FIN 203 – Banking and finance Assessment 2 Assessment Type: Research Report – 2,500 words report - Individual assessment Purpose: This project will further students’ understanding of Australia’s...

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FIN 203 – Banking and finance












Assessment 2





Assessment Type: Research Report – 2,500 words report - Individual assessment




Purpose: This project will further students’ understanding of Australia’s commercial banks’ sources of funds in response to the internationalization of financial markets. This assessment contributes to learning outcomes a, c and f.




Value: 30% Due Date: Week 10




Submission: One soft copy (Word .doc or .docx) of the report to be uploaded to Moodle Turnitin by 11:59 p.m. Sunday Week 10. One hard copy to be submitted to your Tutor in Week 10 Tutorial session.



Topic: International Sources of Funds for Australian Commercial Banks.




Task Details: Since the deregulation of financial markets, banks have been looking at international financial markets as an alternative cost-efficient source of funds. Students will research the international source of funds for the four big banks (ANZ, Commonwealth Bank, NAB and Westpac) and at least two smaller banks and produce a report.




Students should:




(1) Obtain the annual reports from 2006 to 2018 for the four big banks and least two smaller ones.


(2) Review the annual reports and summarize the foreign currency liabilities of each bank.


(3) Write a report that includes the following:


a. A comparison of each bank’s international source of funds over time and the differences between each bank;


b. A comparison of the big four banks with the smaller banks; and


c. An assessment of the impact of the Global Financial Crisis (GFC) on the international source of funds, pre and post GFC periods.


d. Given your insights from a – c, recommend to the Australian government a financial policy that could ensure the stability of commercial banks’ (especially smaller banks), access to international funds.



Research Requirement: Students need to support their analysis with references from the text and a minimum of six (6) suitable, current and academically accepted sources -check with your tutor if unsure of your sources. Students seeking Credit or higher grades should support their analysis with an increased number of reference sources consistent with the grade they are seeking.




(a) Executive Summary


(b) Table of Contents


(c) Body (main contents – each to be a separate numbered section).


- Introduction


- Research – literature review


- Analysis – this is the major part of your assignment and requires numbered sub-sections


- Recommendations


- Conclusion


(d) References


(e) Appendices













































Reading and Research



30



Analysis



30



Recommendations and conclusions



20



Written presentation



20



Total



100







Marking Guide:











This total will be converted to a mark (correct to the nearer whole number), out of 30% Please see Marking Rubric on the following page.




..
























Assessment 2 marking Rubric for: FIN203 Banking and Finance (Individual Assignment)


Assignment Title: International Sources of Funds for Australian Commercial Banks

















































Criteria




Fail



(0 – 49%)




Pass (50 – 64%)




Credit (65 – 74%)




Distinction (75 – 84%)




High Distinction (85 – 100%)




Research – extent and application




Value 30%


Mark awarded



Inaccurate, or inappropriate or no sources of data; relies on completed reports downloaded from the internet.



Minimum number of sources including, annual reports, but not all current or relevant.


Paraphrasing used throughout, but not always accompanied by original explanations.



Good selection of sources, including annual reports (all current) of six banks. Good understanding of relationship between international financial markets and banks sources of funding.


Limited paraphrasing accompanied by clear and logical explanations.



Very good selection of sources, including annual reports of more than six banks, all current. Insightful discussion of relationship between international financial market and banks‘ sources of funding.


Provides clear and insightful logical explanations.



Excellent selection of sources, including annual reports of more than six banks. Advanced insights and succinct discussion of relationship between international financial markets and banks‘ sources of funding. Provides clear and insightful logical explanations.


Systematically synthesises a wide range of current relevant sources.




Analysis of the topic




Value 30%


Mark awarded



Poor analysis and evaluation. Significant gaps in comparison of banks‘ international sources of funds over time and between banks. No distinction between the Big Four banks and smaller banks; Impact of GFC not articulated.



Basic summary of data. Simple discussion of work reflects limited engagement with the differences in international sources of funds over time and between banks.


Basic discussion of differences between the Big Four banks, and between the Big Four and the smaller banks.


Briefly mentions impact of GFC



Good summary of data.


Identifies and adequately discusses differences in international sources of funds over time and between banks. Good discussion of differences between the Big Four banks, and between the Big Four and the smaller banks.


Briefly discusses impact of GFC.



Clear and concise summary of data. Identifies and critically discusses differences in international sources of funds over time and between banks. Critically discusses differences between the Big Four banks, and between the Big Four and smaller banks.


Discusses impact of GFC in depth, comparing pre and post periods



Clear and concise summary of data. Identifies and critically analyses, synthesises and evaluates differences in international sources of funds over time and between banks. Critically discusses differences between the Big Four banks, and between the Big Four and smaller banks.


Discusses impact of GFC in depth, comparing pre and post periods; Highlights differences of impact of GFC between the Big Four banks, and between the Big Four


and smaller banks.




Recommendations / conclusions




Value 20%


Mark awarded



Does not resolve to any policy recommendation.



Weakly resolves to some policy recommendations but does not logically follow analysis of data and comparisons between banks, including the impact of GFC



Clearly resolves to good recommendations, partly following from logical analysis of data and comparison of the banks‘ international sources of funding, and including the impact of GFC. Attempts to evaluate the policy.



Clearly resolves to very good recommendations, after rigorous logical analysis of data and comparisons of banks‘ international sources of funding and the impact of the GFC. Evaluates policy to show intended effect.



Clearly resolves to very good recommendations, after rigorous logical analysis of data and comparisons of banks‘ international sources of funding and the impact of GFC. Assesses recommended policy against existing government policy and shows that recommended policy wold be more effective.




Presentation




Value 20%


Mark awarded



Unacceptable presentation: no title page; executive summary and table of contents. No referencing / not systematic


/ incorrect.


Graphs and tables are inaccurate/absent


/ not referenced.



Acceptable presentation with obvious errors.


Provides title page; executive summary; and table of contents. Referencing contains minor errors. Basic or no graphs and tables.



Good presentation overall but some obvious errors.


Satisfactory graphs and tables. Provides title page; executive summary and table of contents.


Referencing is mainly accurate.



Professional presentation – minor errors in structure and flow. Provides title page; succinct executive summary and table of contents.


Well defined graphs and tables. Correct referencing throughout.



Highly professional presentation. Satisfies all presentation elements. Correct referencing throughout.




Answered Same DayJan 12, 2021FIN 203

Answer To: FIN 203 – Banking and finance Assessment 2 Assessment Type: Research Report – 2,500 words report...

Vasudha answered on Jan 21 2021
138 Votes
Project Report on International Sources for Australian Commercial Banks
International Sources of Funds for Australian Commercial Banks.
Large Banks: ANZ
         Commonwealth Bank
          NAB
     Westpac
Small Banks: Bank of Queensland
         Macquarie Bank
    Table of Contents
     
     
     
     
     
     
     
     
     
     
     
    Executive Summary
     
     
     
    3
    
    
    
    
    
    Introduction
     
     
     
     
    4
    
    
    
    
    
    
    Sources of Capital for International banks
     
    5
    
    
    
    Assessment of GFC on the sources of Funds

     
    8
    
Recommendations
     
     
     
    10
    
    
    
    
    
    References
     
     
     
     
    11
     
     
     
     
     
     
     
     
     
     
     
     
     
     
Executive Summary
A study is conducted International Sources of Funds for Australian Commercial Banks. Study was done on the four Major Australian Banks, ANZ, Commonwealth Bank, NAB and Westpac and the two smaller banks Bank of Queensland and Macquarie Bank.
Report includes the comparison of each Banks, International Sources, how effectively they are using the International agencies and sourcing the funds and the challenges which are encountered by these Banks.
There is also mention about the Global Financial Crisis, which impacted Banks and Financial institutions across the Globe. Study conducts the pre and post GFC effects,
The kind of enormous damage it caused the global economy and Australian economy in particular.
Recommendations to the Government to offset the impact of GFC on its financial systems and steps to be taken in future safeguard its robust system.
There is an increasing scrutiny of Australian Banks, as we have seen from 2009, there are eight inquiry committees and standing Committee on Economics, which are becoming a regular feature and which is well followed by politically and in media.
As, GFC shattered the confidence of the investors, stake holders and the financial system, Banks and financial system at large are focused inwardly and shifting their focus from customer centric and society at large.
As Jennifer Hewitt of the Australian Financial Review wrote, “The newly required level of self-defense from the banks includes their interest rate policies but also extends to their profits, their executive pay levels and the whole banking culture now attracting so much opprobrium.”
The point to be highlighted is that, Australian Banks are largely unaffected by the impact of GFC, as they followed good balance in the Asset structure and used the traditional approach of policies and regulations in lending pre and post GFC.
Introduction
The Australian Financial System went through a drastic change in its financial operations, after the Campbell Inquiry.
In the early 1970s, when the wide range of controls was there on the financial system, financial deregulation began. When the economy growing, in order to have monetary control.
These controls aim to
1. Creating Captive market for Government Securities, allows self funding of Government.
2. To maintain the stable exchange rate and encourage domestic savings and having a cap on the funds going out of the country.
3. Allocating the funds to priority sector of the economy, like housing, infrastructure, public
4. Helps the banks to the calculative risks.
5. Promoting credit to the priority sector, Health, Housing sector and insurance companies which cater to the general needs of the economy.
Deregulation Process:
After the much debate in Reserve Bank on the deregulation process, it was agreed to tentatively to adopt the deregulation process. One school of thought had the opinion to continue the previous money control process with simply extending or adding the additional financial products and range.
The power to change the monetary system is not solely lies with the Banks but also with the legislature to pass laws to this effect. Like, there was additional legislation to pass to regulate the activities of non banking financial sector and adding to this banks were given freedom to decide on the interest rates on a competitive rates.
Some of the Key points from the process of deregulation are:-
1. It becomes difficult for the public to accept any policy change of the government.
2. The outcome or the consequences are not entirely predictable by the government and policy makers.
3. It takes long time to for any policy decisions to implement and functions as per the plan, as some regulations are implemented on a sequential manner and some regulations are
4. New reforms were aimed at increase in the competitiveness and efficiency of the banking sector.
Need for International Funding:
Australian Banking System plays a pivotal role in the country’s financial system. Banking system has grown from mere providing traditional services to fund management, insurance and stock broking functions.
It is well accepted fact that, Banks in emerging markets are in need of capital. Against the regulatory backdrop, banks are looking for additional as efficiently and effectively as possible.
With more regulatory requirements now, Banks are more focusing on risk-weighted assets. There should be a right mix of Capital and debt.
· Common Equity Tier 1 – with retained earnings, common shares and other reserves.
·...
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