- Secure Payment Guarantee
Explain how the interest rate risk and liquidity risk influence the bank’s profitability over the last five years. -e.g.- impact of interest rate on bank’s net interest margin, net liquidity position
LOC3e: Numeracy Skill
CLO4: Demonstrate the ability to calculate, present and interpret numerical data in analyzing
This assignment requires each group of FIVE students to summarize risk exposures and risk
management practices of the banks.
- The paper must be typed-written using Word with font size of 12, Times New Roman and
- The report should be arranged according to the following sequence:
- Cover Page (please include your group number, class A or C, names, and matric
- Report (should not exceed 10 pages)
- Appendices (if any)
- Marking criteria: Rubric LOC3e Numeracy Skills. Please make sure that you fulfil all the
5 attributes under Numeracy Skills in this rubric to avoid losing marks.
- Citation: Please use APA 7
th style in your citation. Please refer to the citation guide
- Please submit the assignment in PDF format and excel file (with function) to UUMOL.
- Plagiarism: Maximum 20% similarity on Turnitin is allowed.
This assignment requires each group of FIVE students to discuss risk exposures and risk
management approach of TWO banks in Malaysia (Banks chose in Assignment 1).
- Briefly discuss the interest rate risk and liquidity risk for the chosen banks.
- Explain how the interest rate risk and liquidity risk influence the bank’s profitability over
the last five years. (e.g.: impact of interest rate on bank’s net interest margin, net liquidity
- Discuss how the interest rate risk and liquidity risk can be minimized. (e.g.: Interestsensitive gap analysis, estimating liquidity needs of bank with the liquidity indicator
- You need to present your data and results in graphical form.
* All of this information can be found in the annual report, relevant websites, and other
The student must submit the Report by WEEK 13 (30 June 2022, Thursday).
5 marks will be deducted for late submission. No report will be accepted after 5 calendar
days from submission date.
* The total marks for this assignment is 25% and contributes 20% towards the total
weightage of this course.