This is a paper that focuses on the HSBC Holdings PLC UK critical analysis. The paper also focuses on various aspects of the company in terms of management.
The HSBC Holdings PLC UK critical analysis
Instructions on Assessment: PLEASE READ VERY WELL AND EMAIL ME WITH ANY QUESTIONS: Topic on HSBC Holdings PLC UK you are required to present a report critically analysing and demonstrating your understanding of the 1Sources, Measurement, 3 Management and 4 Regulatory infrastructure of the following three risks: interest rate, liquidity and operational risk 1.Interest Rate Risk 1.Briefly discuss what is interest rate risk to a bank 2. Explain and analyse the Duration Model, create a recent duration model for HSBC 3. Discuss Regulatory requirements regarding interest rate risk for UK banks 4. Analyse Methods of interest rate risk management such as Asset & Liability management in HSBC (800 words)
2. Liquidity Risk
1.Firstly, briefly discuss what is Liquidity Risks to a bank, Measurement of Liquidity Risks
2.Secondly, analyze the Capital & Liquidity Requirements of HSBC
3.Thirdly, examine sources of liquidity risk such as Market liquidity risk, Monetary liquidity risk, Funding liquidity risk, Bank liquidity risk in HSBC
4.Fourthly, talk about Liquidity risk management in HSBC such as Stored Liquidity (Asset) Management and Purchased Liquidity (Liability) Management (1000 words)
3. Operational Risk
1. Firstly, briefly discuss what is operational risk to a bank, talk about how swap contracts can manage operational risk.
2.Secondly, discuss The three pillars of regulation: P1) Min. Capital Req’mts P2) Supervisory Review P3) Market Discipline
3. Thirdly, investigate the financial statement of HSBC (find 2019 statement on HSBC website), test the efficiency of the financial institution itself and its disclosure.
4. Lastly, test the efficiency of the price fluctuation for the bank using historical data of stocks (attached), and answer: Is the bank common stock is efficient?
Based on the interest rate, liquidity and operational risks identified in Part A, construct a fraud risk assessment framework of three associated risks that HSBC is currently exposed to or will be exposed to in the foreseeable future. Pay particular attention to the current regulatory infrastructure in which HSBC operates. – 1. construct a fraud risk assessment framework of interest rate risk, liquidity risk and operational risks that HSBC is currently exposed to, or will be exposed to in the foreseeable future. Pay particular attention to the current regulatory infrastructure in which HSBC operates. 2. Discuss What Kind of policy does the bank adapt to fight the risk of fraud
• Font – Arial 12, whole document being fully justified with 1.5 line spacing. • • Titles and headings should be in bold. Section headings should be in number e.g. 3.1. • • Referencing must be APA 6th for example: McMath, M. (2016) Liquidity mismatch and maturity transformation: a study on the UK banks, International Journal of Risk and Return, Vol. 11(7), pp. 21-29 • • APA 6th Citation should be as: McMath (2015) and if more than two authors should be as McMath et al., (2015). • • Quotations of more than 2 lines must be indented and in italics with the reference and page number stated.