a. Michael Bank has suffered a huge loss in the foreign exchange market due to a mistake in the trading position of British Pound. The management of the Michael Bank has reported to the Hong Kong Monetary Authority and proposed some reforms. However, no action has been taken for quite a long time because the management cannot reach a consensus on the remedial actions. What the Hong Kong Monetary Authority can do to deal with this situation? Provide the answers in points form. You are required to keep the answer as concise and relevant to the question as possible and must not include irrelevant answers. Please note that 1 mark will be deducted from the total mark of this question for every wrong or irrelevant answers provided. (5 Marks)

b. Recently, Solomon Bank has been criticized by one newspaper continuously. The accusation has no ground and there is no evidence. However, this has led to a drop in the total number of depositors for three months already. In order to effectively handle similar issues, which management processes should be strengthened for Solomon Bank? Provide the answers in points form. You are required to keep the answer as concise and relevant to the question as possible and must not include irrelevant answers. Please note that 1 mark will be deducted from the total mark of this question for every wrong or irrelevant answers provided. (5 Marks)