Download Financial and Monetary Theories: Topics for report Instruction

1
Financial and Monetary Theories: Topics for report
Instruction: This Project accounts for 10% of total assessment. Students will form groups of 3-4
students. Each group will be assigned a topic to do their project. The accomplishment of the project
includes two tasks:
1. PowerPoint slide: maximum 25 pages, including references
2.
Report: maximum 10 pages excluding appendix and reference pages, Times New Roman 12
font, 1.5 lines spaced.
These two files must be compressed and sent to the tutor’s email before the deadline, specifying the
group’s members name in the email.
Topic 1: A foreign bank is considering opening a branch in Vietnam. As an analyst participating in this
project, your task is to investigate about financial system in Vietnam. Your report must cover all aspects
of financial markets, financial institutions and financial instruments, including regulation and
internationalization. Please emphasize your analysis on typical characteristics of Vietnamese financial
system and make comparisons between VN financial system and other countries financial system to
identify any major similarities and differences.
Topic 2: What are the implications of information asymmetry in financial market (i.e. problems caused
by information asymmetry)? What are the main causes of principal-agent problem? Find a real case in
finance world about principal-agent problem, identify causes, consequences and tools should be used
specifically in the case to address the problem.
Topic 3: You have learned the efficient market hypothesis for stock market and the random walk
behavior of stock prices. Using the information and data on Vietnamese stock market, discuss
- What form of market efficiency the Vietnamese stock market is in,
- Any evidence for the random walk behavior (unpredictable)
- Any evidence against the random walk behavior: are there January effects, small firm effects,…
(You can use the data on stock prices to find a possible pattern of stock index movement)
Topic 4: There are many financial crises occurred during the evolution of financial markets around the
world. Choose one of the recent financial crises (e.g. Financial crisis 2008), examine its cause and effects
2
and lessons learned from the crisis, any effective remedies that have been implemented to correct the
problems revealed from the crisis.
Topic 5: As the managers of a commercial bank, you have to report to the Board of Directors about
interest rates movements in Vietnam in the last 3 years and forecasts for the next year. You are
expected to search necessary information and data about:
- Movements in interest rates in Vietnam in the past 3 years and expected trend next year
- Factors affecting these movements using the Loanable Fund Framework or Liquidity Preference
Framework when applicable.
- Explain how the banking industry has been affected and will be affected due to changes in interest
rates
Topic 6: Conduct a research on the State Bank of Vietnam (SBV): its structure, roles and functions in
Vietnam economy and financial system. What monetary tools that are mostly used and its effectiveness
for the SBV’s goals? What monetary policy goals are set by SBV to be achieved in 2015/2016 and their
forecasted effects on the economy and financial market?
Topic 7: Analyse the case of low inflation and interest rates in United States or European Union. What
are main causes and consequences that this phenomenon might cause to the US/EU economy and the
financial markets (stock and bond)? Are there any lessons for Vietnamese market?
Topic 8: Comparing the importance of financial intermediaries relative to the securities market. Make
comparisons between Vietnam financial market and another country of your choice. Choose a
Vietnamese Company, analyse the sources of fund used by the company and advise on the financing
methods the company should use.
In the lecture of financial structure, you will learn that businesses use direct finance and indirect finance
at different levels to raise funds. As a financial advisor, you are required to discuss about:
-
The overview of direct and indirect finance in Vietnam: financial markets, types of financial
intermediaries, …
-
Compare and contrast direct and indirect finance in Vietnam: advantages and disadvantages by
referring to the 8 financial observations mentioned in chapter 8 and searching necessary
information to analyze whether these financial observations exist in Vietnam.
3
-
Advise a corporate customer (it is up to you to decide the size and capability of this corporate
customer) how to raise funds for its operations: through indirect or direct finance, and explain
why you have chosen that financing method.
Topic 9: Assuming that you are managers of a foreign bank, who is planning to invest in bonds market in
Vietnam. Search necessary information to report to the Board of Directors of the bank about:
- General overview of bonds market in Vietnam
- Types of bonds issued in Vietnam
- Risk structure of interest rates of bond issued in Vietnam
- Term structure of interest rates of bonds issued in Vietnam (i.e.government bond yield curve)
- Recommendations on investment strategies for your bank
Topic 10: As the CFO of a commercial bank, you are required to make a report about foreign exchange
market and foreign exchange rate system in Vietnam.
- Overview
- Exchange rate system in Vietnam, including exchange rate determination
- Factors affecting exchange rate in the long run and in the short run
- Effect of exchange rate movements on Vietnam’s economy
- Central bank’s intervention: What are policies of Central Bank of Vietnam regarding the USD/VND
exchange rate for the last 3 years and next year? Provide evidence on how the central bank of Vietnam
control the foreign exchange market (situation, method, effects)
Topic 11: You are investigating an opportunity to invest in banking industry in Vietnam. Your report to
your boss must include at least the following points:
- Overview of commercial banks’ operations in Vietnam: sources of funds, uses of funds, off balance
sheet transactions
- Search for balance sheets of a commercial bank for last three years:
4

What are major sources of funds, uses of funds for this bank: are there any changes in the
structure overtime and any differences compared to peers or industry average?

Try to find out information about how the bank undertakes asset and liability management (to
mitigate the interest rate risk), liquidity management and capital management.