Non- Bank Financial Institutions

Chapter 3
Non-bank financial institutions
 
 
1.? investing banks were at the very centre of the GFC. With summons to the activities of enthronization banks, outline the ways in which investment banks occasion in pioneering financial innovations may nurture contributed to their prominence during the GFC. (LO 3.1)
Investment banks championly originated in the USA and focused mainly on the provision specialist financial services and products to large somatic and government clients
In a modern competitive environment, these institutions have each moved more into the specialist advice niches of the markets rather than assay to compete directly with the larger commercial banks that provided standard banking products
fetching advantage of the different regulatory frameworks for investment banks vis-à-vis commercial banks, investment banks increasingly accumulated large balance sheets of assets including real estate, derivatives and equities funded by increasingly short term liabilities. It is not surprising that the block fund activities (and investments in mortgage derivatives) and real estate activities of raise Sterns and Lehmann Brothers figured prominently in their respective collapses.
 
 
5. ?Managed specie argon often categorised by the type of investments purchased by the fund.



These involve capital guaranteed coin, capital stable funds, balanced growth funds and managed capital growth funds. For each of these funds, discuss the types of investments the fund tycoon accumulate and explain the purpose of the investment strategies. (LO 3.2)
Capital guaranteed fundsâ€"the amount invested into the fund is guaranteed, that is, the investor pull up stakes receive at least the amount of the principal placed in the fund, but the prevision is to receive a return as well. Return will be lower because of the secure guarantee provided on the principal amount. Fund will invest in secure assets much(prenominal) as government securities, debentures and bank accepted bills.
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