--%>
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 : Types of Corporate Bonds What are the

    What are the various types of Corporate Bonds?

    		•
  • Q : What is the market risk premium What is

    What is the market risk premium within Spain at the present time – the number that I have to use in the valuations?

    		•
  • 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 : What is optimal capital structure What

    What is optimal capital structure?

    		•
  • Q : Illustrates financial consultant has

    A financial consultant obtains various valuations of my company when this discounts the Free Cash Flow (FCF) as opposed to when this uses the Equity Cash Flow. Is it correct?

    		•
  • Q : Explain company creates value for its

    Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?

    		•
  • Q : Calculating Super normal profit The

    The case study of an economic analysis is done for Schlumberger, oilfield Service Company.  They are No. 1 in terms of market caps, revenue and employees globally. When any references are used/outside sources (except for Schlumberger's annual reports and financia

    		•
  • Q : CAPM-Project Evaluation and Risk

    UCD Vet Products – a hypothetical publicly traded corporation (UCDV) — is considering investing in a new line of equine DNA analysis technology for race horse breeders. The project will yield the net cash flows listed in the table below. Assume that this p

    		•
  • Q : What is the required rate of return on

    Woidtke Manufacturing's stock currently sells for $29 a share. The stock just paid a dividend of $2.50 a share (i.e., D0 = $2.50), and the dividend is expected to grow forever at a constant rate of 9% a year. What st

    		•
  • Q : Porters Secondary activities Porter's

    Porter's Secondary activities: 1. Procurement: • Identification process of raw material.• Identification process of identifying probable suppliers.• Process of purchasing and calling quotes. 2. Human Resource management:

    		•