This is a Finance topic research proposal by the team of Dissertation Help Service.
This sample research proposal would give you an idea how you can go about choosing and writing a proposal based on finance related topic.
“Theoretical and practical aspects of Asset liability management in commercial banking: A case of HSBC Bank”.
Background of the Research
Asset Liability Management (ALM) is a critical function to the banks and financial institutions in present environment due to volatile global market, proliferation of new financial products and changing environment of regulatory system (Koch and MacDonald, 2009). It is a dynamic and comprehensive framework that helps banks and financial institutions to measure, monitor and manage the market risk (Consiglio, Cocco and Zenios, 2008). Under this system, structure of balance sheet is managed in proper way to ensure that the net earnings from interest are maximized and risks are minimized.
The ALM system has various functions to manage risks such as liquidity risk management, market risk management, trading risk management, funding and capital planning, profit planning and growth projection (Kosmidou and Zopounidis, 2004). It enables the banks to take business decisions in a more informed framework through considering risks. It is an integrated approach that covers both types of amounts financial assets and liabilities with the complexities of the financial market.
Justification of Research
In present scenario, ALM is important for the banking industry due to deregulation of interest regime. It helps to assess the risks and manage the risks by taking appropriate actions. So, to understand the ALM process and various strategies that are helpful for the banks to manage the market risk, this topic is selected. Along with this, it would be beneficial for me to develop my knowledge regarding the ALM process, functions and practical aspects through case study of HSBC bank.
Following are the main objectives of the research:
- To explore theoretical and practical aspects of asset liability management in banking industry
- To identify the asset liability management strategies in context of HSBC bank
- To recommend a framework to mitigate risk through ALM
“How assets liability management is important for reducing risks in commercial banking?”
In this section, theoretical and practical aspects of asset liability management in banking industry will be explored in context of HSBC bank.
For this research, qualitative and exploratory research methodology is selected. Secondary data collection is selected to collect data and information (Bergh and Ketchen, 2009). To attain the objectives of the research, secondary data will be collected through case study of HSBC bank.
Potential Information Sources
In this research, journals, articles, research paper, books, company websites, annual report of the company and other reliable and authentic sources will be used to collect secondary data and information.
The researcher might face various difficulties during the research regarding the authenticity of sources, reliability and validity of collected information, completing the research in limited time and cost.
We hope that you
Bergh, D. D. and Ketchen, D. J. (2009) Research Methodology in Strategy and Management. UK: Emerald Group Publishing.
Consiglio, A., Cocco, F. and Zenios, S. A. (2008) Asset and liability modelling for participating policies with guarantees. European Journal of Operational Research, 186(1), p. 380-404.
Koch, T. W. and MacDonald, S. S. (2009) Bank Management. USA: Cengage Learning.
Kosmidou, K. and Zopounidis, C. (2004) Goal programming techniques for bank asset liability management. Germany: Springer.