Question: Question 1 (suggested time allocation: 20-30 mins) The interview starts with questions intended to get an idea of the depth of your understanding of various

Question 1 (suggested time allocation: 20-30 mins)

The interview starts with questions intended to get an idea of the depth of your understanding of various risks that financial institutions may be exposed to. To do that, you are provided with the following real-world scenarios:

Scenario #1: Zelo's Enterprises had been promised a loan of $5m by QBank. Qbank issues 3-year NCDs to do so and lends the proceeds for 5 years at a fixed rate of 6%pa.

Scenario #2: Medibank Insurance Ltd decides to invest $5m of its recently collected premiums in a 5-year BigW bond.

Scenario #3: BBank expects that the next increase in RBA's cash rate will result in a net deposit drain of 0.3% of its total deposits.

Scenario #4: An increase in CAR is on the horizon. SydneyBank had recently repurchased 10% of its ordinary shares.

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