This is the research which is based on HSBC Bank which help in developing understanding about the research topic.
- Develop Aim and Objective
- Define Literature Review
- Discussion about research Methodology
In the current research proposal would be based on analysing what role do finance reserve is playing into institution like that of HSBC bank. In this part reserve are called to as amount of profits or the retained earning that are included within banking sector so that this amount could be utilised into development of their bank in further times. So the main aim of maintaining reserves for bank would be to meet daily cash or liquid requirement and in strengthening the reserve of cash as well (Kidwell, Blackwell and Whidbee, 2016). Main issue regarding the research paper would be that of analysing what could be role of finance reserve into financial institutions. The issue or problem could be analysed as why keeping reserve would be essential for bank, what is meant as having liquidity in terms of reserve of financial institution.
Further the various types of theories like that of modern money, theory of financial liberalisation and roll over would be included within this. All these would be helping in analysing the research problem or issue in more deeper and completed sense. What is the meaning of finance reserve in financial institution?
- What role does finance reserve would be playing in financial institutions like that of HSBC bank?
- What are the theories in regard to financial reserve?
This whole research would be wholly based on secondary data collection and interpretation techniques like that of literature review. This could be regarded to as limitation as not use of primary research methods so that ideas could be collected on point of view of people working into HSBC bank. Other the hand there was also lack of sufficient time which is laying restriction on doing further research on topic. In depth research is not been done time constrain is reason behind why primary research tool is not been used as this would be taking more time.
Reserve would be defined to as that asset of bank which is in liquid form and could be used by them for meeting day to day expense of financial institution or during the time of emergency as well. It is in form of liquid deposit and cash those which are been kept into vaults of bank or with central bank of country. This is the requirement of financial institution that they are keeping some amount in form of liquid so that they could be able to make their daily payments (Zietlow, Hankin and O'Brien, 2018). All these types of reserve are to be created by bank towards the end of financial year as is calculated after keeping in profits which company earned during that year.
HSBC bank is been included for further study of role of finance reserve into financial institution as it is regarded to as one of the biggest banking institutions. The bank is British multinational bank and providing financial service which originated in Hong Kong and currently is 7th largest bank in world. The total assets and liability of company is about $2.3 trillion as on 2016 as the full name of bank is Hong Kong and Shanghai Banking Corporation which is working as holding company. HSBC bank is providing about all types of financial services to their customers including that of retail, corporate, investment, private banking and products like that of credit cards, mortgage loans and financial insurance. The company is having about 2.2 million employees all over the world with about 38 million customers. HSBC is having around 3,900 branch in continents like that of Asia, Africa, America, Europe and Oceania about 67 countries are included.
So here study would be done on what role is finance reserve playing in HSBC bank and all linked theories to this reserve would be included.
AIMS AND OBJECTIVES
To determining the role of finance reserves in financial institutions: A study on HSBC bank
- To interpret the meaning of financial reserve in banking sector.
- To determine the role of finance reserve in financial institution like that of HSBC bank.
- To analysis various theories in regard to this financial reserve.
It is important to study the meaning and importance of finance reserve into financial institutions like that of banking sector. Banks are the most essential part of our economic and financial infrastructure which is regarded to as pillar of nation in building up stability and liquidity into nation. So here it would be required to analyse what is role of reserves like that of saving and current account, mutual funds, fixed and recurring deposits in bank.