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FINM4100_T3_2021_Assessment_2 Assessment 2 Information Subject Code: FINM4100 Subject Name: Data Analytics in Accounting, Economics & Finance Assessment Title: Investigative Report - Fintech & Regtech...

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FINM4100_T3_2021_Assessment_2

Assessment 2 Information
Subject Code: FINM4100
Subject Name: Data Analytics in Accounting, Economics & Finance
Assessment Title: Investigative Report - Fintech & Regtech
Assessment Type: Individual Assignment
Weighting: 25%
Total Marks 25
Submission:
Face to Face Students: Turnitin;
Online Students: Turnitin
Due Date: Friday Week 10, 19:55pm AEST via Turnitin
Assessment Description

• This is an individual report. Word limit is 1500 (+/- 10%)
• This report should be prepared for practitioners in the financial services industry and
address the:
A) Application of big data and analytics to central banking and;
B) The effects this will have over how these institutions operate over the next 5-10 years
• Students are provided with ONE core reading and four suggested readings (Available on
MyKBS).
1. CORE: Big data approach to understand central banks and their operation.
2. SUGGESTED: Central banks’ new strategic approach toward big data analytics in
forecasting and decision-making.
3. SUGGESTED: The future of central banking - The European Central Bank.
4. SUGGESTED: Big data supporting financial stability
5. SUGGESTED: Emerging opportunities and challenges with central bank data.
Students must reference the core reading in their report.
• In addition to the core readings, students must to include THREE additional references from
their own research.
• Students may wish to use the ECB, RBA, US Federal Reserve, IMF and World Bank
websites to source valuable supplementary information.
• Theoretical frameworks and concepts from the lectures need to be applied to the analysis
• The report should be appropriately referenced based on the resources found on MyKBS
(Academic Success Centre): https:
elearning.kbs.edu.au/mod/page/view.php?id=194263


https:
elearning.kbs.edu.au/mod/page/view.php?id=194263

Assessment Focus

Develop an investigative report into the:
A) Application of big data and analytics to central banking and;
B) The effects this will have over how these institutions operate over the next 5-10 years
In addition to your own thoughts and analysis, your report might also address the following areas:
• Use of sentiment analysis or similar approach to provide a qualitative interpretation of
central bank discussion papers.
• The enterprise data governance framework adopted by a central bank such as the
European Central Bank (ECB), the US Federal Reserve (The Fed) or the Bank of Japan
(BoJ).
• How big data can potentially assist with (monetary) policy rate-setting that helps stablise
inflation and reduce unemployment to its natural rate.
• How big data may be used to support financial stability.
• How big data could change both the internal operations of central banks and transform
the external economic and financial systems central banks analyse.
• Remember to consider your audience: practitioners in the financial services industry
Suggested Structure:
Introduction
• What is central banking?
Discussion
• Use of sentiment analysis or similar approach to provide a qualitative interpretation of
central bank discussion papers.
• The enterprise data governance framework adopted by a central bank such as the
European Central Bank (ECB), the US Federal Reserve (The Fed) or the Bank of Japan
(BoJ).
• How big data can potentially assist with (monetary) policy rate-setting that helps stablise
inflation and reduce unemployment to its natural rate.
• How big data may be used to support financial stability.
• How big data could change both the internal operations of central banks and transform
the external economic and financial systems central banks analyse.
• Your thoughts and recommendations (arguments should be backed by evidence).
Conclusion
• Summary of main discussion points.
References & Appendices


Task-Based Ru
ic

Section Criteria Marks Allocated
A) Research
and Description
of Cu
ent
Trends
Demonstrate an ability to describe, evaluate and conduct research
on cu
ent trends in big data and analytics as they relate to central
anks.

Integrate an understanding of analytics techniques, governance
and economic and financial theory policy to address the
application of big data and analytics to central banks.
4 marks


6 marks
B) Conclusions,
Predictions and
Reflections
Synthesise theory and practice taught in the course, personal
esearch and the reports provided to provide a logical, convincing
and supported conclusion/prediction on the effects of big data and
analytics on the future of central banking
10 marks
Referencing,
Presentation
and
Communication
Construct a report that follows a logical sequence of an executive
summary, introduction, clear sections and a summary/conclusion.
Judge the needs of the report audience (finance industry
professionals) and adapt the report structure, presentation and
jargon to address those needs.

Conduct research into the report topic based on provided readings
and personal research. Demonstrate an understanding of which
sources are most relevant to addressing the report focus.

Apply Harvard Referencing conventions to acknowledging all
sources used in constructing the report
6 marks



2 marks


2 marks
Total Marks 30
Page 4 XXXXXXXXXXKaplan Business School Assessment Outline

Important Study Information


Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.

What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions:
http:
www.kbs.edu.au/cu
ent-students/student-policies/.


Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.


Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the
esources on the MyKBS Academic Success Centre page. Click here for this information.
http:
www.kbs.edu.au/cu
ent-students/student-policies
https:
elearning.kbs.edu.au/course/view.php?id=1481
Answered 2 days After Jan 24, 2022

Solution

Sandeep answered on Jan 27 2022
125 Votes
Data Analytics in Accounting, Economics & Finance
Introduction
OECD defines “The central bank is the national financial institution that Exercises control over key aspects of the financial system”.
ECB “A central bank is a public institution that manages the cu
ency of a country or group of countries and controls the money supply – literally, the amount of money in circulation. The main objective of many central banks is price stability”.
Sweden created the world's first central bank, the Riksbank, or Sveriges Riksbank in 1668. The Bank of England came next in 1694, the model on which most modern central banks have been based. Central banks were established in many European countries during the 19th century. Napoleon created the Banquet de France in 1800 to improve the financing of his wars. The Bank of Finland was founded in 1812. In 1913 the United States created the Federal Reserve System through the passing of The Federal Reserve Act. Australia established its first central bank in 1920, Peru in 1922, Colombia in 1923, Mexico and Chile in 1925 and Canada, India and New Zealand in the aftermath of the Great Depression in 1934.
        
        Sveriges Riksbank        Bank of Finland, Helsinki
Primary functions of a central bank include:
Monetary policy
Financial stability
Reserve management
Banking supervision
Payments system
Discussion
It’s important for central banks to explore and experiment how big data might impact monetary and financial stability, as well as economic growth and employment. Central Banks don’t have to be ahead of curve. Sentiment indexes collected from internet blogs, online channels and social media post may, by subjecting to AI or ML algorithms, provide important and useful insight into consumer sentiment and market indecision .Since Global Financial crisis (sub-prime 2008 ,USA) have been keen to shore their capabilities to monitor financial risk and vulnerabilities to avoid another such meltdown.
Central banks defines big data by the so-called 3 “Vs” – high volume, velocity and variety.
Big data described by some as the new oil of the 21st century.
IBM -“Every day, we create 2.5 quintillion bytes of data — so much that 90% of the data in the world today has been created in the last two years alone. This data is big data.”
Microsoft- “Big Data addresses one of the most critical issues facing business today: how to gain value from the growing reams of complex data.”
Generally central banks have huge experience in dealing with the structured financial data variables because these financial data sets are believe to be ready for analysis since they are collected for compliance purpose and strictly adhering to institutional requirements.
Big data is classified in three ways:
Structured Data
Unstructured Data
Semi-Structured Data
Structured Data -Structured data is the easiest to work with as it is highly organized and structured. E.g. payroll data.
Unstructured Data –The general consensus is that no more than 20% of all data is structured and balance 80% of data is Unstructured or unorganised .ETL process for unstructured data is complicated and time consuming but worth .
Semi-Structured Data -Semi-structured data falls between structured and unstructured data...
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