Case study banczero | new product development

  Case Study: Banc-Zero New Product Development

You must be sure that you provide answers for all these questions or issues:

1. What are Banc-Zero’s credit policies?

2. What type of clients are they trying to attract?

3. Who are Banc-Zero’s competitors?

4. Describe the difference between the over counter derivatives and

standardized traded derivatives

5. Describe how BancZero uses derivatives in its trading and asset/liability

management operations

6. What is the role of Banc-Zero’s Risk Management Group and who is the head

of the group?

7. To demonstrate your understanding of the new product approval process

you need to examine and comment on: Figure 2-The New Product Approval;

Figure 3-New Products Manager; Figure 5- Mexico City Office Organizational



8. What are Banc-Zero’s risks in the Currency Swap with Company A?

9. How could BancZero hedge some of the risks with Company A and what are

the limitations of doing so in the Mexican Market?

10. What will be Banc-Zero’s compensation (fees, etc.) if it were to do the swap

with Company A?

11. Who are Fernando Manzanilla and Ricardo Eliozondo?

12. What are some of the things that must take place before the swap project is


13. Describe the problem with Banc-Zero’s pricing and valuation model and the

swap project?

14. What were the results of the “stress test”?

15. What will be the problems in modifying the product to meet the current

stress test standards? What about changing the stress test standards?

16. What is the concern of Fernando Manzanillaj with the results of the stress


17. Assume that you are the Head of Risk Management in New York: Would you

approve this product? Give detailed reasons for your answer.

18. How would you improve Banc-Zero’s process for new products? How would

you change the sequence of activities?

19. What Have I Learned From this Case?

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.