Question: Question 1 You work as a treasury executive in WT bank in Malaysia, your superior Mr Danny is requesting you to analyse the following conditions

Question 1

You work as a treasury executive in WT bank in Malaysia, your superior Mr Danny is requesting you to analyse the following conditions that may influence your bank's performance. Currently, your bank attempts to use diversification and monitoring strategies to mitigate the riskiness of loans and investments that offering to the public. Besides that, in the process of asset transformation, your bank is emphasized on liquidity management and engaged with insurance companies to cover financial assets under their administration. Your bank has a professional risk management team who are responsible to evaluate risk of borrower and determine price should pay to the fund's depositors.

Condition 1: The credit crunch originating in the mortgage markets in Malaysia hurt your bank.

Condition 2: Customers who deposit their funds are giving good and bad comments for your asset transformation strategy.

Required:

(a)Under condition 1, analyse how the credit crunch hurt your bank even though the above mentioned strategies are implemented?(10 marks)

Under condition 2, analyse what are the benefits and drawbacks for customer who choose to deposit their funds in your bank?

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