Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 Post Graduate Diploma Bank management MA0027 - Financial System

POST GRADUATION DIPLOMA IN BANK MANAGEMENT

Subject code MA0027
(2 credits)
Set 1
Marks 30
Subject Name: Financial System & Commercial Banking
All ques. carry five marks every

Q.1. “The banking system contributes to economic growth and national income through identification and funding of productive investments”. Comment.
Q.2. Highlight the differences ranging from primary market and secondary market..
Q.3. discuss the role of stock exchanges in achieving the objectives on development of the secondary market in India.
Q.4. Comment on the impact of Liberalisation in achieving the competitiveness amongst banks in India.
Q.5. “Regulators play a vital role in monitoring and controlling the various segments of the financial system”. Offer your views with reasons.
Q.6.Read the case study and ans the ques. at the end: It is observed that Chinese banks have a played a significant role in the emergence of China as a dominant economy within a period of about 15 years since 1990 These banks in the public sector are not credit shy and create and deliver massive credit to all sectors of the economy, thus transferring the savings into productive investments. Small business and Infrastructure projects receive specific attention and finance is given on attractive term. Banks operate on thin spreads. The country has a stable currency and anti-inflationary monetary policy. Apparently the banks and financial institutions have played a stellar role in the emergence of China as a dominant political and economic powerin the world. The banks in China are also helping their businessmen, worldwide by opening a large number of International branches. The Bank of China has many as 550 branches and subsidiaries in 23 countries. The overseas branches of the bank not only support Chinese businessmen in overseas countries, but with their vast network, they also induce foreign companies to make investments in China. According to the Chairman of the Central Bank “the basic mission of Chinese bankers is to be of service to the National economy and also generate revenue for the State. Chinese bankers are aware that they are the catalyst for economic development pointing to the dominance of China in the world.
1. What is the role of banks in serving the nation and generating profits for the Sate?
2. elaborate the lessons for Indian banks from the Chinese experience?


POST GRADUATION DIPLOMA IN BANK MANAGEMENT
ASSIGNMENTS
Subject code MA0027
(2 credits)
Set 2
Marks 30
Subject Name: Financial Systems and Commercial Banking
All ques. carry five marks every.
Q.1 explain the various phases of commercial banking in India.
Q.2 explain the consequence of Lowering the Cash Reserve Ratio on liquidity management and the impact on the economy.
Q.3 If the capital adequacy of a bank is 10%, capital is Rs600 crore, and avg. risk weight is 70%, elaborate the total assets of the bank?
Q.4 explain the guidelines issued by RBI for managing the Interest rate risk by highlighting the importance of Gap analysis.
Q.5 Whether ATMs should be installed in rural areas. Spell out a cost-benefit analysis for this purpose.
Q.6 learn the caselet and ans the ques. at the end: RBI is the regulator of money market and it makes use of its quantitative tools as well as qualitative tools with a view to bring modifications in the monetary environment leading to better growth rates of the economy and also to keep inflation under check. In the era of shortages and issues with the real economy during early 80s and 90s, there was need for RBI to decrease the SLR and CRR, so that adequate funds were available to the productive sectors of the economy to improve the efficiency and lead to higher GDP rates. With the availability of cheap funds to the corporate sector from different avenues such as capital market, other intermediaries in the money market and from abroad in the form of ECBs, enabling them to decrease their dependence on the banking system, the banks are already having surplus funds and are facing the issue of deployment.
1. Comment on the efficacy of CRR and SLR impact on the growth rates of the economy.
2. Should CRR and SLR be decreased further? Your ans should be substantiated with reasons.

Earning:   Approval pending.