The following three Fls dominate a local market and their total assets are given below. Institution Bank A Bank B Bank C Asset Size $50 million $60 million $90 million Under the 1982 guidelines, would the Fed approve the merger of Banks A and C? It is likely to approve because it is not a concentrated market. It is unlikely to approve because the post-merger HHI has increased by over 100. It is likely to approve because the post-merger HHI has increased by over 100. O Likely to approve because the post-merger HHI has increased by less than 5,000. It is unlikely to approve because the post-merger HHI has increased by an amount over 5,000.
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- A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger.Q1. Ecobank has decided to enter the microfinance market to seek more favourable growth and profit opportunities. After extensive search of a large number of potential candidates to merge with, it narrowed the candidates down to Sika Savings. As a financial analyst for Ecobank, you have been asked to investigate the merger with Sika in order to advise management. Some basic data gathered about the two institutions and presented to you are provided in the table below: Ecobank Sika Earning Per Share ¢5.00 ¢1.50 Share Price ¢90.00 ¢20.00 Number of Shares 1000,000 600,000 Price Earning Multiple 18x 13.33x Further investigations conducted revealed that investors currently expect a steady compound growth of about 6% each year in Sika’s…International integration in capital markets: 1. Started with the Bretton Woods agreements but then decreased after 1971. 2. Was prohibited by GATT since 1950. 3. Mainly increased since the 1970s. 4. Decreased up to today from their high levels in the early 1950s. 5. Increased, but only after 2000 and not before O 1 4 5.
- 6. Why are mergers of large banks located in different geographic regions more likely to be approved than mergers of smaller banks located in the same region?Suppose the population of Area Y is relatively young, and the population of Area O is relativelyold, but everything else about the two areas is the same.a. Would interest rates likely be the same or different in the two areas? Explain.b. Would a trend toward nationwide branching by banks and the development of nationwidediversified financial corporations affect your answer to part a? Explain.Below is the balance sheet for Longhorn Bank, a private bank. As a commercial bank, Longhorn Bank faces a 10% reserve requirement. This scenario applies to the questions 34 - 38. ASSETS LIABILITIES Customer Reserves deposits $1,000,000 $150,000 Loans to households and biz $850,000
- A bank charter would have greater value if: I. There were more activities in which the bank could engage II. Capital adequacy requirements increased by 20%III. Reserve requirements increased by 20%IV. There were additional restrictions on new bank charters A. I only B. I and II only C. III and IV only D. I and IV only E. II and III onlyThe Financial Markets in Zambia have experienced mergers and acquisitions in the recent past years. In February 2021, the management of Access Bank Plc made a statement that the Zambian subsidiary had completed the acquisition of Cavmont Bank Limited upon acquisition the fulfillment of key conditions, including regulatory approvals. Access management projected the merger as a strong and well-capitalized banking franchise that will scale and improve capacity to deliver sustainable and best-in-class financial services in the Zambian market. Access Bank plc, commonly known as Access Bank, is a Nigerian multinational commercial bank, owned by Access Bank Group.Another merger took place in 2016 as reported in the Times of Zambia. ATLAS Mara Limited acquired Finance Bank Zambia (FBZ), to merge with Banc ABC Zambia and create one of the largest banks in the country. The merger was completed on June 30, 2016.The Managing Director, Mr Benjamin Vitalo, affirmed the merger objective “The…A. What is a multinational corporation? Why do firms expand into other countries? B. Discuss at least six major factors which distinguish multinational financial management from financial management as practiced by a purely domestic firm. (Please consider doing additional research on this question and document your findings). C. Discuss exchange rate risk as they relate to multinational corporations. D. Describe the current International Monetary System. How does the current system differ from the system that was in place prior to August 1971? (Please consider doing additional research on this question and document your findings). E. What is the difference between spot rates and forward rates? When is the forward rate at a premium to the spot rate? At a discount? (Please consider doing additional research on this question and document your findings). F. From a managerial point of view, disc
- Which of the following actions could be used to resolve the too-big-to-fail problem? A. Force large banks to merge B. Repeal the Dodd-Frank regulations C. Encourage branch banking D. Require large banks to hold higher reservesOne of the most important structural changes affecting the banking community in Ghana is the drivetowards consolidation. Discuss three benefits of this move to the Ghanaian economy.(You answer should not exceed 600 words)If a bank has a positive interest-sensitive gap, one of the possible management responses would be to: wait for the interest rates to rise or be shorten asset decrease interest-sensitive increase interest-sensitive The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. What will be the bank's earning assets total? $4,717 million $3,602 million $1,115 million $3,790 million The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent what is this bank's new net interest margin? 83 percent 09 percent 59 percent 38 percent If Fifth National Bank's asset duration exceeds its…