Finance
There are two sections. Submit both within one document.
Section 1
This section is weighted at 50% of marks available for this coursework assignment, contributing a
maximum of 12.5% of the total marks available for this module.
There is one requirement in this section. Your response to the requirement must be between 1,500 and
2,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than
1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to
the requirement in less than 1,500 words.
Context and Requirement Context The series of Basel III regulatory reforms may be viewed as a series of
sets of intentions. Intentions are not always achieved. The latest report of G20 leaders (dated August
2016: http://www.bis.org/bcbs/publ/d377.pdf ) on the implementation of Basel III regulatory reforms reveals
that despite the efforts of banks to build a strong capital buffer, challenges remain. Another report
(http://uk.reuters.com/article/chinabondstlacidUKL3N17S1ME ) reveals serious challenges to aspects of
the China banking industry.
Required
Identify and evaluate arguments in favour of and against capital requirements for the banking industry. In
so doing set your considerations against the backdrops of specific capital requirements, the costbenefit
tradeoffs relating to banking regulations, the business model(s) of banks (especially commercial and
investment banks), and the impact of banking decisions on systemic risk. You should illuminate and enrich
your considerations by drawing on, as appropriate, relevant examples and illustrations.
In responding to this requirement you should certainly refer to relevant Topic 10 study materials, and other
relevant Theme 3 materials as appropriate. You are encouraged to also draw upon other materials, as
appropriate, from journal articles and/or business reports and/or news reports.

Section 2
This section is weighted at 50% of marks available for this coursework assignment, contributing a
maximum of 12.5% of the total marks available for this modu??le.
There is one requirement in this section. Your response to the requirement must be between 1,500 and
2,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than
1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to
the requirement in less than 1,500 words.
Context and Requirement Context Given ongoing global and domestic changes in the economic
environment, perceptions of risk and associated required rates of returns will invariably also change. In
June 2016 the UK voted in a referendum to leave the European Union. (This referendum is often referred
to as the Brexit referendum.) This has resulted in, perhaps predictably, impacts on perceptions of risk and
associated required rates of returns, certainly in the UK, in the wider Europe and, indeed, globally,
requiring central banks to act in particular ways. Such impacts have implications for pension funds and
pensioners, not least in the UK. Illustratively, one report which addresses consequences is: Kao, J. S. and
Authers, J., 2016. Capital Markets, Pensions and bonds: the problem explained, Bond mathematics and
the scale of pension deficits [online]. London: The Financial Times. Available from:
http://ig.ft.com/sites/pensionsinterestratesexplainer [Accessed 1 September 2016].
Required Building upon the ideas, principles and issues relating to risk and required rates of return in
topics 11, 12 and 13, undertake further independent research to enable you to analyse the impact of the
Brexit referendum on pension funds and pensioners in the UK. Your analysis should take account of:
A
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description and explanation of the major actions taken by the Bank of England in the weeks and months
following the UKs decision to leave the European Union.
An evaluation of the impact of the Bank of
Englands actions on the UK pension industry, reflecting i) the obligations of pension funds and ii) required
rates of return for pension funds to meet those obligations.
With reference to investing in real assets, the
impact of Brexit on the required rates of return for pensioners to achieve and maintain an acceptable
standard of living.
In responding to this requirement you should certainly refer to relevant Theme 4 study materials, but as
this requirement involves further independent research building upon the ideas, principles and issues
relating to risk and required rates of return in topics 11, 12 and 13, you should also draw upon other
relevant materials.

FINANCE
Answer the following issue by exploring currency and liquidity risk of portfolio of currencies. Answer is the current diversification of the portfolio appropriate or necessary as only 10% of SBE’s production comes from foreign production. Also the company plans on going public in a year so answer if the current situation is ideal or does it need to be adjusted from current market conditions and/or future expectations, and if any adjustments are needed, what are the adjustments to be made?

Given its involvement in other parts of the world, SBE maintains a portfolio of currencies. This portfolio accounts for approximately 40% of SBE’s liquidity. This portfolio consists of: 20% CAD; 20% NOK; 20% AUD; 10% EUR; 10% GBP; 10% JPY; and 10% other. Mevak has insisted that this portfolio is necessary to offset the weak USD. 10% of SBE’s production comes from foreign production.

Use as many or less sources you need to convey the point.

FINANCE
Answer the following issue by exploring currency and liquidity risk of portfolio of currencies. Answer is the current diversification of the portfolio appropriate or necessary as only 10% of SBE’s production comes from foreign production. Also the company plans on going public in a year so answer if the current situation is ideal or does it need to be adjusted from current market conditions and/or future expectations, and if any adjustments are needed, what are the adjustments to be made?

Given its involvement in other parts of the world, SBE maintains a portfolio of currencies. This portfolio accounts for approximately 40% of SBE’s liquidity. This portfolio consists of: 20% CAD; 20% NOK; 20% AUD; 10% EUR; 10% GBP; 10% JPY; and 10% other. Mevak has insisted that this portfolio is necessary to offset the weak USD. 10% of SBE’s production comes from foreign production.

Use as many or less sources you need to convey the point.