--%>
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 : Affect the value of the stock Is the

     Is the value of this stock dependent on how long you plan to hold it? In other words, if your planned holding period were 2 years or 5 years rather than 3 years, would this affect the value of the stock today, P0? Explain your answer.<

    		•
  • Q : Long-Term Debt What are Long-Term Debt

    What are Long-Term Debt and what are their main parts.

    		•
  • Q : What is Stock Market Stock Market : To

    Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.

    		•
  • Q : Explain valuation method for

    We were assigned a valuation of a pharmaceutical laboratory’ shares. Which valuation method is further convenient?

    		•
  • Q : Define capital goods Capital goods :

    Capital goods: Goods employed in producing other goods are termed as capital goods.

    		•
  • Q : Problem on EBIT ABC Corporation stock

    ABC Corporation stock sells at $27 per share and its dividend per share is $1.20. ABC has price-earnings ratio of 16. The company contains $40 million worth of bonds, selling at par, with 8.5% coupon. The EBIT of ABC is of $12 million and its tax rate is 30%. Calculat

    		•
  • Q : Explain lognormal random walk based on

    Explain lognormal random walk based on Brownian motion.

    		•
  • Q : Calculated betas when they give

    Calculated betas give different information if they are acquired by using weekly, monthly or daily data.

    		•
  • Q : Explain any indisputable model for

    Is there any indisputable model for valuing the brand of a company?

    		•
  • Q : Explain the structure

    Our company (A) is going to buy the other company (B). We need to value the shares of B and, thus, we will use three options of the structure Debt/Shareholders’ Equity in order to obtain the WACC as: 1) Present structure of A

    		•