FIN3701B Corporate Finance

Considering the greed and unethical behaviour of some bankers which impacted the reputation of banks during Global Financial Crisis and the recent advances in information and digital technologies, if you want to be financial services provider in the new age, please name and elaborate on three (3) key imperatives that you think you must address and manage well in order to be successful in providing financial services in the new age. .

 

(a) Assess and explain why capital management for banks is important.

(b) If all Basel Capital Accords are abolished, what do you think will be the likely developments in the banking and finance sector?

 

Compare and analyse the difference between price stability and financial stability. Please elaborate in terms of their meaning and purpose, key party (or parties) responsible and policy tools and measures used to achieve them.

 

Assuming you are the policy maker in charge of the financial markets in a developing country. Your country has enjoyed years of good economic growth and the people now have accumulated some amount of personal savings. Naturally, your people are starting to look for more investment instruments beyond what is currently available – mainly bank deposits and government bonds.

 

Also, as part of your plan to grow your financial markets, you intend to allow entries of the more advanced foreign financial institutions into your financial markets and you are aware these foreign financial institutions will introduce and sell various innovative and complex investment products to the customers including your people. What is the package of policy initiatives or measures you think you should implement in order to protect the interest of your people