DDEP – Knowsia

CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

Question

The Board of Goldbank Plc in Sikaman has observed that the recent Domestic Debt Exchange Programme (DDEP) has negatively affected the governance and decisions of the bank. The Board is particularly concerned about the impact it is having on its governance performance standards and structures.

A major observation is the impact of the DDEP on the balance sheet or statement of position of the bank. The DDEP has resulted in a significant reduction of the Common Equity Tier 1 (CET1) capital of the bank. The situation also suggests that the strategic corporate governance objective of securing or protecting shareholders’ assets has been undermined. You are aware of some regulatory forbearances including a period of capital restoration and restructuring deployed by the regulator. It appears many of the governance indices set for bank corporate governance control and monitoring have been breached, or do not seem to have any governance interpretation for decision-making.

The Board of Goldbank intends to engage you as a corporate governance consultant to help it to establish the full impact of the programme on the bank’s governance structures and mechanisms.

The Chairperson, Dr. Rita Agyei is particularly interested in the aspects that relate to the Capital Restoration Programme.

REQUIRED

(i) Critically examine the FIVE main corporate governance measures that should be taken by the Board towards its Capital Restoration Programme (CRP). (35 Marks)

(ii) Examine the governance procedures that should be implemented to co-ordinate the capital restoration programme in Goldbank Plc. (15 Marks)

(TOTAL. 50 MARKS)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank of Ghana, BoG, Capital Adequacy, Capital Restoration Programme, CET1, Common Equity Tier 1, CRP, DDEP, Domestic Debt Exchange Programme, Governance Structures, Regulatory Forbearances
Level: Level 4

Topic: ETHICAL PERSPECTIVES OF CORPORATE GOVERNANCE
Series: APR 2023

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

Question

a) One very important risk the treasury of a bank manages daily is. liquidity risk. Identify five major sources of liquidity risk for your bank and suggest ways your treasurer should take to manage liquidity shortfalls in their daily operations?

as marks

b). Explain in detail what a repurchase agreement is and identify five eligible securities that can be used for this purpose in Ghana.

[10 marks]

c) The domestic debt exchange program of government has ended and the replacement of old bonds with the new bonds has taken effect. Explain briefly what a government of Ghana domestic bond is and how it differs from government of Ghana Eurobond.

[5 marks]

[Total: 30 marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: DDEP, Domestic Bonds, Eligible Securities, Eurobonds, Liquidity risk, Liquidity Shortfalls, Repurchase Agreement, Treasury Management
Level: Level 3

Topic: Government Securities
Series: APR 2023

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

Question

(a) Bank of Ghana has requested the various Commercial Banks to come up with proposals for Recapitalisation following the effects of the Domestic Debt Exchange Programme (DDEP).

Recommend to your Board the various sources for this Recapitalisation, explaining how feasible these are to obtain regulatory approval. (10 marks)

(b) Explain Regulatory Capital, emphasizing how it is computed and its relevance in the Capital Management Scheme of a bank’s ALCO. (5 marks)

(c) Explain Economic Capital. Distinguish Economic Capital from Regulatory Capital.(5 marks)

[Total: 20 marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: BoG, DDEP, Economic Capital, Recapitalisation, Regulatory Capital
Level: Level 4

Topic: CREDIT RISK MANAGEMENT
Series: APR 2024

CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

Question

The Board of Goldbank intends to engage you as a corporate governance consultant to help it to establish the full impact of the programme on the bank’s governance structures and mechanisms.

The Chairperson, Dr. Rita Agyei is particularly interested in the aspects that relate to the Capital Restoration Programme.

REQUIRED

(i) Critically examine the FIVE main corporate governance measures that should be taken by the Board towards its Capital Restoration Programme (CRP). (35 Marks)

(ii) Examine the governance procedures that should be implemented to co-ordinate the capital restoration programme in Goldbank Plc. (15 Marks)

(TOTAL. 50 MARKS)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank of Ghana, BoG, Capital Adequacy, Capital Restoration Programme, CET1, Common Equity Tier 1, CRP, DDEP, Domestic Debt Exchange Programme, Governance Structures, Regulatory Forbearances
Level: Level 4

Topic: ETHICAL PERSPECTIVES OF CORPORATE GOVERNANCE
Series: APR 2023

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

Question

as marks

b). Explain in detail what a repurchase agreement is and identify five eligible securities that can be used for this purpose in Ghana.

[10 marks]

[5 marks]

[Total: 30 marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: DDEP, Domestic Bonds, Eligible Securities, Eurobonds, Liquidity risk, Liquidity Shortfalls, Repurchase Agreement, Treasury Management
Level: Level 3

Topic: Government Securities
Series: APR 2023

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

Question

(a) Bank of Ghana has requested the various Commercial Banks to come up with proposals for Recapitalisation following the effects of the Domestic Debt Exchange Programme (DDEP).

Recommend to your Board the various sources for this Recapitalisation, explaining how feasible these are to obtain regulatory approval. (10 marks)

(b) Explain Regulatory Capital, emphasizing how it is computed and its relevance in the Capital Management Scheme of a bank’s ALCO. (5 marks)

(c) Explain Economic Capital. Distinguish Economic Capital from Regulatory Capital.(5 marks)

[Total: 20 marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: BoG, DDEP, Economic Capital, Recapitalisation, Regulatory Capital
Level: Level 4

Topic: CREDIT RISK MANAGEMENT
Series: APR 2024

Question Tag: DDEP

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CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

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CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

You're reporting an error for "CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme"

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

You're reporting an error for "BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds"

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

You're reporting an error for "RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management"

CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme

Examine measures and procedures for capital restoration in a bank affected by DDEP, focusing on governance aspects.

You're reporting an error for "CG – APR 2023 – L4 – Q1 – Impact of DDEP on Bank Governance and Capital Restoration Programme"

BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds

Identify five sources of liquidity risk and management ways for shortfalls; explain repurchase agreements and five eligible securities in Ghana; describe Ghana domestic bonds vs. Eurobonds post-DDEP.

You're reporting an error for "BO – April 2023 – L3 – Q3 – Liquidity Risk, Repurchase Agreements, and Government Bonds"

RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management

Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.

You're reporting an error for "RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management"

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