No part of this assignment has been written for me/us by any

Student 1 Student 2 Student 3 Student 4 Student 5 Student ID Number(s) 100771212 Family Name(s) Smith Tracey Given name (s) Lauren Tran SUBJECT DETAILS Subject Code FIN20012 Subject Title Financial Markets Lecturer’s/Tutor’s Name Dr. Sarod Khandaker Tute/Lab day & time ASSIGNMENT DETAILS Title or Topic Addressed Business Research Report – Group Post-GFC reforms and the Australian financial market Due Date 09/02/2017 Date Received DECLARATION 1. I/We hold a photocopy or electronic copy of this assignment which can be produced if the original is lost/damaged; 2. To the best of my/our belief, no part of this assignment has been copied from any other student’s work or from any other source except where acknowledgement is made in the text; 3. No part of this assignment has been written for me/us by any other person except where such collaboration has been authorised by the lecturer concerned and where acknowledgement is made in the text; 4. No part of this assignment has been previously submitted as an assessable item, except where authorised by the lecturer concerned and where acknowledgement is made in the text; 5. SAFE ASSIGN: For units where Safe Assign facility is available in the Blackboard site 1/we declare that this assignment has been submitted to Safe Assign (as specified in the unit outline) and all identified matches and referencing have been checked and corrected. 1 I / We accept that electronic submission of this cover sheet will be taken as consent to the terms outlined in Points 1 to 5 of the above declaration by the student/s submitting this assignment. Student Signature(s) Lauren Smith MARKER’S MAIN COMMENTS Marker’s Signature Date Grade/Mark Business Research Report Post-GFC reforms and the Australian financial market Lauren Smith & Tracey Tran Word Count: Table of Contents *** to be completed once headings are correct** Background Throughout history there have been many major financial breaking points that have effected individuals, the economy and the entirety of systemised financial markets – The Global Financial Crisis (GFC) was no acceptation to this. The GFC was one of the biggest economic downturns in the 21st century (Friedman & Friedman 2009) and affected many people on a global scale. The GFC was a problem that came to the forefront in 2007-2008 when stock prices were at an all-time high and interest rates were low. The problem was a result of demonetised legislation and large government trust in financial institutions to act ethically and responsibly (Friedman & Friedman 2009). The issue stemmed from bad financial investments by large companies such as Lehman Brothers and Merrill Lynch. This resulted in the Federal Reserve of America attempting to bail out these companies. However, as issues arose so did the underlying problem regarding lending guidelines. The level of bad residential debt was soring and financial intuitions particularly in the US had limited equity to operate if housing prices began to drop (Friedman & Friedman 2009). At the time of the initial financial crisis the US was predominately effected as the New York Stock Exchange dropped over 4% (Friedman & Friedman 2009) in a short period of time. This meant that investors globally withdrew a lot of funding from the stock exchanged and thus resulted in a systematic global financial crisis. This became a ripple effect throughout the globe which inevitably effected the Australian financial market in a number of ways. Scope This report will shed light on the historical and recent effects the GFC has had on the Australian Financial Market. The Australian Financial Market was formed in 1986 (Afma.com.au. 2018) and is made up of capital, credit, derivatives, foreign exchange and other specialist markets (Afma.com.au. 2018). The Australian financial market is at the cusp of our economy and needs to be running effectively to ensure individuals can sustain their reality. At the centre of the Australian Financial market is the Banking Sector (Viney & Phillips, 2015). Throughout the historical and current financial system four major banks have played a dramatic part in making sure our economy is funded. This report will demonstrate the need for the banking sector in Australia and in particular the effect that the GFC had on banking capital. Capital adequacy is the statutory minimum reserves of capital which a bank or other financial institution must have available (Capital Adequacy, 2016). The report will discuss these levels pre-GFC and now, and what methods have been applied to improve this issue. The report will also provide a summary of the advancements the banking sector and legislators have had to make to ensure that a GFC is less likely to happen in the future. We will be discussing the methodology applied to the study and findings supporting this methodology. The report will aim to provide a substantiated review of the Australian Financial Market post GFC, and show that changes were necessary to improve the capital in the Australian banking sector for a more stable future. Sources of Data The methodology is a theoretical and systematic analysis of the methods that have been applied for conducting research. Investigation of given topic regarding Australian financial market post-global financial crisis (GFC) reform is done by selecting a particular theme. For this specific study, information on capital adequacy could not be found. Hence researcher has gathered information and data on capital concerning primary and secondary market activity (Afma.com.au 2018). Information has been obtained on turnover of an average capital market, equity trading and bonds and hybrid market as well. For the success of any research, a collection of data is regarded as an elementary tool that is categorized into primary and secondary data. Data, whether they are primary or secondary, are of utmost importance for conducting any research. Secondary data are gathered from secondary sources such as newspaper article, websites, and reports published by financial authority (Ralston and Jenkinson 2014). Types of data that have been gathered here are of capital that is raised from cash, a listing of companies on Australian stock exchange in the year 2016, equity trading on a stock exchange, turnover as a percentage of the average capital market and on bonds and hybrid. Data collected are for three years ranging from 2013-2014 to 2015-2016. Hybrid and bonds incorporate data on Australian government bond, corporate bond using a fixed rate, corporate bond using floating rate, convertible notes and preference shares (Imf.org 2018). All these data have been gathered after the reforms of GFC. In this research, data on capital for both primary and secondary market along with hybrid market are collected from secondary sources. Data gathered here are of quantitative that are used by research to get an accurate result of research. Researcher in this analysis is performing quantitative analysis of the significant amount of data collected from the secondary source. Such data has assisted the researcher in ascertaining total trades performed in Australian financial market. Secondary data have been collected from several sources that indicate that research concerning topic has been already performed and the information is presented on official websites, journals, and news articles. Quantitative data have been gathered from reports published by Australian financial market in the year 2016. In this section of research methodology, analysis of secondary data collected from secondary sources has been performed using some techniques and analytical tools. Any research requires practical implementation of procedures for investigating. Review of information and data have been done using Microsoft excel sheet. Data gathered will be analyzed to make comparison by identifying the trend and creating charts and graphs. The market capitalization of the total financial sector can be interpreted by forming patterns that will facilitate comparison throughout the analysis. For the ease of understanding, formation and g
raphs are considered suitable. Analysis of data has been done to review the regulatory landscape to avoid unnecessary capital fragmentation. Findings Should be about 10-12 pages. Try to include relevant content only. You should describe them as you go along. Overview of Risk – Lauren Capital Raising – Lauren Risk Management – Tracey Capital Adequacy – Tracey Conclusion Lauren & Tracey – Give a 2-3 page summary of your study, and concluding remarks. Do NOT mention anything that does not flow from your findings. References Afma.com.au. 2018. [online] Available at: https://afma.com.au/data/afmr/2016%20AFMR.pdf [Accessed 10 Jan. 2018]. Apec.org.au.2018.[online]Available at: http://www.apec.org.au/docs/11_con_gfc/regulatory%20reform%20post%20gfc-%20overview%20paper.pdf [Accessed 10 Jan. 2018]. Imf.org. 2018. [online] Available at: https://www.imf.org/external/pubs/ft/wp/2014/wp1446.pdf [Accessed 10 Jan. 2018]. Ralston, D. and Jenkinson, M., 2014. International linkages: Financial markets and technology. JASSA, (4), p.14. Capital Adequacy, 2016, Investopedia, viewed 13 January 2018, . Viney, C & Phillips, P 2015, Financial institutions, Instruments and Markets, 8th Edition. Friedman, H. and Friedman, L. (2009). The Global Financial Crisis of 2008: What Went Wrong?. SSRN Electronic Journal. Appendix – Standard Process

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