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Assignment Finance: Financial Operations

   

Added on  2020-05-28

7 Pages1631 Words70 Views
Running head: FINANCEFinanceName of the Student:Name of the University:Authors Note:

FINANCE1Table of Contents1. Identifying and critically discussing 2 key roles of bank in terms of contribution to countryfinancial system:.........................................................................................................................22. Critically evaluating the problems associated with relying on debt finance being providedby bank with those parties who are a financial surplus unit to those who are a financial deficitunit:............................................................................................................................................23. Critically changing the capital adequacy, liquidity and leverage as stipulated by Basel IIIand discussing the impact of these changes in banks financial condition:................................34. Critically explaining the process of asset securitization and why banks may wish tosecuritize:...................................................................................................................................45. Critically discussing the implication of global crisis on banks financial shortly after thecrisis and discussing the measure used by the country to calm the crisis:.................................5Reference and Bibliography:......................................................................................................6

FINANCE21. Identifying and critically discussing 2 key roles of bank in terms of contribution tocountry financial system:There are certain roles that is played by OCBC Bank in Singapore,Barclays Bank inUK and Citigroup in USA, which directly helps in smoothing the functioning of financialsystem in the country. The identified organisations mainly contribute to the distribution ofmonetary system in their country, which efficiently helps in improving financial operations.The credit provision and liquidity provision is effectively conducted by OCBC Bank inSingapore, Barclays Bank in UK and Citigroup in USA, which helps in supporting thefinancial system of the country. The increment in credit provisions could directly fuel theeconomic activity of the country, where business could flourish and generate higher cashflow. This credit provision could fuel economic activities, where investment beyond cash onhand is conducted (Ocbc.com 2018). This helps in increasing homes purchase withoutsavings the entire cost in advance and government to smooth their spending for investing ininfrastructure projects. Liquidity provisions are also conducted by OCBC, Barclays Bank andCitigroup, which allows both demand deposits and credit provisions. These banks directlyconduct financial market services such as buying and selling securities, which help insupporting financial requirements of organisations. The banks are the main provider ofliquidity to the organisation and customers in their respective countries.2. Critically evaluating the problems associated with relying on debt finance beingprovided by bank with those parties who are a financial surplus unit to those who are afinancial deficit unit:There is different level of problems that arises from debt finances, which needs to beaccommodated by banks before providing finance to companies. In addition, banks supportthe companies with financial surplus rather than financial deficit, as they have highercapability to repay the financing amount with interest. The main problem associated with the

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