Module title

BANKING AND FINANCIAL REGULATION

CRN

56702 56963

Level

7

Assessment title

Report 3000 words

Weighting within module

This assessment is worth 100% of the overall module mark.

Module Leader/Assessment set by

Dr. Jean Bessala

J.L.Bessala1@salford.ac.uk

Room 309, 3rd floor Maxwell Building, Salford Business School

Submission deadline date and time

The submission deadline isThursday, 1^stMay 2025by no later than 16:00.

Any submission received after 16:00 (even if only by a few seconds will be considered as late).

For coursework assessments only: students with a Reasonable Adjustment Plan (RAP) or Carer Support Plan should check your plan to see if an extension to this submission date has been agreed.

How to submit

You should submit your assessment on Blackboard under the folder: Assessment > Assessment 1 Report.

Your submission must be in a Word document format

As the University will mark assessments anonymously where this is possible, please use your student roll number and not your name on your submission.

Assessment task details and instructions

Please note:

Discuss means evaluate the positive and negative aspects of an issue, the for and against of any proposition before coming to a balanced and informed judgement that is persuasive.

PART A

Requirements:

A financial institution based in Barbados (Barbados Fin-Trade Corp that engages in trade finance requires a corresponding bank in North America to make international payments to carry out international transactions. Specifically, they want the bank to be able to confirm its letter of credit and bills of exchange.

As an expert in banking and finance, you have been tasked to assess the three North American Bank (BMO Bank of Montreal, Wells Fargo & Co, Santander SA, and Toronto Dominion Bank) and recommend which one should be the first choice for Barbados Fin-Trade Corp to correspond with.

An overall assessment is required based on the analysis of the following:

a)Net Stable Funding

b)Capital Adequacy

c)Leverage

Your report should adopt the following structure and provide the following:

I.Summary

The summary should include a brief overview of the state of the banking industry, an outline of the work, and the main highlights of your analysis.

(8 marks)

II.Fundamental Analysis

You should calculate the ratios (covering a five year period) mentioned below and provide a comprehensive analysis of the current state and changes in the ratios

a)Net Stable Funding Ratio

(12 marks)

b)Capital Adequacy ratio

(12 marks)

c)Leverage ratio

(10 marks)

III.Conclusion

You should summarise your findings, highlight their significance for the future of the bank, and discuss the shortcomings of your analysis.

(8marks)

Additional Instructions (for Part A only):

Further guidance on task completion, relevant resources, and the format of the report are available using the following link(click here).

Use Orbis Global database to download the data needed to calculate the ratios for the three banks.

A 5-year historical performance is adequate for assessing the performances of the banks.

It is expected that the assessment is well structured and adequately discussed by comparing ratios and other variables.

Using graphs and tables will enhance your evaluation and presentation and will help reduce your word count.

You must present constructed and substantiated arguments explaining and synthesising complex information to put together an independent and appropriate analysis with well-developed reasoned judgment.

You are being assessed on your understanding of the material delivered in the module more credit will be given for applying concepts and principles covered in the classroom.

Always re-read what you have written the next day and make sure that it is clear if not then rewrite.

PART B

You must answer two of three questions:

Question 1

In addition to trade finance, Barbados Fin-Trade Corp also engages in loan sales and securitization. Describe the concept of asset securitization and discuss its effectiveness as a tool for risk management.

(25 marks)

Question 2

Following the financial crisis of 2008, the Bank of International Settlement developed a set of rules generally known as Basel III. These rules aim to strengthen the regulation, supervision and risk management of banks. The term stress tests is commonly associated with Basel III. Explain this concept and evaluate the effectiveness of stress test scenarios in relation to the spirit of Basel-III regulations.

(25 marks)

Question 3

A competitor of Barbados Fin-Trade Corp has recently been fined for financial crimes relating to money laundering and the company is concerned about its compliance with International Anti-Money Laundering Laws. As an expert consultant in the field, discuss the concepts of money laundering and evaluate the robustness of the current legal and regulatory framework for money laundering.

(25 marks)

Additional Instructions (for Part B only):

You are being assessed on your understanding of the material delivered on the module use material from the lectures and seminars (e.g. slides etc), this will be given far more credit than random paraphrased downloads from the internet which usually struggle to achieve a pass mark.

You must present constructed and substantiated arguments explaining and synthesising complex information to put together an independent and appropriate analysis with well-developed reasoned judgment.

Words that are not your own MUST be enclosed in inverted commas and the source given immediately afterwards and a full reference at the end (e.g. Tomorrow is another day (Mitchell 1936) with a full reference at the end i.e. Gone with the Wind etc) Refer to the library for guidance on referencing.

Always re-read what you have written the next day and make sure that it is clear if not then rewrite.

Assessment Criteria

You should look at the assessment criteria to find out what we are specifically looking at during the assessment.

Knowledge and Understanding

Practical, Professional or Subject Specific Skills

Assessed intended learning outcomes

On successful completion of this assessment, you will be able to:

1. Evaluate credit decisions and the related portfolio risk and complete a financial analysis of a business, undertake monitoring & control.

2. Critically analyse strategic decisions by using technical knowledge of bank procedures combined with financial analysis skills.

3. Critically analyse and evaluate strategic and operational decision making within an ethical and socially responsible framework of corporate governance.

4. Evaluate the performance of banks

1. Apply Information technology in evaluating the consequences of modern bank management techniques.

2. Formulate alternative strategies to problem situations.

3. Evaluate and judge behaviour of strategic choices on bank performance under different market scenarios.

4. Locate, summarise and synthesise a range of information from electronic data sources relevant to modern international banking.

5. Work independently and collaboratively with others, developing team working and leadership skills appropriate to traders and risk analyst and finance managers operating in a global business context.

Employability Skills developed / demonstrated

You will develop a range ofemployability skillssought by employers through each assessment.

Through this assessment will have an opportunity to develop and demonstrate the following employability skills:

(please put a cross in the box for the skill and level demonstrated in the assessment)

I = You will have been introduced to this skill

U = You will have developed an understandingof this skill in the context of your subject

A = You will be able to apply this skill in the context of your subject

D = You will have demonstrated an enhanced understanding and application of this skill in a wider context

Using Artificial Intelligence (AI) Tools

Explain if and how students can use AI tools within this assessment. AI features of assistive technologies should be authorised unless agreement has been obtained through an ADA. Staff guidance is available on theLTEC hub site.

For this assessment, the use of tools, software, or features of software which use artificial intelligence to generate content such as text, images or data, is not authorised. The work you submit must be entirely your own, representing your own abilities and ideas. The use of AI to generate a response to questions in this assessment, or the assessment brief, is academic misconduct. Reliance upon AI tools will also become problematic for you both in further study and your future career as the knowledge, and critical and analytical thinking required for this assessment are essential, foundational skills you are expected to acquire and develop independently.

Word count/ duration (if applicable)

Your assessment should be completed within a minimum of 2500 words and a maximum of 3000 words.

Tables, graphs, a content page, and a reference list are not included in the word count.

There will be no direct penalty, but assessment marking will end at the stated wordcount.

You should base your response mainly on the material delivered in the module for which some reference to the underlying literature is required. Where you believe a relevant source adds value to your arguments, ensure that the source is cited appropriately.

Students are advised that long submissions are associated with a lack of editing out irrelevant material; it is not the role of the marker to do this.

Feedback arrangements

You can expect to receive feedback by the 15th working day after the submission deadline.

Feedback for this assessment will be provided within the body of the submission on Blackboard and in the feedback summary area. The feedback will consist of marks and comments about the application of module materials, use of relevant sources, level of analysis, academic style, and presentation.

Formative feedback will be provided prior to the submission deadline, during seminars and arranged 1-2-1 meetings.

It is important that you take advantage of the help being offered. If you have a problem when undertaking the assignment, ask the tutor.

Academic Integrity and Referencing

Students are expected to learn and demonstrate skills associated with good academic conduct (academic integrity). Good academic conduct includes the use of clear and correct referencing of source materials. Here is a link to where you can find out more about the skills which students need:

Academic integrity & referencing

Referencing

Academic Misconduct is an action which may give you an unfair advantage in your academic work. This includes plagiarism, asking someone else to write your assessment for you or taking notes into an exam. The University takes all forms of academic misconduct seriously.

Assessment Information and Support

Support for this Assessment

You can obtain support for this assessment by raising questions during lectures, seminars and in any collaborative sessions delivered as part of the delivery on an ad hoc basis. You can also contact your tutor via email or Blackboard messages.

Alternatively, you can meet your lecturer during the following office hours:

Monday: 1:30 3:30 PM

Thursday: 1:00 3:00 PM

A range of support materials are available on Blackboard under the Padlet Assessment - support materials. Within this activity space, you will find notes providing detailed guidance on how to complete each task, a template for the suggested structure of your report, as well as other resources

You can find more information about understanding your assessment brief and assessment tips for successhere.

Assessment Rules and Processes

You can find information about assessment rules and processes in the Assessment Support module in Blackboard.

Developyour Academic and Digital Skills

Find resources to help you develop your skillshere.

Concerns about Studies or Progress

If you have any concerns about your studies, contact your Academic Progress Review Tutor/Personal Tutor or your Student Progression Administrator (SPA).

askUS Services

The University offers a range of support services for students throughaskUSincluding Disability and Inclusion Service, Wellbeingand Counselling Services.

Personal Mitigating Circumstances (PMCs)

If personal mitigating circumstances (e.g. illness or other personal circumstances) may have affected your ability to complete this assessment, you can find more information about the Personal Mitigating Circumstances Procedurehere. Independent advice is available from the Students Union Advice Centre about this process: https://www.salfordstudents.com/advice/centre

In Year Retrieval Scheme

Your assessment is not eligible for in year retrieval.

Reassessment

If you fail your assessment, and are eligible for reassessment, you will be able to find the date for resubmission on your module site in Blackboard.

For students with accepted personal mitigating circumstances for absence/non submission, this will be your replacement assessment attempt.

The reassessment tasks will be the same as the tasks of the original assessment.

We know that having to undergo a reassessment can be challenging however support is available. Have a look at all the sources of support outlined earlier in this brief.