banking managment

Managing Banks in a challenging environment.

For your Final exam, you are required to prepare a comprehensive report of not less than (3000 words), about how banks can manage their activities in an increasingly challenging environment. In your report you concentrate on the following areas of bankers and director’s responsibility:

1- To increase bank share value in the market

2- Managing bank assets and liability

3- Bank liquidity management,

4- Bank reserve management and Bank performance.

The below areas need to be highlighted and the questions answered.

1- Bank performance: ( 30 Marks)

a) What is meant by performance evaluation of a bank and how is it done? ( 5 marks)

b) Can stock price be an indicator of bank performance? If not, what is the alternative? Give examples. Can these alternatives be reliable? ( 10 marks)

c) Achieving superior profitability for a financial institution depends upon several crucial factors. Indicate at least 5 of these factors. (15 marks)

2- Liquidity Management. (30 marks)

It has been said that, financial firm is considered Liquid if i has read access immediately spendable funds at a reasonable cost.

You are required to include in your report not more than 3 pages about bank liquidity management in which you are answering the following questions:

1- How banks can manage its Demand and Supply for liquidity? (5 marks)

2- Why a financial firm often face significant liquidity problem ( 5 marks).

3- What strategies available to a bank management to manage its liquidity (20 marks)

3- Bank Reserve Management. (20 marks).

Bank reserve is the amount of cash banks have to keep, not to lend or to invest it but to keep it for emergency needs as the case may be. Banks are required by regulators to keep reserves, primarily for the purpose of protecting deposits of the depositors.

You include your in report not more than 3 pages explaining the concept of legal reserve,

through which you are answering the following questions.

1- Why banks need to manage their legal reserve? Is there any possibility for a bank to face a reserve deficit? (5 marks).

2- In case of a legal reserve deficit, what options are available to the bank to cover its deficit? (5 marks)

3- In choosing which sources of reserves to use to cover legal reserve deficit, what factors and aspects their institutions, that managers must carefully consider. (10 Marks)

Your report has to have the below simple structure:

· Title of your report, your name and ID No.

· Clear content referring to topics of the report.

· An introduction.

· The body of your report.

· Your conclusion.

· References. APA Format.

x Following are your guidelines:

a) Upload your work on TURINITIN.

b) Use at least 5 different sources other than your textbook while preparing your report. Journal articles preferred. You can use E Books/ E Databases .