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Question 1 ANP Bank started its operation as a commercial and investment bank three decades ago. The environment that the bank operates is highly competitive and volatile in terms of business risk. However, ANP Bank maintained the stable growth in all banking activities such as deposits and creation of loans. The ANP Bank is very concern in balancing their portfolio of assets mainly on corporate loans, retail banking, trade finance, contract for foreign exchange transaction. ANP is heavily invested in equity share on listed companies in Muscat Securities Market (MSM) as part of their speculative purposes to gain investment returns. Since February 2020, the global pandemic COVID-19 created huge shock on banking operations. As a result, the Central Bank has reduced the interest rate to safeguard the economy as a precautionary measure. You are required to answer the following questions based on the above scenario. a. Market risk which come from outside ANP Bank affecting their operation severely. Discuss four different types of market risks affecting the ANP Bank in the jurisdiction they operate? (Note: Your answer should be included a separate heading for the different types of risks and need to be explained with examples. Use relevant information from the case given above. Word count 250-300) 1 (15 marks)

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