--%>
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 : Earnings management What do you mean by

    What do you mean by Earnings management and what are their actions and activities?

    		•
  • 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 : Which taxes do I have to use for

    Which taxes do I have to utilize when calculating Free Cash Flow (FCF) – is this the medium tax rate or the marginal tax rate of the leveraged company?

    		•
  • Q : Convertible Bonds-Corporate Bonds State

    State the term Convertible Bonds in Corporate Bonds?

    		•
  • Q : Problem on optimal capital structure

    XYZ Company has debt/assets ratio 50%, that is too high and it must be at 45% to be optimal. This debt reduction must also reduce the bankruptcy costs by $30 million. At present, XYZ has 5 million shares of common stock selling at $50 each. The tax rate of XYZ is 30%.

    		•
  • Q : Problem on annual mortgage payment You

    You just took out a variable-rate mortgage on your new home. The mortgage value is $100,000, the term is 30 years, and initially the interest rate is 8%. The interest rate is fixed for 5 years, after which the time rate will be adjusted according to the prevailing rat

    		•
  • Q : MIRR & IRR Projects Answer using

    Answer using Microsoft Word and your answer should be between 100 and 150 words Question1. Identify the major

    		•
  • Q : State Transition Management Transition

    Transition Management: It is a financial service accessible to institutional investors who require making significant modifications to their portfolios, like merging, selling, or substantially restructuring them. This procedure can expose investors to

    		•
  • Q : Problem on leveraged beta AB

    AB Restaurants has debt/equity ratio .25, and its leveraged beta is 1.5. Its tax rate is 30%, and its cost of equity is 15%. The risk-free rate is 5%. CD Restaurants has debt/equity ratio .4, and tax rate 35%. Find the cost of equity for CD.

    		•
  • Q : FIN3000 Corporate Finance Task

    Task Description Length: 1000-2000 words (up to 500 words above 2000 permitted) Description: • Complete this assignment in groups of 4-5 students. • Maintain a portfolio of financial issues taken from 8 news sources. • Analyse the articles with reference to theory covered in class and h

    		•