Reference no: EM131476029

Assignment: INTERNATIONAL BANKING

The coursework assignment consists of two parts, Part A and Part B. You must select one of two options for Part A; Part B is compulsory for all.

PART A: Choose one of the following two options.

Last year, DBS acquired the wealth management and retail banking business of ANZ Bank in five markets, namely Singapore, Hong Kong, China, Taiwan and Indonesia.

For your assignment, you are to conduct a detailed analysis of DBS Bank's internationalization and acquisition strategy for the last three years.

1) You shouldtherefore:

• Critically evaluate the key environmental considerations that would affect the bank's internationalization and acquisitionstrategy;

• Examine the critical resources needed and factors that would affect the bank's internationalisation and acquisitionstrategy;

• Identify and discuss the major risk factors that could weaken the bank's strategy and measures undertaken to overcomethem.

2) In addition, you should read a Bloomberg News dated 26th Sept 2016 regarding "How Singapore's No-Really-Rich have been burned by Swiber Bonds". Apparently, the bonds issued by Swiber Holding Limited had been arranged and underwritten by DBS bank. You shouldtherefore:

• Critically discuss the issues and challenges facing DBS bank when it arranged the bond issue for their customer, Swiber HoldingsLimited.
• Critically examine the issues and challenges facing DBS bank when it persuaded its depositors to purchase the Swiber'sbond.
• Critically analyse the relevant academic theories and concepts (i.e. asymmetric information, potential conflict of interest and agency costs) and support your essay with reasoned analysis, justifications andarguments.

(*) Requirements:

• You are required to collect and analyse the data and information through secondary sources (although primary sources of information is preferred) in order to ensure the accuracy of the report and successful completion of this assignment. You might need to read the study material for modules which you had completed earlieron.

For your assignment you need to read the story (as below) of a bank that had undergone massive derivative trading in one of the banks in Singapore.

After having read the story, you are to critically analyse the following issues for the benefit of your friend who is a financial journalist for a major newspaper:

• Explain clearly the nature of risks which the bank is engaged in derivatives trading and the nature of operational controls and other controls that should have been in place to prevent the bank from suffering huge losses from such tradingactivities.

• Critically evaluate the effectiveness of the bank's operational risk management policy if they are in compliance to Basel III Operational Risk Measurement requirements and support your analysis with well-argued analysis andjustifications.

• Clearly discuss the consequences of the losses for the bank's balance sheet and what the bank might now need to do to remove concerns about its financialposition.

• Critically examine the concerns of the financial markets regulators about the situation facing the bank and the extent to which the regulator might be in a position to take remedialaction.

Attachment:- INTERNATIONAL BANKING ASSIGNMENT.rar