Assignment First

本篇澳洲英语语言学论文代写-澳大利亚银行风险管理讲了澳大利亚大型银行机构,即澳大利亚国民银行、澳大利亚联邦银行、澳大利亚和新西兰银行以及西太平洋银行的市场风险度量和管理方法。这是因为澳大利亚的一家小型银行机构Prospect Bank倾向于通过跟随市场风险来控制市场风险。本篇澳洲英语语言学论文代写由澳洲第一论文 Assignment First辅导网整理,供大家参考阅读。

This certain assignment paper aims to estimate the market risk measurement and management approaches of big-shot Australian banking organizations namely National Australia Bank, Commonwealth Bank of Australia, Australia and New Zealand Bank and Westpac Bank. It is because Prospect Bank, a small banking institution of Australia is inclined to control market risks by following them (Schlagwein, Thorogood and Willcocks, 2014).

National Australia Bank is regarded as one of the most esteemed banks of Australia and an account of its annual financial report shows the extent of its dedication to the shareholders and the consequences of its market risk (Dell’Ariccia, Laeven and Suarez, 2017).

Commonwealth Bank of Australia enjoys the similar level of eminence and its work area encompasses retail business, institutional banking, wealth management product and services (Commonwealth Bank of Australia, 2017).

Australia and New Zealand Bank is focused on capitalizing commerce, smoothening business, enhancing economic engagement and retaining a viable economic growth.

Westpac Bank is another heavyweight financial institution of Australian nation providing mortgage services and other superior-quality financial services.

2.0 Major Market Risks of the Banks

The term Market Risk could be described as a condition that brings about a situation where the banks face problems. The issues related to spread of credit, equity price, interest rates and changes in the foreign exchange rates, which indicate directly to the momentum of the public market (Dell’Ariccia, Laeven and Suarez, 2017). In order to provide better understanding of the various problems that arise due to different factors that have given in to the rise of market risk are as discussed below in details taking into consideration the four Australian banks – National Australia Bank, Commonwealth Bank, Australia and New Zealand Bank and Westpac Bank.

National Australia Bank: There are different risk factors that have been identified by the bank itself that exist and influence the security and smooth running of the bank. The major market risk factor that was identified by National Australia Bank was the conflicting changes that occurred due to the change in the price of the fair value positioning of the shares of the bank (National Australian Bank, 2017). The change that insisted to occur a position of market was in respect to the change that came up with the extension in the volatility, foreign exchange rates, credit spread and prevalent interest rates of the present market.

Commonwealth Bank: The major market risks that have been bothering the Commonwealth bank arise from the equity risk of the bank. It has been identified that the change in the price of the shares and the loss of fair price equity in the present market also poses different aspects that cause market risk to the banks. Moreover, the change in the interest rates, shares and commodities and credit spreads have an adverse effect on the gain in profitability of the banks. The above mentioned elements act as the major underlying effects that pose a situation of market risk for the bank (Commonwealth Bank of Australia, 2017).

Australia and New Zealand Bank: The various factors that have been market as the elements that cause a situation of market risk in the Australia and New Zealand bank were – the sum of the volatility, credit spreads, foreign exchange rates, fluctuations in the bond and the changes in the commodity prices. The summation of the market risk calculation does not include the risks that arise from the correlation from the insurance and fund management techniques adopted by the bank (Australia and New Zealand Bank, 2017). The previously mentioned aspects are the similar elements that give in to the accretion of market risk.

Westpac Bank: There are various market risks that have been identified by the Westpac bank and have taken up certain preventive measures in order to solve the problems in a short time. As already known, market risks are subject to the changes in the volatility, interest rates, commodity prices and foreign exchange (Akhter and Daly, 2017). The major elements that could be highlighted, as providing a backdrop to the different elements of market risks are – the trading value and the non trading value. The various constituent elements of the trading and non trading values have been inculcating to pose a serious market risk issue on the Westpac bank in Australia.