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ASSIGNMENT
Course Code : MS - 424
Course Title : International Banking Management
Assignment Code : MS-424/TMA/SEM-I/2014
Coverage : All Blocks
Note
: Attempt all the questions and submit this assignment on or before 30th April,
2014 to the coordinator of your study center.
Q1.
Select any two International Financial Institutions and discuss the role and
functions of these institutions.
Ans
: International financial institutions (IFIs) are financial institutions
that have been established (or chartered) by more than one country, and hence
are subjects of international law. Their owners or shareholders are generally
national governments, although other international institutions and other
organizations occasionally figure as shareholders. The most prominent IFIs are
creations of multiple nations, although some bilateral financial institutions
(created by two countries) exist and are technically IFIs. Many of these are
multilateral development banks (MDB). International financial institutions
(IFI) are organizations that were created by national governments from
different nations. The World Bank, the International Monetary Fund (IMF), and
African Development Bank (AfDB) are all international financial institutions.
Some
Q2.
What do you mean by ‘Jurisdiction’ in the context of International Banking? In
which cases the court can grant leave as far as international banking
transactions are concerned. What are the legal restrictions on Jurisdiction?
Ans
: The international banking act provided FDIC
insurance for domestic branches of foreign banks. It also required them to
maintain a certain level of non-interest-bearing reserve account balances and
also submit to regular audits. These foreign branches are subject to the same
limitations as domestic banks. The Creating International Banking Act of 1978
was a legislative act that brought all American branches of foreign banks and
agencies under the jurisdiction of US banking regulations. It granted FDIC
insurance to these domestic branches, but also required them to hold the same
reserves and auditing schedules as US banks.
Brought foreign
banks within the federal regulatory framework. Recognized and deferred to state
laws regarding branching. Required deposit insurance for branches of foreign
banks engaged in retail deposit taking in the The International Banking Act of
1978 (P.L. 95‑369, 92 STAT. 607). Existing branches of
foreign banks engaged in retail deposit
Q3.
Consult any two treasury managers and try to find out the tools used by them
for successful management of treasury operations.
Ans
: Treasury management (or treasury operations) includes management of an
enterprise's holdings, with the ultimate goal of maximizing the firm's
liquidity and mitigating its operational, financial and reputational risk.
Treasury Management includes a firm's collections, disbursements,
concentration, investment and funding activities. In larger firms, it may also
include trading in bonds, currencies, financial derivatives and the associated
financial risk management.
Most banks have whole
departments devoted to treasury management and supporting their clients' needs
in this area. Until recently, large banks had the stronghold on the provision
of treasury management products and services.
Q4.
Take any Bank of your choice and try to find the types of risks the bank is
exposed to and how these risks are being managed.
Ans
: A Bank is a financial intermediary that acts
as an economic firm producing goods and services. With this view in mind it’s
easy to see that a bank exists to make a profit. In order for a bank to be
successful and make a profit, it has to take risk. A bank that is averse to
risk will be a stagnant institution unable to adequately serve its customers
effectively and produce a profit. However, a banking institution that takes
excessive or unnecessary risk is also likely to run into trouble. All risk is
uncertain but with bounds the probability of an outcome can be predicted using
expectation. A bank can also run into trouble if it decides to take a risk but
incorrectly fails to calculate the expectation and probability of that risk, if
it fails to correctly price this risk, or even both of these, as was the case
in the current financial crisis.
Q5.
Discuss the causes and consequences of Financial Innovation? Explain in detail
any two products of Financial Innovation.
Ans
: There are several interpretations of the phrase financial innovation. In
general, it refers to the creating and marketing of new types of securities.
Why
does financial innovation occur?
Economic theory
has much to say about what types of securities should exist, and why some may
not exist (why some markets should be "incomplete") but little to say
about why new types of securities should come into existence.
One
interpretation of the Modigliani-Miller theorem
Dear students get fully solved
assignments
Send your semester &
Specialization name to our mail id :
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or
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