Treasury management DEC 2024

Description

Treasury Management in Banking

December 2024 Examination

 

 

Q1. The organization structure of a Bank’s/Corporate Treasury unit involves designing of its operations across Front office, Mid-office, and Back office. Describe each of these three Businesses Offices in terms of its nature, purpose / objectives,  and the skills / qualifications required in these three important Businesses units of the Banks/Corporate.  (10 Marks)

Ans 3a.

Introduction

Treasury management in banking plays a vital role in ensuring that financial institutions efficiently manage their liquidity, capital, and risk exposure. A well-structured treasury unit typically consists of three essential business offices: Front Office, Mid Office, and Back Office. These offices collaborate to manage a bank’s financial resources, ensure regulatory compliance, and optimize returns while maintaining a prudent risk profile. Each office has a unique function and contributes to the overall efficiency and effectiveness of the treasury function. In addition, the skill sets required to operate in these offices vary, from strong analytical and risk management skills

 

It is only half solved

 

Buy Complete from our online store

 

https://nmimsassignment.com/online-buy-2/

 

NMIMS Fully solved assignment available for session DEC 2024,

 

your last date is 29^th Nov 2024.

 

Lowest price guarantee with quality.

Charges INR 299 only per assignment. For more information you can get via mail or Whats app also

Mail id is [email protected]

 

Our website www.aapkieducation.com

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

Whatsapp no OR Contact no is +91 8755555879

 

 

Q2. The Clearing Corporation of India (CCIL) plays an important role in trading and settlement of Forex. Money Market, Securities & Derivative Products in India. Discuss the role played by CCIL in Trading and settlement of Forex – Spot and Forwards (Forex Derivatives) for Bankers and FX-Retail for the Corporates. (10 Marks)

Ans 2.

Introduction

The Clearing Corporation of India Ltd. (CCIL) is a vital institution in India’s financial system, playing a pivotal role in the settlement and clearing of transactions in multiple segments such as the Forex, money markets, government securities, and derivative markets. Established in 2001, CCIL is designed to ensure the safe and efficient trading, clearing, and settlement of financial instruments in India. Its operations have become integral to risk mitigation, regulatory compliance, and market

 

 

 

Q3. “A prudent Interest Rate management ensures bank’s profitability, MTM of Bank’s portfolio of securities and overall inflation stability in an economy”

1. Discuss The impact on Bank’s profitability/MTM on Bank’s portfolio of securities and inflation when Repo increases and reduces respectively. (5 Marks)

Ans 3a.

Introduction

Interest rate management is a critical aspect of a bank’s overall financial health, directly affecting profitability, the mark-to-market (MTM) value of its securities portfolio, and inflation in the broader economy. Central banks, like the Reserve Bank of India (RBI), use interest rate tools such as the repo rate to control inflation, liquidity, and economic growth. Changes in the repo rate impact how banks borrow, lend, and invest, influencing their profit margins, asset values,

 

1. Explain the difference & Purpose of Repo Rate and Reverse Repo Rate. (5 Marks)

Ans 3b.

Introduction

The repo rate and reverse repo rate are essential tools used by central banks, like the Reserve Bank of India (RBI), to manage liquidity and control inflation in the economy. These rates serve as benchmarks for short-term interest rates in the financial system, influencing how banks borrow and lend money. The repo rate is the rate at which commercial banks borrow funds from the central bank,