Treasury Management in Banking NMIMS solve assignment December 2024

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Treasury Management in Banking
Internal Assignment Applicable for December 2024 Examination
Assignment Marks: 30
Instructions:
• All Questions carry equal marks.
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
• Students should write the assignment in their own words. Copying of assignments from other students is not allowed.
• Students should follow the following parameter for answering the assignment questions.
1. In March 2022, major Central Banks worldwide started increasing interest rates resulting in higher Treasury Bill yields and failure of few banks in US (due to selling of Assets to meet liquidity). Explain the role Treasury Policies & ALCO for liquidity management?
(10 Marks)
2. A British MNC in India want to move their Corporate Treasury to Head Office in London for better liquidity management. Explain what are the considerations when choosing the location to setup a Corporate Treasury office? (10 Marks)
3. In view of settlement risk and increasing interest rates, explain the following:
a. What is Herstatt risk? (5 Marks)
b. How Assets and Liabilities are considered Rate Sensitive? (5 Marks)
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