Management of Financial Institutions Questions, December- 2013
Posted by Ripon Abu Hasnat on Tuesday, September 16, 2014 | 0 comments
Banking Diploma Examination, December- 2013
MANAGEMENT OF
FINANCIAL INSTITUTIONS (MFI)
Time- 3 hours, Full marks- 100, Pass marks-5O
The figures in
the right margin indicate full marks. Answer any five questions.
1. a) Write down the difference
between Commercial Bank and
Central Bank.
b) Explain the role played by
commercial Banks in an
2. a) Explain the problems and
prospects of interest rate
liberalization.
b) "As compared to other sectors economy, the banking sector is
more regulated- Why? What is the impact of such regulation on banking performance?
c) What are the processes of
obtaining long-term loan?
3. a) XYZ has 10 percent coupon bonds on the market with nine years left
to maturity. Par value of bond is Tk. 1.000 and make annual payment. If the bond currently sells for
Tk. 1075, what is its YTM?
b) Determine the
duration of the following securities:
Face Value = 1k. 1.000; Coupon Rate = 6% p. a.
Terms of maturity = 2 years YTM = 8%
Coupon payment
are to be made semi-annually.
4. a) Why ALM strategy is important in the
context of deregulated banking environment of Bangladesh?
b) If a bank has an ROA of 0.80% and Equity
Multiplier (EM) of 12, what is the ROE?
How does Bangladesh Bank control its money supply through open market
operation?
5. a) What is the financial intermediary? Briefly explain the function of
a financial intermediary.
b) Describe the different types of
financial institutions.
c) Discuss the risk
management process of a bank
6. The following information is for
New Bank Ltd..:
(In millions Tk.)
Interest Income Tk.
1875
Interest Expense Tk.
1210
Total Assets Tk.
15765
Securities
Gain (Loss) Tk.
21
Earnings Assets Tk.
12621
Total
liabilities Tk.
15440
Taxes Tk.
16
Number of Common Shares Tk.
1.45,000
Non Interest Income Tk.
501
Non Interest Expense Tk.
685
Provision
for Loan l.oss Tk.
381
You are required
to calculate: ROE, ROA. NIM. EPS, Net Non
Interest Margin and Net Operation Margin.
b) Discuss the various principles of insurance on which
insurance companies operate.
7. a) Discuss the important aspects that should be
considered by a banker while financing an industrial project.
b) What are the process of measuring and evaluating the performance of a
financial institution? Discuss briefly.
8. Write Short Notes (Any Four):
a) Risk Premium
b) Call Option
c) National
Payment Switch Bangladesh
d) Portfolio
Management
e) Risk weighted
Assets
f) Loan
Classification
g) Wages theory
of profit
h) Marine
Insurance
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