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ECON405 Banking and Finance – Trimester 3, 2020 Assignment 1 – Essay Due date: Sunday 6th December, 2020, 11.59pm Weight: 20% Length: 2000 words Question: In Australia, three key regulators oversee...

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ECON405 Banking and Finance – Trimester 3, 2020
Assignment 1 – Essay
Due date: Sunday 6th December, 2020, 11.59pm
Weight: 20%
Length: 2000 words
Question: In Australia, three key regulators oversee monetary authority in the financial sector.
(a) Explain the roles and responsibilities of these three regulators.
(b) Discuss
iefly what are the recent changes/updates of those roles and responsibilities with respect to the cu
ent out
eak of COVID-19.
(c) Using a flowchart, discuss the process of monetary policy transmission and economic activity across the financial and real sectors of the economy resulting from the Reserve Bank
of Australia’s (RBA) recent monetary policy changes (lower the cash rate from 0.50 percent to 0.25 percent).
Criteria High Distinction
100% - 85%
Distinction
84% - 75%
Credit
74% - 65
Pass
64% - 50%
Fail
50%
Mark
Describe who are the three key
egulators in the financial sector.
Critically analyse the roles and
esponsibilities of these three
egulators based on concepts and
information provided in the
textbook, lecture notes, journal
articles and other information
sources.
A comprehensive and
detailed explanation
and understanding of
the three key
egulators in the
financial sector and
their main roles and
esponsibilities.
Supported by deep
and
oad relevant
esearch and an in-
depth conceptual
analysis.
A clear and detailed
explanation and
understanding of the
three key regulators
in the financial sector
and their main roles
and responsibilities.
Supported by relevant
deep and
oad
esearch together
with a mostly sound
conceptual analysis.
An appropriate
explanation and
understanding of
the three key
egulators in the
financial sector and
their main roles and
esponsibilities.
Supported by
elevant research
together with some
evidence of
application and
analysis of pertinent
concepts.
An appropriate
explanation and
understanding of the
three key regulators in
the financial sector and
their main roles and
esponsibilities.
Mainly descriptive, no
analysis of pertinent
concepts.
Adequate research
effort to address the
question.
An inadequate
explanation and
understanding of the
three key regulators
in the financial sector
and their main roles
and responsibilities;
Lacks structure or
clarity and not at an
advanced level.
The focus bears little
elationship to the
focus of the
assignment part 1
(Not answering the
question)
20

Include recent changes/updates of
those roles and responsibilities
with respect to the cu
ent
out
eak of COVID-19 in your
discussion.
A comprehensive and
detailed explanation
and understanding of
those roles and
esponsibilities with
espect to the cu
ent
out
eak of COVID-
19 in your discussion.
Supported by deep
and
oad relevant
esearch and an in-
depth conceptual
analysis.
Good analysis of
ecent
changes/updates of
those roles and
esponsibilities with
espect to the cu
ent
out
eak of COVID-
19 in your discussion.
Supported by relevant
deep and
oad
esearch together
with a mostly sound
conceptual analysis.
Some evidence of
an analysis of
ecent
changes/updates of
those roles and
esponsibilities with
espect to the
cu
ent out
eak of
COVID-19 in your
discussion.
Supported by
elevant research
together with some
evidence of
application and
analysis of pertinent
concepts.
Some evidence of an
analysis of recent
changes/updates of
those roles and
esponsibilities with
espect to the cu
ent
out
eak of COVID-19
in your discussion.
Mainly descriptive, no
analysis of pertinent
concepts.
Adequate research
effort to address the
question.
A scant and unclear
analysis of the recent
changes/updates of
those roles and
esponsibilities with
espect to the cu
ent
out
eak of COVID-
19 in your discussion.
The focus bears little
elationship to the
focus of the
assignment part 2
(Not answering the
question).
20
Describe the transmission process
of expansionary monetary policy
scenario (lower the cash rate from
0.50 percent to 0.25 percent).
Using the flow chart, critically
analyse the impacts of this
monitory policy on economic
activities.
An in-depth analysis
of the impacts of this
monitory policy on
economic activities.
Supported by deep
and
oad relevant
esearch and an in
depth conceptual
analysis.
Good analysis of the
impacts of this
monitory policy on
economic activities
Supported by relevant
deep and
oad
esearch together
with a mostly sound
conceptual analysis.
Some evidence of
an analysis of the
the impacts of this
monitory policy on
economic activities.
Supported by
elevant research
together with some
evidence of
application and
analysis of pertinent
concepts.
Some evidence of an
analysis of the impacts
of this monitory policy
on economic activities;
although lacks
structure or clarity and
not at an advanced
level.
Mainly descriptive, no
analysis of pertinent
concepts. Adequate
A scant and unclear
analysis of the
impacts of this
monitory policy on
economic activities.
The focus bears little
elationship to the
focus of the
assignment part 3
(Not answering the
question).
research effort to
address the question.
50
Presentation
Include a title page with the unit
code, your student details (name
and student number) and the
number of words – excluding
eferences, tables and figures.
Include a table of contents after
the title page.
Use of section headings.
Appropriately reference the
material included in the essay and
also includes a reference list in
accordance with APA.
Be between 1850 and 2300 words
in length.
Includes appropriate graphs
and/or tables where required.
Outstanding
presentation style.
Title page with the
unit code, your
student details (name
and student number)
and word count was
included.
Table of contents
provided and
sectional headings
used in essay.
Outstanding use of
eferences and a
eference list
included in exact
accordance with
APA.
Between 1850 and
2300 words in length.
Excellent use of
graphs and tables
where appropriate.
Excellent
presentation style
Title page with the
unit code, your
student details (name
and student number)
and word count was
included.
Table of contents
provided and
sectional headings
used in essay.
Excellent use of
eferences and a
eference list
included in exact
accordance with
APA.
Between 1850 and
2300 words in length.
Good use of graphs
and tables where
appropriate.
Good presentation
style
Title page with the
unit code, your
student details
(name and student
number) and word
count was included.
Table of contents
provided and
sectional headings
used in essay.
Use of references
and a reference list
included; although
not in exact
accordance with
APA.
Between 1850 and
2300 words in
length.
Use of graphs and
tables where
appropriate.
Adequate presentation
style
Title page with the unit
code, your student
details (name and
student number) and
word count was
included.
Table of contents
provided and sectional
headings used in essay;
although lacking
structural flow.
Use of references and a
eference list included;
although not in exact
accordance with APA.
Between 1850 and
2300 words in length.
Use of graphs and
tables where
appropriate.
Poor presentation
style
Title page with the
unit code, your
student details (name
and student number)
and word count was
not included.
Table of contents not
provided and/or
sectional headings
not used in essay.
No use of references
and/or no reference
list included in
accordance with
APA.
Not between 1850and
2300 words in length.
No use of graphs and
tables where
appropriate.
10
https:
moodle.une.edu.au/mod/kalvidres/view.php?id=1106884
https:
moodle.une.edu.au/mod/kalvidres/view.php?id=1106884
Answered Same Day Nov 21, 2021

Solution

Hartirath answered on Nov 23 2021
166 Votes
Running Head: RBA
RBA
Student Name:
Unit Name:
University Name:
Date:
Contents
Explain the roles and responsibilities of these three regulators.    3
Discuss
iefly what are the recent changes/updates of those roles and responsibilities with respect to the cu
ent out
eak of COVID-19    6
Provide Liquidity to the Financial System    6
Provide Liquidity to the Government Bond Market    7
(c) Using a flowchart, discuss the process of monetary policy transmission and economic activity across the financial and real sectors of the economy resulting from the Reserve Bank of Australia’s (RBA) recent monetary policy changes (lower the cash rate from 0.50 percent to 0.25 percent)    8
Lower the Cash Rate Target to 0.1 Per cent    8
References    11
Explain the roles and responsibilities of these three regulators.
The Reserve Bank of Australia (RBA) is answerable for monetary policy and the constancy of overall economy. RBA has no compulsion to protect the bank depositor’s interests and other bank creditors. Rather, its mission is to address risks to financial activity as well as financial stability that can spill over into investor and consumer confidence. In event of such a threat, the RBA retain the discretionary function of the "lender of previous resort" for crisis liquidity assistance (Cheremukhin et al., 2016). If providing such assistance, RBA's preference is to make finances available throughout the market throughout domestic market operation. However, in certain situations, the RBA is ready to lend to financial institutions facing liquidity issues. The institution must be under the supervision of APRA. Should be solvent and failure to pay must intimidate the constancy of economy as a whole. Judgment of APRA's on fundamental health of poor economic institutions is critical to the RBA's support.
Under the auspices of its Payment Systems Commission, the RBA has the power to promote the security, efficiency and competition of APS and is backed by strong regulatory powers. Such as, if an RBA evaluates that there is room for access to a specific payment system, and to improve its security or efficiency, it can "assign" that system as regulated (Daly et al., 2014). It may then impose access on the system or set standards of efficiency and safety for the public good. RBA is answerable for operating an exchange settlement account for applicants in the payment system.
The RBA published a draft economic stability standard for clearing as well as facilities of settlement in November 2002 and the final standard in May 2003.
The individual council members' annual reports and internet site contain details about their activities and responsibilities.
The Australian Financial Regulatory Framework, the key element of which was introduced on July 1, 1998 in reply to the suggestions of the Financial System Survey (Wallis Commission), has three particular functional responsibilities (Maddock, 2013). It is composed of institutions.
• Australian Prudential Regulation Authority responsible for soundness supervision.
• Investment Commission and Australian Securities. Answerable for the market integrity or customer protection of the entire economy.
• The Reserve Bank of Australia (RBA) is responsible for monetary policy, overall financial system stability, and payment system regulation.
Australia's Health Regulatory Authority is an integrated health regulator answerable for deposit handling agencies (banks, credit unions and building, credit unions), or life insurance, friendly societies, non-life insurance and aging. APRA is responsible for developing a soundness policy that balances financial security and efficiency, competitiveness, competition, as well as competitive neutrality. Depositors are synchronized by the APRA under only licensing system or are all subject to the similar "Depositor Protection" supplies of Banking Act of 1959. A license that creates soundness standards or gives enforceable instructions, appoints an investigator moreover statutory executive to a licensed deposit handling agency (ADI) facing difficulties, or controls the agency itself. If the difficulties turn out to be unmanageable, APRA can also apply to court to settle the ADI.
Under "Depositor Protection" clause of Banking Act of 1959, depositor’s initally charge ADI's assets at liquidation (Wilson, 2007). To support the interests of depositors, all ADIs must hold their Australian assets at least as much as their Australian deposit liabilities. However, these a
angements do not guarantee the depositor's funds in any way and the depositor cannot rely on APRA or the government. APRA is a problematic entity, as is the case with ADI, where financial weaknesses in life insurers, non-life insurers, friendly societies and old-age pension funds can affect adversely the interests of policyholders and members. In the case of aging, the Minister of Revenue and Assistant Minister of Finance may indemnify members of the Fund for losses because of theft...
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