Access over 20 million homework & study documents

20200404040142question Ass 3 2nd Smtr 3 2 Ccvbn

Content type
User Generated
Subject
Accounting
School
Saudi electronic university
Type
Homework
Rating
Showing Page:
1/5
College of Administrative and Financial Sciences
Assignment 3
Deadline: End of 12 W-(11-4-2020) @ 23:59
Course Name: Accounting of Financial Institutions
Student’s Name:
Course Code: ACCT 405
Student’s ID Number:
Semester: 2
CRN: 20785
Academic Year: 2019-20-1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained / 5
Level of Marks: High/Middle/Low
Instructions PLEASE READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/5
Question 1
A)What do you mean by securitization? Explain
Securitization is the process where an issuer or a company comes up with a suitable financial
plan whereby they seek to bring all their assets together to form a consolidated financial pool that is
issued to the investors. The process commences when the company holding the assets gathers all the
data of the assets it would want to remove on its balance sheets. In addition, the process of
securitization facilitates liquidity in the market. It is a convenient tool for financial companies as it
gives them a platform for raising funds. For instance, if such companies have already issued a huge
number of loans to its customers, and it has the desire to add the number, then securitization will come
in handy. Therefore, in such a scenario, the company can put its assets or debts together to form
financial instruments and then provide them to investors. As a result, the firm gains the ability to
provide loans to its customers as well as raise more capital (Balzacq, 2019). On the other hand,
investors are also beneficiaries of such an act since they are able to diversify their portfolios and earn
quality returns.
B Which was the first non-assets, backed Securitization deal in Saudi Arabia?
The Tasheel program was the first non- assets securitization deal whereby SR166mn of its
receivables were securitized by Extra. The receivables were sold to Al-Rajhi Bank for the exchange of
a cash inflow of SR160 mn. According to Al Rajhi capital research, the deal yielded to a lot of positive
implications whereby upfront future gains and cash flows were recognized. On top of this, the
company was in a position to expand in its installments as well as reducing the company’s debt. Al
Rahji believed that Extra had managed to maintain a positive record and a good credit quality for all
the credit on installments. It also believed that a delinquency ratio of 10% and the NPL ratio was 3%,
thus meaning the company had managed to keep it average. Al Rahji believed that the securitization

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/5

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 5 pages?
Access Now
Unformatted Attachment Preview
College of Administrative and Financial Sciences Assignment 3 Deadline: End of 12 W-(11-4-2020) @ 23:59 Course Name: Accounting of Financial Institutions Student’s Name: Course Code: ACCT 405 Student’s ID Number: Semester: 2 CRN: 20785 Academic Year: 2019-20-1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained / 5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Question 1 A)What do you mean by securitization? Explain Securitization is the process where an issuer or a company comes up with a suitable financial plan whereby they seek to bring all their assets together to form a co ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
I use Studypool every time I need help studying, and it never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents