on are IPO, primary dealing in debt space. The company's scop...

Read More arrow Tags: Australia Pascoe Vale Management Business Investments University of Queensland MBA 

FIN200 Corporate Finance Management

Download : 0 | Pages : 8

Answers: Answer: A In recent times, retirement arranges are essential for employees to secure their future after retirement. Moreover, defined benefit plans as well as investment choice plans are two major types of investment plans that tertiary sector employees have to invest their superannuation contributions in an appropriate manner. These plans are mainly required for employees because of workers do not have work securities for their whol...

Read More arrow Tags: Australia Ashfield Management Business and Financial management in Aged Service University of Sydney MBA 

FIAC214 Financial Accounting

Download : 0 | Pages : 5

Answer: Introduction  About the company  Domino’s Pizza is an international company with its base in the United States and is the second largest food chain across the world. We are studying the annual report of the year 2016 according to which the company has 13800 stores in over 85 countries (Pizza 2016). The company operates as a franchise model and also sells pizza through company owned stores. The majority revenue comes f...

Read More arrow
Next

5% Cashback

On APP - grab it while it lasts!

Download app now

*Offer eligible for first 3 orders ordered through app!

ribbon
callback request mobile
Have any Query?