BFF2401 Commercial Banking and Finance
Written Assignment (10%)
Semester 2, 2019
Due date: Tuesday 24th September 2019, before 11AM (Week 9)
This individual assessment task is designed to test a student’s achievement of objectives 1-6.
The total mark is 20 marks (weight: 10% of total assessment). Word limit: 1,200 words
(±10%), excluding references and appendices.
Topic: Banks’ liquidity and liability management
Following the 2008 Global Financial Crisis, Australian banks have shifted towards more
stable sources of funding.
a. Detail two (2) examples of “stable funding”. Discuss the risk-return trade-off in the
choice between stable versus non-stable funding sources.
Guide: 300 words, 6 marks.
b. Choose one type of banks’ non-equity stable funding, and find annual (yearly) data to
calculate and graph the percentage of this liability source for the top four Australian
banks over 2012-2018. Conduct trend and peer analyses based on your graph, and
provide insights into these banks’ funding strategies.
Guide: 400 words, 8 marks. Your graph must be shown alongside your discussion,
while your data and calculated ratios must be shown in the appendix.
c. Explain how the Net Stable Funding Ratio introduced by the Basel III framework
helps banks manage their liquidity and funding risk exposure more effectively.
Guide: 300 words, 6 marks.
Note: Approximately 200 words are recommended for introduction and conclusion
together. Subheadings should be used to separate parts a, b and c.
Suggested data source for part b: Orbis Bank Focus database (access via Monash library
database website, under the “Banking and Finance” tab) or banks’ annual reports published
on their website.
Instructions to students
You are required to retain a copy of the assignment until results are finalised.
Any query by email must be sent from your Monash student email address
<Your.Name>@student.monash.edu. Any other email addresses will not be accepted.
Work submitted for assessment must be consistent with the guidelines set down in the Q
Manual, which is the faculty’s student guide for producing quality work on time. Copies of
this manual can be purchased at the bookshop or accessed online at:
Chapter 3 of the Q-Manual provides instructions on how to properly cite and list references
for an assignment.
Faculty style guide
Work submitted for this assessment must follow the ESSAY style as outlined in the Faculty
Estimated return date
UPDATE (27/08/2019): Assignments will be graded online. Marks and feedback will be
available on Moodle in week 11 or 12.
In order to ensure the academic integrity of your submission and to deter others from copying
your work, your submission may be processed by text matching software such as Turnitin.
For additional information, the University’s Student Academic Integrity Policy can be found
Criteria for marking
Overall, the work submitted for assessment will be graded in accord with the table showing
examples of grades and corresponding achievement levels published in the Q Manual (2012,
Submission date and time
The due date of the assignment is Tuesday 24th September 2019, before 11AM (Week 9).
UPDATE (27/08/2019): Hard copy submissions are no longer required as per the faculty’s
new submission policy. All assignments are now submitted online via Turnitin (link to be
posted under the “Individual Assignment” section), as detailed below.
Online submission: The online submission via Turnitin has TWO parts,
• Part 1 for the completed coversheet file (template available on Moodle), and
• Part 2 for the assignment file (.docx).
IMPORTANT: You are allowed to resubmit your assignment via Turnitin as often as
you wish until the assignment due date. A similarity report of around 15-20% is
generally acceptable, anything above this threshold will be investigated, penalised, or
failed depending on the nature of similarity.
The name of your .docx file should conform to the following format:
• S219 – Your First name and Last name and Student ID – Tutorial day and time – Your
tutor’s First name and Last name.
For example: S219 – John Smith 1234567 – Thursday 3PM – Xing Yan
Applications for extension of time
All applications for an extension of the time allocated to an assessment task must be made by
completing the application form. The form together with supporting evidence must be
submitted to the chief examiner for approval no later than 48 hours after the due date.
Penalty for late lodgement
An assessment is late if it is submitted after the due date, or after the extended due date if an
extension has been granted. A penalty of 1 (out of 20) mark will be deducted for each
working day (24 hours) the assignment is late after the due date (based on the 11AM cut-off).
Assignments will NOT be accepted after October 11th 2019.
LATE submission: Late assignments must also be submitted via the same Turnitin link. No
hard copies will be accepted. Late penalties are based on the submission time recorded on
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