Section 1 Conversations(共10题,共10分)
A、It is offered to enterprises only.
B、It is offered to government-affiliated institutions only.
C、It aims at a win-win bank-customer relationship.
D、It is characterized by the provision of single product.
C、Both A and B.
D、None of the above.
D、Foreign government bond.
A、Signing contract without authorization.
B、Customers’ inability to repay principal and interest.
C、Interest rate change.
D、Fluctuation of FX.
A、Stand-by letter of credit acts as an instrument of security.
B、According to US banking law, US banks can not issue letters of credit.
C、Banks in other countries can also issue or accept stand-by letters of credit.
D、The structure of a stand-by letter of credit looks like a traditional letter of credit.
A、Clarifying market discipline.
B、Enhancing risk disclosures.
C、Addressing the weaknesses in risk governance.
D、Containing supervisory expectations for risk governance.
A、To transfer some money.
B、To exchange some money.
C、To deposit some money.
D、To remit some money.
A、Maintaining growth momentum.
B、Boosting domestic demand.
C、Developing emerging industries.
D、Promoting structural reform and economic transformation.
A、Ability of bank personnel.
C、Stability of deposits.
D、Types of loans.
Section 2 Short Passages(共3题,共10分)
A、To describe some of the functions of banks.
B、To explain why banks charge interest on loans.
C、To compare banks with other financial institutions.
D、To outline the history of bank failures.
A、To purchase a house.
B、To buy a car.
C、To pay for education.
D、All of the above.
A、By paying fewer taxes than other businesses.
B、By selling ideas and products to the government.
C、By collecting more interest than they pay out .
D、By lending money only to large corporations.
A、China’s economic development achievements.
B、The world economy in developed countries.
C、China’s efforts on maintaining rapid growth.
D、Rapid economic growth in emerging countries.
A、The global economy is declining.
B、The economy in middle and lower income countries is sluggish.
C、China is deepening its economic reform.
D、China is opening wider to the outside world.
A、 Decreased poverty population, 10% annual economic growth, and increased per capita GDP.
B、Investment and export growth, 10% annual economic growth, and per capita GDP.
C、Increased per capita GDP and 10% economic growth per year.
D、10% annual economic growth, decreased poverty population, and increased presence in global governance.
A、Government officials, finance experts, and distinguished guests.
B、Officials, scholars, and distinguished guests.
C、Provincial officials, field experts, and distinguished guests.
D、Central government officials, finance researchers, and distinguished guests.
A、The role of China's financial sector in promoting more balanced and sustainable growth.
B、Implications of China's economic transformation for investors and policy-makers.
C、China's economic transformation in promoting sustainable economic growth.
D、China's financial sector reform and the future of the global economy.
A、To enhance investors' oversight.
B、To improve internal risk management.
C、To acquire foreign strategic partners.
D、To implement best industrial practices.
A、Its equity platform ranks No. 6 across the globe.
B、Its financial infrastructure is globally competitive.
C、Its equity platform enables shares tradable.
D、Its trading platforms are critically important to global equity markets.
Section 3 Single-Answer Questions(共50题,共25分)
14.(0.5分)Which of the following is NOT an interest income service?
A、Credit card overdraws.
B、Car consumer credit.
C、Housing mortgage loans.
15.(0.5分)Which of the following countries is the country that first established the central banking system?
16.(0.5分)Before opening a credit, the issuing bank should ______.
A、go through the contract terms
B、fill in the application
C、sign a security agreement with the customer
D、inquire into the customer’s credit standing
17.(0.5分)Which of the following is the definition of "liquidity ratio" in credit planning?
A、The proportion of a financial institution's assets held in easily cashable form.
B、The maximum amount of money a bank will lend to an individual or a business entity without requiring additional approval.
C、The degree to which an asset can be bought or sold in the market without affecting the asset's price.
D、An accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet.
18.(0.5分)The main difference between forward and spot transaction is _____.
A、the delivery date
D、the transaction place
19.(0.5分)To the exporter, the fastest and safest method of settlement is _____.
A、letter of credit
20.(0.5分)According to Basel Accord, the adequate capital is required for commercial banks ____.
A、to gain profit
B、to provide loans to the public
C、to bear risk and absorb losses
D、to maintain liquidity
21.(0.5分)In evaluating a charter application, the chartering authorities generally consider all of the following EXCEPT _____.
A、the uniqueness of the services offered
B、the bank's prospects for future earnings
C、the qualifications of the bank's proposed management
D、the convenience of and needs of the community to be served by the bank
22.(0.5分)The main purpose for a country to hold international reserves is to _____.
A、maintain international payment capability
B、protect the country’s international reputation
C、support the country’s currency exchange rates
D、gain a competitive benefit
23.(0.5分)Before acceptance, the _____ of a time draft has primary liability to pay.
24.(0.5分)_____ is an investment banking business where banks build an asset pool and transform the assets into more liquid securities through portfolio restructuring and risk insulation.
25.(0.5分)Which one of the following is part of on-balance-sheet business?
26.(0.5分)Stored value card is similar to a _____ in which the card issuing bank stores money as required by the card holder and the underlying account is debited upon consumption.
A、credit line facility
27.(0.5分)Which of the following is NOT a function of money?
A、Medium of exchange.
B、Unit of account.
C、Store of value.
D、A double coincidence of wants.
28.(0.5分)The depositor for RMB education deposit must provide identity proof as being ______.
A、a student going to college
B、a student for non-compulsory education
C、a student for compulsory education
D、a government sponsored student
29.(0.5分)The typical general procedures for real-time giro service in fund transfer including the client filling in a remittance application form with such information as the destination country and the name of the _____ in English.
30.(0.5分)Personal loan business started in China in the 1990s and has become a strategic driver for _____ banking and its profit growth.
31.(0.5分)Commercial banks must enhance the examination of the application information of designated merchants to ensure their _____.
32.(0.5分)In China, A money brokerage firm shall meet the following requirements EXCEPT _____.
A、the minimum registered capital
B、the senior management qualification
C、staff gender composition
33.(0.5分)A microcredit company shall not engage in _____.
D、taking public deposit
34.(0.5分)From the perspective of the size of transaction, the banking business offered to individuals are probably referred to as_____ business.
35.(0.5分)What is the minimum registered capital requirement in China for finance companies engaged in member companies’ leasing business?
36.(0.5分)Which of the following in regard to interest rate swaps and currency swaps is least likely to be correct?
A、A plain-vanilla interest rate swap involves trading fixed interest rate payments for floating-rate payments.
B、A fixed-for-floating currency swap involves trading floating-rate interest payments on one currency for fixed-rate interest payments on another currency.
C、In a currency swap,the net difference between the notional principal amounts is exchanged at the beginning and termination of the swap. Full interest rate payments are exchanged on each settlement date.
D、None of the above.
37.(0.5分)To reduce losses from credit card business-related risks, card issuing institutions and commercial banks should build their own database related to _____ card holders.
38.(0.5分)_____ is mainly to fill the financial gap in fixed asset building extension or renovation, development and purchase.
B、Line of credit
D、Working capital loan
39.(0.5分)Which of the following ways is a popular short-term financing alternative to a small enterprise?
40.(0.5分)The fine-tuning monetary policy instrument is _____.
A、open market operations
D、required reserve ratio
41.(0.5分)For securitization, which of the following is NOT considered to be the disadvantages to an issuer?
A、Reduction of portfolio quality.
B、Increase in funding cost.
42.(0.5分)Which of the following statement best describes a nation’s central bank ?
A、Responsibility for monetary policy/money supply.
C、Keeping the country out of debt.
D、Helping people in need.
43.(0.5分)Commercial paper is a short-term security issued by ________ to raise funds.
A、the Central Bank
C、large, well-known companies
D、state and local governments
44.(0.5分)_____ is the monetary policy makers and implementers.
A、The Central Government
C、The Ministry of Finance
D、The Central Bank
45.(0.5分)_____ is viewed as the most important principle of banking management in international banking industry.
46.(0.5分)The letter C in CARPALs system means_________ .
47.(0.5分)For regulatory and internal management purpose, capital is defined as the following items EXCEPT_________ .
A、tire 1 capital
48.(0.5分)The net interest margin of a bank is influenced by __________.
A、changes in the level of interest rates
B、changes in the volume of interest-bearing assets and interest-bearing liabilities
C、changes in the mix of assets and liabilities in the bank's portfolio
D、all of the above
49.(0.5分)The asset of a trust company may come from __________.
A、the single fund trust
B、the assembled funds trust
C、the property management trust
D、all of the above
50.(0.5分)Costs of credit card business include the following items EXCEPT _________.
D、installed commission fee
51.(0.5分)_____refers to the financing and lending market with short-term financial instruments.
C、Foreign exchange market
52.(0.5分)The short-term financing bills introduced in 2005 are one of the successful examples of the PBC to expand _____in the new macro-financial situation.
A、indirect financing channels
B、direct financing channels
53.(0.5分)The issuing interest rate of the short-term financing bill is determined by the _____.
B、market bidding mechanism
D、none of the above
54.(0.5分)Currently, the _____ market takes the lion share of China's bill market.
D、none of the above
55.(0.5分)Trading varieties in the Shanghai Stock Exchange and the Shenzhen Stock Exchange includes all of the following EXCEPT_____.
A、subprime mortgage bonds
56.(0.5分)Which of the following is TRUE of "writing-off bad loans"?
A、An internal activity of a particular bank.
B、An external activity of the banking sector.
C、An activity enforced by the banking regulatory authority.
D、An activity influenced by the State Council.
57.(0.5分)For customers, the difference between a debit card and a credit card is that the debit card deducts the balance from a _____ account, whereas the credit card allows the consumer to spend money on credit.
58.(0.5分)BOT is an abbreviated form of _____.
59.(0.5分)Under a fixed exchange rate system and freely flowing capital, _____.
A、fiscal policy is ineffective
B、monetary policy is very effective
C、the supply of money is very important
D、monetary policy is ineffective
60.(0.5分)All of the following are the features of preferred stock EXCEPT _____.
A、Preferred stockholders hold a claim on assets that has priority over the claims of common bondholders but after that of common shareholders
B、Preferred stockholders receive a fixed dividend
C、The price of preferred stock is relatively stable
D、Preferred stockholders do not usually vote unless the firm has failed to pay promised dividend
61.(0.5分)The Basel Committee on Banking Supervision made significant amendments to BASEL Ⅱ,upgraded the computational method of risk-weighted assets and raised the _____ requirement on high-risk business.
62.(0.5分)_____ consists of the simultaneous sale and purchase of currency.
63.(0.5分)In China and most other countries in the world, personal loans are a financial facility mainly to support ______.
A、consumption by individuals
B、consumption by eligible entities
Section 4 Multiple-Answer Questions(共10题,共10分)
64.(1分)For operational risk, there are many types of risk factors including _____.（ ）。
E、marketing interest rate
65.(1分)Which of the following documents the exporter should submit to the bank for applying for a packing loan?（ ）。
C、Original letter of credit.
D、Bill of lading.
66.(1分)The commonly used letters of guarantee include_____.（ ）。
C、payment and Advance Payment Bond
E、deferred payment board
67.(1分)Which of the following are the basic characteristics of money market securities?（ ）。
A、Sold in large denominations.
B、Low default risk.
C、Maturity in one year or less from their original issue date.
68.(1分)According to the causes of inflation, what types of inflation are there?（ ）。
A、Demand pull inflation.
B、Cost push inflation.
69.(1分)Which of the following are the factors affecting choice of investment securities?（ ）。
A、Expected rate of return.
C、Interest rate risks.
70.(1分)Which of the following are the criteria for an effective intermediate target?（ ）。
C、Importance or interrelation with the final targets.
71.(1分)Richard has a put option to sell a share of Microsoft at 120 USD. So the 120 USD is the price of the option.（ ）。
72.(1分)A trust-preferred security is a security possessing characteristics of _____.（ ）。
73.(1分)Anti-money Laundering laws and regulations prevent the concealing and hiding of the source and nature of criminal earnings from________.（ ）。
Section 5 Cloze(共2题,共10分)
Separate insurance contracts (i.e. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be （ 1 ）from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.
Toward the end of the seventeenth century, the growing importance of London as a center for trade led to rising demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house which became a popular（ 2 ）of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to（ 3 ）cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the（ 4 ）of this disaster Nicholas Barbon opened an office to insure buildings. In 1680 he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes.
Nowadays a wide variety of insurance contracts is （ 5 ）: transportation insurance, property insurance, pecuniary insurance, other liability insurance and personal and long-term insurance.
1、 A. prevented B. separated C. originated D. independent 答案( )
2、 A. place B. attraction C. haunt D. destination 答案( )
3、 A. buy B. protect C. trade D. insure 答案( )
4、 A. end B. event C. aftermath D. case 答案( )
5、 A. popular B. useful C. available D. specialized 答案( )
A revolving credit is one where the amount is （1）without amending the credit. It can be revocable or irrevocable in relation to time or （2）. In case a credit revolves in relation to time, e.g., one that is available for up to $120,000 per month during six months, the credit is automatically available for ( 3 ) each month irrespective of whether any sum was drawn during the previous month. A credit of this kind can be cumulative or non-cumulative. If the credit is cumulative, any sum not utilized during the first period may be ( 4 )and utilized during a subsequent period. If the credit is non-cumulative, any sum not utilized in a period ( 5 ) to be available.
1、 A. increased B. floating C. renewed D. changed 答案( )
2、 A. value B. delivery C. place D. rating 答案( )
3、 A. $20,000 B. $240,000 C. $60,000 D. $120,000 答案( )
4、 A. carried over B. postponed C. delayed D. resumed 答案( )
5、 A. stops B. starts C. continues D. ceases 答案( )
Section 6 Reading Comprehension(共4题,共20分)
Gold has tumbled to its lowest level in nearly three years, putting it on track for its biggest quarterly fall since the collapse in 1971 of the Bretton Woods system of exchange rates, which pegged the value of the dollar to the precious metal.
Bankers said there had been a rush among wealthy individuals and asset managers to dump their gold holdings since Ben Bernanke, Federal Reserve chairman, last week set out for the first time a framework for the US central bank to exit its stimulus programme known as quantitative easing.
“The word at the moment is capitulation,” said Tom Kendall, precious metals analyst at Credit Suisse, adding that the past week’s selling had been driven by long-term investors. “Those are the guys who you would have expected to hold on through thick and thin and they’re not.”
The price of gold on the spot market slid 4.2 per cent yesterday, compounding recent falls to hit a low of $1,223.54 a troy ounce. Since the start of April, the precious metal has fallen 23 per cent.
The slide has wrongfooted many investors who ploughed their money into gold in recent years as a hedge against the threat of inflation and a devaluation of currencies triggered by quantitative easing. Prices rose more than sevenfold to 2011’s record high of $1,920 an ounce.
UBS, traditionally one of the most bullish banks on precious metals, recently slashed its forecast for gold prices in a year’s time from $1,750 to $1,050 an ounce and advised its legion of private wealth clients to avoid the metal.
“Investment demand is likely to remain much weaker for longer as investors see less need to insure against QE,” said Dominic Schnider, head of commodity research for the Swiss bank’s wealth management unit.
Exchange-traded funds, a popular investment vehicle, have sold more than 500 tonnes of gold, or a fifth of their total holdings, since the start of the year according to David Wilson, director of metals research and strategy at Citigroup in London.
Some traders believe that gold prices will remain under pressure over the next few months as investors continue to sell.
Although Chinese and Indian buyers rushed to purchase coins and jewellery when gold prices plunged in April, they have been less enthusiastic during the current downturn.
“Asian demand hasn’t emerged this time,” said James Steel, analyst at HSBC in New York.
The Indian government has restricted banks to lend gold-backed loans to curb gold imports, while the cash crunch among Chinese banks, the slowing economy as well as the market volatility, have damped demand in Hong Kong and China.
1、Which of the following is not right about the Bretton Woods system?( )
A、It was established in 1946.
B、It collapsed in 1971.
C、It pegged the value of the dollar to gold.
D、IMF was established by the planners at Bretton Woods.
2、What caused a rush among wealthy individuals and asset managers to dump their gold holdings?( )
A、The price hike of gold.
B、Investment banks' reports.
C、The possibility of the US central bank to exit from the QE plan.
D、Speculation on other precious metals.
3、Which of the following is not true?( )
A、The price of gold on the spot market slid 4.2 per cent one day.
B、The price of $1,223.54 a troy ounce for gold is not at its highest level.
C、Since the start of April, the precious metal has fallen 23 per cent.
D、ETFs have sold more than 500 tonnes of gold, or a fifth of their total holdings, since the start of 2011.
4、Usually, Gold is not used as _____.( )
A、a hedge against the threat of inflation
B、a hedge against the devaluation of currencies
C、a hedge against platinum
D、a risk evasion tool
5、According to the article, people in which of the following countries are least likely to invest in gold?( )
Personal wealth management refers to the professional banking service provided to individual customers, such as financial analysis, financial planning, and investment advice and asset management. Personal wealth management can be an advisory where the commercial bank provides advice for the management of customers’ wealth. It can also be of fiduciary nature where the commercial bank engages in various investments and asset management activities according to the investment scheme agreed with the customer.
Definition of personal wealth management in mainland China differs from that in other countries. CBRC imposes strict regulatory requirements on banks’ designing of wealth management products. Main principles are summarized as follows:
Wealth management products without real investment, calculation basis or full information disclosure are not allowed to be released or sold. Short or super-short and high return products cannot be released to draw deposit with constructed higher interest rate. Risk rating should be determined independently on the wealth management products in a scientific and reasonable manner.
Wealth management business must be in line with state macro-economic policies. And any restrictive industries or areas as prescribed by national laws and regulations should be definitely avoided. If the fund raised in wealth management is invested in fixed-income products, rated above investment grade. If invested in bank credit assets, such credit assets should be rated current. Meanwhile, a third-party commercial bank shall be mandated as manager and the credit asset should be monitored with no lower standard than that for the originator.
If invested in trust loans, relevant laws and regulations as well as industrial policies shall be abided by. Due diligence and post loan administration should be conducted as per the standard applied by the originator.
The total amount of trust loan granted to a single borrower and related parties under wealth management shall not exceed 10% of the bank’s total capital. Fund raised in the wealth management product jointly launched by a commercial bank and trust company shall not be used to purchase the loan or bills originated by the product launching bank. If a fund so raised is invested in an equity product or real estate trust product, the party receiving the investment shall conform to the appropriate standard.
Trust companies conducting structured trust business shall not invest the fund raised in commercial bank’s personal wealth management in any subordinated interest. For trust companies designing a structured real estate assembled fund trust plan, the ratio between superior interest and subordinated interest shall not exceed 3:1. The term of a structured product shall not be shorter than one year.
No less than 30% of a wealth management fund should be invested in highly liquid loans and bonds with secured principal repayment when a product’s fund is invested in multiple credit assets through that asset portfolio management and the residual maturity of wealth management products do not match that of the credit assets. Banks should not use proceeds raised via wealth management to fund any proprietary credit assets, and risk management of bond investment must be strengthened.
Wealth management funds may neither be invested in stocks traded on the domestic secondary markets or relevant security investment fund, nor be invested in shares of non-listed companies or shares of listed companies which have not been offered to the public or traded.
The commercial bank must report to the regulator for file prior to the launching of any wealth management products.The sales result of wealth management products must be analyzed monthly, quarterly and annually, and annual summary report on the development of wealth management business shall be filed with the regulator.
1、Personal wealth management does NOT includes _____.( )
A、customized financial solution
B、foreign exchange service over the counter
C、face-to-face financial consulting
D、fiduciary asset investment
2、As per the regulation of CBRC, the following wealth management products should not be sold EXCEPT _____.( )
A、products without real investment
B、products without full information disclosure
C、short or super-short and high-return products to attract deposit
D、products invested in treasury bills
3、If wealth management fund is to be invested in trust loan, which of the following requirements is NOT mentioned?( )
A、Relevant laws and regulations as well as industrial policies shall be abided by.
B、The trust loan granted to a single borrower and related parties shall not exceed 10% of the bank’s capital.
C、The owner of the real estate trust project shall conform to the appropriate standard.
D、The bank shall invest over 30% of fund raised in low risk fixed-income products.
4、The commercial banks need to _____.( )
A、work with trust companies to launch wealth management products
B、analyze sales of wealth management products on a daily basis
C、conduct risk rating on the wealth management products internally and carefully
D、report to the regulator before the launch of any wealth management products
5、None of the following statements is true EXCEPT _____.( )
A、banks could use a wealth management fund to invest directly in its credit assets and do not to choose a third-party commercial bank to act as fund manager
B、wealth management funds can be invested in shares of listed company although the company is not traded publicly
C、it is a basic requirement that 30% of the raised fund be invested in highly liquid loans and bonds with secured principal repayment when the investment is made through asset portfolio and there is mismatch of product maturities
D、as to structured real estate assembled fund trust plan, the term of a structured product could be shorter than one year, however the superior interest shall exceed subordinated interest by three times
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive an amount of money at a given interest. The interest rate derivative market is the largest derivative market in the world.
An interest rate swap agreement is a contract between two parties to exchange interest payment streams on a specified notional principal amount for a specific term. No principal is exchanged, only interest flows. In a generic interest rate swap, one party pays fixed and the other party pays floating. This exchange allows for conversion of variable rate funding to fixed rate exposure vice versa.
The fixed swap rate is a market rate that approximates investment grade fixed rate borrowing levels. The floating rate is a short-term market rate based on a specific money market index.
The interest payment streams exchanged reflect differences between the fixed rate and each period’s floating rate. The calculation or determination of the floating rate depends upon its underlying index and the specific terms of transaction.
Swaps resemble non-callable fixed rate debt and their value is completely determined by market conditions. If a party is paying fixed and interest rates increase, the value of the swap increases to fixed rate payer. An interest rate swap can be terminated at any time with the consent of both parties and the termination amount will depend on the relationship between the fixed rate on the swap and current market rates. If a party is paying fixed, and interest rates decline, that party has to pay to terminate the swap. Conversely, if the party is paying fixed, and interest rates rise, the party receives the market value upon termination.
Interest rate cap places a ceiling on a floating rate of interest on a specified notional principal amount for a specific term. The buyer of the cap uses the cap contract to limit his maximum interest rate. If the buyer’s floating rate rises above the cap strike, the cap contract provides for payment from the seller to the buyer of the cap for the difference between the floating rate and the cap strike.If the floating rate remains below the cap strike, no payment is required.
The cap buyer is required to pay an un-front fee for the cap. The cap premium charged by the seller depends upon the market’s assessment of the probability that rates will move through the cap strike over the time horizon of the deal. If the yield curve is upward sloping, a shorter term( two years vs.five years) and/or a higher strike (7% vs.6%) will result in a lower cap premium. Normally,the cap premium for the entire life of the cap is paid two days after the trade date. The cap premium takes the form of an un-front charge that is usually expressed in basis points as a percentage of the notional principal amount.
1、According to the passage, which of the following descriptions about interest rate swap is NOT correct?( )
A、The exchange of interest flows is usually netted and the party owing the difference pays the net amount on due date.
B、It is common that one party pays fixed rate and the other party pays variable rate.
C、The floating rate is based on a specific money market index.
D、Swap contact can be terminated if one party agrees.
2、What does it mean for a fixed rate buyer when the interest rates increase?( )
A、Value of swap declines.
B、Value of swap increases.
C、No change in swap value .
3、According to the passage, what may be the best thing to do if you are paying fixed rate of swap contract while current market rates decline?( )
A、To do nothing and enjoy the value increase.
B、To pay to terminate the swap.
C、To sign more contracts to add value.
D、To sign a contract paying floating rate.
4、Which of the following statements about the premium of interest rate cap is not correct?( )
A、Its upfront fee is expressed in basis points.
B、It could be paid within two days after the entire life of the cap.
C、The longer the term is, the higher is the cap premium.
D、The higher the strike is, the lower is the cap premium.
5、Which of the following descriptions on the comparison between interest rate swap and interest rate cap is CORRECT?( )
A、Interest rate cap can be used to hedge against rate fluctuation, but interest rate swap cannot.
B、Exchange of payments are required for interest rate swap, but no payments are required if the floating rate remains below the cap strike.
C、Interest rate swap could be terminated by the contracted parties, but there is no need of termination for interest rate cap.
D、The value of interest rate swap is determined by market, while there is no value change for interest rate cap as premium is already paid.
Payment is the debt claim and settlement process, whose activities are measured in monetary value, including transaction, clearance and settlement. The payment system is an integral part of the legal and institutional arrangements and infrastructure to complete all types of payment activities, comprised of payment service providers, bank settlement accounts, payment instruments and payment systems and securities settlement systems. It is the legal responsibility of the PBC to maintain the proper operation of the payment system. The PBC organizes, promotes and oversees the building of the national payment system.
Payment service providers are financial institutions which provide customers with payment accounts, payment instruments and payment services and also render clearance and settlement services. Over the years, there has been formed a payment service provision system with the central bank, banking institutions, non-financial payment institutions and securities settlement institutions with designated and complementary functions. The payment services in China are becoming more professional. In particular, as non-financial institutions engage in payment service markets, new payment methods are greatly enhancing the innovative capacity of payment products and have better met the payment needs of e-commerce enterprises and individuals. As a result, an integrated, open, competitive and orderly e-commerce payment service market has come into being.
The PBC is the centerpiece and manager of payment service providers. On the one hand, the law provides that the PBC is responsible for the proper operation of payment and clearance system, and organizes or helps to organize the clearance system among the banking institutions, coordinates the clearance businesses among them and provides clearance services. Payment and clearance services are provided and inter-bank payment and settlement businesses are conducted through modern payment systems, automated clearing houses and the clearance system.
On the other hand, the PBC standardizes and regulates the payment service organizations by marking institutional arrangements as well as enhancing risk prevention and management by encouraging self-discipline and prudent operation. For example, the PBC promulgated Management Method on Non-Financial Payment Services and its detailed implementation guidance in 2010 to address the continuous expansion of payment services by non-financial institutions and resultant risk exposure. The objective is to intensify supervision and management of payment services in non-financial institutions, safeguard the security of customer funds and the legitimate rights and interests of consumers and maintain public confidence in the monetary transfer mechanism.
1、Participants of the payment system do not include _____.( )
2、What made the payment service market integrated, open and competitive?( )
A、Sound management of the PBC.
B、Participation of non-financing institutions.
D、Increase of customers.
3、Which is not true about the role of PBC?( )
A、It manages the payment system.
B、It engages in the payment activities.
C、It provides services directly to customers.
D、It plays the main role in the payment system.
4、What does "risk exposure" mean in the last paragraph?( )
5、To prevent continuous expansion of payment services by non-financial institutions, the PBC _______.( )
A、promulgated some rules and regulations.
B、prohibited their engagement in the payment system.
C、turned to customer fund for help.
D、intensified supervision on banks.
Section 7 Comprehensive Analysis(共2题,共15分)
Think of banking today and the image is of grey-suited men in towering skyscrapers. Its future, however, is being shaped in converted warehouses and funky offices in San Francisco, New York and London, where bright young things in jeans and T-shirts huddle around laptops, sipping lattes or munching on free food.
A wave of financial-technology (or “fin-tech”) firms, many of them just a few years old, are changing the ways in which people borrow and save, pay for things, buy foreign exchange and send money. In doing so they are finding and mining rich seams of profit, challenging the business models of existing institutions and inflating a bubble of excitement among investors that technology and the internet are about to change banking for good.
Take Xoom, a San Francisco-based firm that is little more than a decade old. It specializes in sending small amounts of money across borders. By collecting the money online, and using technology to minimize fraud, it is able to undercut the fees charged by traditional money-senders such as Western Union that have huge networks of agents to collect and distribute cash. Its stock has more than doubled since its IPO earlier this year, valuing the company at more than $1 billion, a heady figure for a firm that reported revenues for 2012 of just $80m and a net loss for the year of $5m. In an echo of the valuation methods used before the bursting of the dotcom bubble in 2001, its shares are priced not in relation to its profits or even its revenue but to its extraordinary growth.
In Britain similar buzz surrounds Wonga, an even younger firm that specializes in making short-term loans at eye-popping interest rates. The firm is controversial: it occupies the same market as payday lenders. The Archbishop of Canterbury, no less, has said he wants to use church credit unions to compete it out of existence. But Wonga is growing fast thanks to slick technology and clever algorithms that analyze masses of data, including how much time customers spend on its website. This allows it to reach credit decisions in seconds. The time taken between a customer applying for a loan and receiving the money in their bank can be mere minutes.
Several factors have converged over the past few years to produce the upsurge in fin-tech firms. First was the financial crisis, which damaged trust in banks. It also precipitated several years of record-low interest rates, which pushed savers to look for better returns where they can. That has benefited peer-to-peer lenders such as Lending Club, an American firm that provides a platform on which investors can lend to borrowers and that recently passed the $2 billion mark for loans originated.
The rise of cloud computing, a term for software and services delivered over the internet, has also slashed barriers to entry for technology firms. This is true across many areas of business but it is an especially potent force in financial services, which is a digitized industry in which most money exists as bits and bytes in computers rather than as notes and coins.
Globalization also helps. Sonali de Rycker, a partner at Accel, a VC firm, and a director of Wonga, points out that the company initially got started by outsourcing much of its programming to developers in Kiev, the Ukrainian capital.
The spread of smartphones has also boosted tech start-ups by enabling the emergence of new ways of making or receiving payment. Firms such as Square in America or iZettle in Europe produce cheap credit-card readers that plug into smartphones and allow merchants to accept card payments. Their costs are low partly because customers already have sophisticated computers in their pockets.
The emergence of “big data”, a term used rather loosely to describe computer software that can analyze masses of information for patterns or correlations that people would not otherwise spot, is another factor. Number-crunching has helped firms such as Wonga and Zest Finance, an American start-up, transform the way credit decisions are made.
Yet for all their promise, fin-tech firms still face formidable barriers. Chief among these is winning the trust of their customers. It is not a huge leap of faith to order a book online; it is a larger one to entrust your savings or the management of your financial life to a new company that seems to exist only on your computer screen or smartphone. Samir Desai, the chief executive and co-founder of Funding Circle, a British peer-to-peer lender that specializes in financing small businesses, says his biggest challenge is raising awareness among borrowers. “Less than 1% of businesses have heard of peer-to-peer lenders, or even know that there are alternatives to banks,” he says. As expensive as banks’ branch networks are, they provide advertising that money cannot easily buy.
Another challenge comes from the limits of their business models. Peer-to-peer lenders such as Zopa (with which your correspondent has deposited £50 in the name of research) are not able to offer their savers the security of insured deposits or a guarantee that they can withdraw their money when they want it. This makes them much less risky to regulators since they cannot suffer from bank runs, but less useful to customers who want long-term mortgages as well as instant access to their cash. Fin-tech firms will take lots of business from the banks in coming years. Replacing them is another matter.
1、What is the main idea of the passage?( )
A、An explosion of financial technology is changing finance.
B、An explosion of financial institution is changing finance.
C、A wave of VC firms is changing finance.
D、Outlook for financial world.
2、Which of the following is NOT changed by fin-tech according to the 2nd paragraph?( )
A、Borrowing and saving.
B、Paying for things.
C、Buying foreign exchange and sending money.
3、Which of the following factors that have converged over the past few years to produce the upsurge in fin-tech firms is NOT mentioned in the passage?( )
4、Which of the following is/are the formidable barrier(s) faced by fin-tech firms?( )
A、To win the trust of their customers.
B、Limits of their business models.
C、Size of their offices is too small.
D、Both A and B
5、One of the challenges coming from the limits of the business models of fin-tech firms is _____.( )
B、High cost of business.
C、Lack of long-term mortgages.
D、Instant access to their cash.
China Cinda Asset Management priced its debut offshore renminbi bond at 4.0% to raise Rmb2bn (US$318m) via a three-year issue last Wednesday. The deal not only marks the first Dim Sum bond from the AMC sector in China, but also the largest unrated renminbi bond year to date from a state-owned enterprise.
The pricing was at the low-end of final guidance at 4.0%–4.1%, as a result of an order book of Rmb4.5bn from over 40 accounts, including both PRC and global institutional investors, which helped to squeeze guidance further. The initial price talk was at low 4% on Tuesday afternoon.
The bonds performed well in the secondary markets and traded up to 100.30/100.60 on their debut.
Compared with onshore funding, the Dim Sum bond represented around 30bp over Cinda’s latest onshore issuance, pointing to the attractiveness for SOEs to tap the offshore market. Domestically AAA rated Cinda issued in October this year the first public paper from an AMC in China. Its Rmb10bn in senior onshore bonds comprised a Rmb5bn three-year at 4.35% and a Rmb5bn five-year at 4.65%.
Strong interest came especially from PRC investors as they are familiar with the credit. That also explains why a rating is unnecessary as PRC investors view the company, with Aa3/AA–/AA– rated Ministry of Finance as parent, as quasi-sovereign credit.
That was reflected in the distribution as Asian investors took 99% of the deal, while Europe bagged the rest. In terms of investors, banks and fund managers booked 40% each and the rest went to private banks.
The deal followed a series of fixed-income investor meetings in Hong Kong and Singapore two weeks ago from November 23. During the meetings, the focus was on the business model and the return on the assets as AMC credits are rare in Asia.
Bitronic, a wholly owned SPV of Cinda incorporated in the British Virgin Islands, will be the issuer. Cinda is the provider of the keep-well and inter-company loan guarantee.
Standard Chartered (Hong Kong), UBS and Wing Lung Bank are joint global co-ordinators and joint bookrunners, as well as lead managers with ABC International, Bank of China (HK), BOC International, CCB International, Cinda International Securities, CITIC Securities International, Credit Suisse, Goldman Sachs(Asia) and Morgan Stanley.
Proceeds will be on-lent to Well Kent International, a wholly owned subsidiary of Cinda, and will also be used for the group’s financial services in the overseas market. In other words, it will not be used for the NPL business in the onshore market.
The Dim Sum deal is another important step in the evolution of AMCs from stopgap restructuring agencies into self-sustaining corporations.
The four big AMCs, Huarong, Cinda, Great Wall and Oriental, are in the process of reorganising and turning themselves into financial holding companies as they have resolved most of the NPLs transferred to them in 1999 from the Big Four commercial banks.
In June 2010, Cinda turned into a shareholding company after the State Council appointed it as the pilot enterprise to conduct commercialisation of state-owned AMCs. The government has allowed AMCs to become financial holding entities, alongside banking groups, securities companies and insurance groups.
During the restructuring, Cinda stripped off the remaining policy-oriented business to focus on its market-oriented business, according to the company’s financial statement.
Cinda said, as of December 31 2011, it had Rmb171bn of assets and Rmb128bn of debts including only Rmb11.3bn of borrowings with an interest rate of 2.25% from the central bank for the initial purchase of NPLs from commercial banks.
1、Which one of the following is the topic of this article?( )
A、The Dim Sum issue from Cinda is another important step in the evolution of AMCs.
B、Cinda conducts first AMC Dim Sum issue.
C、On-shore funding and off-shore funding of SOEs.
D、Chinese AMCs, Huarong, Cinda, Great Wall and Oriental, are in the process of reorganising and turning themselves into financial holding companies.
2、According to the report, how will the proceeds of the bond issue be used?( )
A、Proceeds will be used for the NPL business in the onshore market.
B、Proceeds will be used for the financial services in the offshore market.
C、Proceeds will be on-lent to a wholly owned subsidiary of Cinda, and be used in the overseas market.
D、Proceeds will be on-lent to Well Kent International only.
3、Dim sum bonds are bonds issued in _____ but denominated in _____ , rather than the local currency. They are named after dim sum, a popular style of cuisine in Hong Kong.( )
A、Hong Kong, USD
B、outside of China, RMB
C、in China, USD
D、Hong Kong, Sterling
4、Who are the joint global co-coordinators and joint book runners of Dim Sum issue?( )
A、Huarong, Cinda, Great Wall and Orient.
B、Standard Chartered (Hong Kong), UBS and Wing Lung Bank.
C、Bitronic, a wholly owned SPV of Cinda incorporated in the British Virgin Islands.
D、ABC International, Bank of China (HK), BOC International, CCB International.
5、PRC investors are especially interested in Cinda’s Bond issue because _____.( )
A、Cinda does both onshore and offshore funding.
B、Asian investors took 99% of the deal.
C、they are familiar with the company and view it as quasi-sovereign credit.
D、this is the first offshore renminbi bond issued by Cinda.