Question 1 (a) (b) (c) Explain TWO (2) major components of Malaysian Financial System. (8 marks) There are two modes of finance in flow of funds. One is direct finance and the other is indirect finance. Explain these TWO (2) with relevant examples. (8 marks) COVID-19 has generated significant instability and high volatility in global capital markets. While the full impact is yet to be determined, it's expected that the adverse impact are likely to continue from the virus' knock-on effects. As part of our Global banking M&A outlook H2 2020 report, we explore the areas of the overall banking sector most likely to be impacted, including valuation and profitability." - KPMG, July 2020 Referring but not limited to the above insights of KMPG on the impact of COVID 19 on the banking sector, respond to below questions: (i) Explain how financial innovation would help banking sector to move forward with this pandemic crisis. (3 marks) Discuss any THREE (3) approaches adopted by financial institutions in managing credit risk. (6 marks) (ii) (Total: 25 marks) Question 1 (a) (b) (c) Explain TWO (2) major components of Malaysian Financial System. (8 marks) There are two modes of finance in flow of funds. One is direct finance and the other is indirect finance. Explain these TWO (2) with relevant examples. (8 marks) COVID-19 has generated significant instability and high volatility in global capital markets. While the full impact is yet to be determined, it's expected that the adverse impact are likely to continue from the virus' knock-on effects. As part of our Global banking M&A outlook H2 2020 report, we explore the areas of the overall banking sector most likely to be impacted, including valuation and profitability." - KPMG, July 2020 Referring but not limited to the above insights of KMPG on the impact of COVID 19 on the banking sector, respond to below questions: (i) Explain how financial innovation would help banking sector to move forward with this pandemic crisis. (3 marks) Discuss any THREE (3) approaches adopted by financial institutions in managing credit risk. (6 marks) (ii) (Total: 25 marks)