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Question 1
On 1 April 2014, Singapore's OCBC Bank announced its offer to acquire all the issued shares of Wing Hang Bank Limited in Hong Kong at a price of HK$125 per share. Wing Hang Bank was the 4th largest mid-sized bank in Hong Kong by gross loans at the time, and its strengths
lay in SME, automobile and equipment financing, and mortgage and tax loans. Wing Hang Bank also owned a network of branches both in Macau and mainland China which OCBC Bank had hoped to leverage on to deepen OCBC's presence in the Greater China region.

The acquisition was completed in July at $6.23 billion Singapore Dollars, and on 1 October 2014, Wing Hang Bank was rebranded as OCBC Wing Hang to reflect its integration into the OCBC group.

Identify at least four (4) financial risks faced by OCBC Bank group that might be impacted by the acquisition. For each risk, assess the possible impact and appraise strategies for measurement and management of such risks.

Question 2

(a) Below is a table extracted from OCBC Bank's annual report 2014.

See attached file for table.

Discuss three (3) different methods to calculate VaR (Value at Risk) and analyse the difference in their assumptions.

(b) Below is a table extracted from DBS Bank's annual report 2014.

See attached file for table.

Analyse the TVaR (or "Tail VaR") model DBS employs, and assess its strengths and/or weaknesses compared to VaR model.

Attachment:- -Assignment-.rar

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92003925

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