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Hi I would like to know the answer with regards to a paper you had previously answered Question 1 (a) By exploring and analysing the

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Hi I would like to know the answer with regards to a paper you had previously answered

Question 1 (a) By exploring and analysing the balance sheet of one of the three large banks in Singapore (DBS, OCBC or UOB), describe and discuss the functioning of a bank from its assets and liabilities components. (15 marks) (b) Analyse why and how regulators have implemented capital and liquidity requirements for this type of banks. (10 marks) (c) How do Singapore?s banking regulations compare to the Basel 3 standards? What are the consequences for the banks operating in Singapore? (10 marks)

image text in transcribed FIN301e Financial Instruments, Institutions and Markets Assignment 2 - Group-based Assignment January 2016 Presentation FIN301e Assignment 2 Group-based Assignment This assignment is worth 30% of the final mark for FIN301e Financial Instruments, Institutions and Markets. The cut-off date for this assignment is 22 February 2016, 2359hrs. This is a group-based assignment. You should form a group of 3 members from your seminar group. Each group is required to upload a single report to MyUniSIM via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. In this assignment, you are expected to: Describe the functioning of financial markets, and their role and significance in the economy Analyse the role and functions of financial instruments traded in financial markets Illustrate how financial instruments are traded in financial markets Demonstrate the essential knowledge and interpersonal skills to work effectively in a team Demonstrate proficiency in writing ___________________________________________________________________________ SIM UNIVERSITY Assignment 2 - Page 2 of 5 FIN301e Assignment 2 Question 1 (a) By exploring and analysing the balance sheet of one of the three large banks in Singapore (DBS, OCBC or UOB), describe and discuss the functioning of a bank from its assets and liabilities components. (15 marks) (b) Analyse why and how regulators have implemented capital and liquidity requirements for this type of banks. (10 marks) (c) How do Singapore's banking regulations compare to the Basel 3 standards? What are the consequences for the banks operating in Singapore? (10 marks) Question 2 Read the Financial Times article attached in annex and relate it to the concepts of market efficiency. You will in particular elaborate on the 3 forms if market efficiency and analyse which one is supported by the incident in the article. (15 marks) Question 3 Briefly explain the principle of securitization and how it contributed to the financial crisis. Highlight in particular some of the flagrant breaches of ethical behaviours committed by the different actors and/or conflicts of interests that took place between them during that episode. (15 marks) Question 4 Consider the following financial instruments: 1. SGD10 million SGS bills just issued today (discount basis) for 90 days at 0.52%, the market rate being at 0.52% 2. SGD10 million Commercial Paper issued by Capitaland just today (in fine interest payments basis) for 90 days at 0.58% 3. SGD10 million CD issued by OCBC just today for 150 days (in fine interest payments basis) for at 0.65%. 4. SGD10 million SGS 10 years bonds just issued today at 1.85% 5. SGD10 million 10 years bonds just issued today by Aztech Ltd at 3.85% 6. SGD10 million 12 years bonds just issued today by DBS at 2.15% 7. SGD10 million 15 years bonds just issued exactly 3 years ago by Singtel at 2% 8. SGD10 million shares in UOB bank trading at 20 SGD 9. SGD10 million shares in Agricorp Ltd trading at 0.16 SGD SIM UNIVERSITY Assignment 2 - Page 3 of 5 FIN301e Assignment 2 10. SGD10 million preference shares (14% coupon - par value 2$) in Keppel Corp trading at 6.25 SGD (a) Assess and determine to which segment of the financial market each of them belong (money market or capital market). (5 marks) (b) Indicate in which market each of them is trading today (primary or secondary market). (5 marks) (c) Rank them from the least risky to the most risky, and explain why. (5 marks) (d) Analyse in which case and/or for which purpose you might want to buy each of them. (5 marks) (e) Calculate the price you would have to pay to buy each of them today (assume bonds pay semi-annual interests) - show your workings (an Excel screenshot is acceptable as long as the formula used is visible) - Note that some prices may not require a calculation, and/or that some prices may be identical. (10 marks) (f) Explain: o The difference in rates between 4 and 5. o The difference in price between 2 and 3. o The difference in price and in rate between 1 and 2. o The difference in price between 6 and 7. o The difference in price between 8 and 9. (5 marks) SIM UNIVERSITY Assignment 2 - Page 4 of 5 FIN301e Assignment 2 Annex Adapted from Gina Chon in Washington. (2015) 'Perella Weinberg banker accused of insider trading with father', The Financial Times, 15 May. ---- END OF ASSIGNMENT ---- SIM UNIVERSITY Assignment 2 - Page 5 of 5

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