--%>
Assignment Help - homework help

Commercial Banking Assignment

Part I

Guidelines and requirements: The questions in Part I of this assignment are based on the materials covered in Units 1 and 2. Please write a short-essay answer to each question.

Question 1

You have just been hired as a branch manager for a large bank in Hong Kong. You were told that the bank is going to open a new branch at the Island Learning Centre of the Open University of Hong Kong in Sheung Wan. The management of the bank is concerned that the new branch may not be able to attract enough customers to meet its profit projection. Your task is to recommend the various services the bank should offer initially to build an adequate customer base. The following is a list of the services the branch could offer:

  • current accounts
  • savings deposits
  • security underwriting
  • personal trust management services
  • retirement savings plans
  • venture capital loans
  • plant and equipment loans
  • automobile loans
  • residential real estate loans
  • home improvement loans.

a List five types of information you will need about the local community to help you decide which of many possible services are likely to have sufficient demand to make them profitable. Explain

your answer briefly. b Divide the possible services into two groups: those you think should be offered opening day and those you believe can be offered later as bank grows. Explain your answer. 2 FIN B381 Commercial Banking

 

Question 2

For a better understanding of banking industry, it is important to look at the environment in which commercial banks operate. Production expansion and globalization are two major forces reshaping the banking industry today. The following two questions are related to these two issues. a Describe one of the new banking services offered to customers by many local banks. Discuss the potential benefits and challenges to these banks that are brought about by the introduction of this new service. (15 marks)

b Hong Kong is an international financial centre and many foreign banks want to establish their presence in the city. In view of public welfare, should the government impose more restrictions against? the entry of foreign banks into Hong Kong? Explain the rationale behind your answer. 

Part II

Guidelines and requirements: There is only one question in this part. The question is designed to provide a platform not only to show that you know and understand the material, but that you can use it to analyse situations. Therefore, your answer will be graded on the basis of completeness, justification and presentation skill. So be sure you keep these criteria in mind as you prepare your answers. Good luck!

 

Question 3

Read the article 'Back in expansion mode' on the following pages and answer the following questions:

a List out five business areas that local banks are turning to in search of profits. Describe each business area briefly and evaluate the prospect of growth in each area critically.

b In the article, Monica Ng, Assurance Partner of PricewaterhouseCoopers Hong Kong said, 'the smaller banks are at risk of losing out to their larger counterparts.' Please explain the challenges faced by smaller banks and suggest way to overcome these challenges. 

   Related Questions in Corporate Finance

  • Q : Do expected equity flows coincide with

    Do expected equity flows coincide along with expected dividends?

    		•
  • Q : Explain value of shares is Is this

    Is this correct that the value of the shares is, the “value of the results’ capitalization” that, as per to the Institute of Accounting and Auditing (ICAC) shows “the sum of the expected future results of the company throughout a certain period

    		•
  • Q : Explain Straddle and Strangle Straddle

    Straddle & Strangle: In the case of shorting butterfly spread, it can be seen that the gains are limited. However, there exists another strategy known as straddle which produces unlimited gains. This strategy benefits when the trader expects that

    		•
  • Q : Is this possible to make money in the

    Is this possible to make money in the stock market while the quotations are going down? And what is credit sale?

    		•
  • Q : Who was the first to quantify the idea

    Who was the first to quantify the idea of Brownian motion?

    		•
  • Q : Public Finance which type of tax,

    which type of tax, direct or indirect is applicable in underdeveloped countries? Why? Show your critical areas and weaknesses.

    		•
  • Q : What is Regular meeting of day-to-day

    Regular meeting of day-to-day commitments: The estimation of WCR also helps to ensure that there is positive WC existence. This proves helpful in meeting requirements which are regular in nature such as payments of salaries, wages, rental charges etc.

    		•
  • Q : What is Regular supply of working

    Regular supply of working capital: The working capital requirement (WCR) estimation helps to ensure that the supply of raw material, which is essential to production, is uninterrupted. Therefore, the firm will be able to get sufficient credits and fun

    		•
  • Q : Discretion can distort results Discuss

    Discuss how management’s discretion in applying accounting rules can mislead investors. Provide three examples and how the discretion can distort results?

    		•
  • Q : Explain accurately value bond options

    If the model could not even find bond prices right, how could this hope to accurately value bond options?

    		•