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Financial Institutions Management (BA214IU)

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  • Class cancellation - 1pm Saturday 21st October 2017 As a reminder, I am out of town at a business conference today so the class, Financial Institutions Management 1pm Saturday 21st October, is cancelled this week.There will be ...
    Posted 20 Oct 2017, 18:53 by Diep Ho
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  • FIM Assignment 2018.docx   0k - 5 Dec 2018, 17:07 by Diep Ho (v1)
  • FIM Lecture All Notes - windows2.pptx   0k - 15 Sep 2017, 22:58 by Diep Ho (v1)
  • Lecture 9 - Derivatives and Hedging.pptx   1064k - 24 Apr 2014, 22:53 by Diep Ho (v1)
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COURSE DETAILS:

Lecturer: Dr. Ho, Diep, PhD [email protected] (Tel. 0946 317 379, Room A207)

Teaching Assistant: TBA

Should the students wish to meet the staff outside the consultation hours, they are advised to make appointment in advance. 

Course Aims:

Financial Institutions

Reuteurs Financial Institutions Feed

This course’s objective is to provide a conceptual framework of current financial institutions issues and the risk management of these institutions. This course is divided into two parts. The first part focuses on the descriptive financial institutions and how they are positioned in the economy. The second part focuses on the risk management of the financial institution. The issues of the financial institution industry including public policy issues, the impact of the economic environment, managing interest rate and liquidity risk, services provided, changing regulations and the vast array of current challenges facing the industry are covered in this course. Upon completion of this course, a student should is expected to be able to identify and describe the principal risks that financial institutions face, and explain how financial institutions manage these risks.

Prerequisite course:

Units of Credit:
This course is worth 3 credits. 

Teaching times and Locations:
Lecture time:  Sat 1:00pm-3:30pm
Venue:  A2.311

Academic Integrity:

Integrity is critical to the learning process and to all that we do here at HCMIU. A student’s responsibilities include, but are not limited to:

Attendance:
Regular and punctual attendance at lectures and seminars is expected in this course. University regulations indicate that if students attend less than eighty per cent of scheduled classes they may be refused final assessment. Exemptions may only be made on medical grounds. 

While we do not penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the student's class participation grade. Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Homework:
Homework and other assignments are expected to be completed on time. Late Assignments will not be accepted unless due to documented serious illness or family emergency.

All electronic devices must be turned off prior to the start of each class meeting.

Laptops, tablets, ipad, cell phones, smartphones and other electronic devices are a disturbance to both students and the lecturers.

Calculator:
You need a calculator for this class. A scientific calculator is good enough; you do not need to buy a financial one. As a rule, you will use spreadsheets for homework assignments, and the calculator for the simple examples in class, and, most importantly, for the exams. It is a very bad idea to wait for the last week before buying a calculator.

Study Groups:
It is highly encourage that you regularly review the readings and class notes in a study group. Don’t wait until exam week to set up such a study group. By then it’s too late. You are encouraged to work on the problem sets with your study group, but you must hand in your own answers for individual tasks.

Assessment Details:
The final grade is computed as follows:
Class Participation                          5%
Mid-Term Exam (One Hour)          30%
Written Assignment                      25%
Final Exam (Two Hours)                40%
Total                                           100%

Exam shall be semi-open book.  Each student, may bring in a calculator and one A4 cheat sheet.  Two sides of the sheet may be filled with anything the student wishes, but must be handwritten by him/her (no photocopying).

In addition, since I wish to emphasize practical skills, students shall complete an assignment that use actual data--and to reflect how most companies conduct business, students shall form groups to handle these assignments.  Groups shall comprise three to five students – no less, no more. In addition, all group members shall score their team mates on how well they have contributed to the assignment (see "Peer Group Participation Form.doc" in the file cabinet section).

Class participation is important and will be explicitly rewarded (5% of the total grade). Effectively, the class participation grade may change a grade near a cutoff.  While we do not penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the class participation grade.  Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Textbook: 
  1. Anthony Saunders and Marcia Cornett. Financial Institutions Management: A Risk Management Approach, 6e, McGraw-Hill, 2008.
  2. Frans de Weert, Bank and Insurance Capital Management, Wiley, 2011.
Course outline:

Week Topics Textbook
    1       Introduction and and Insurance Companies, Securities Firms and Investment Banks Chapters 1, 3 & 4
    2       Mutual Funds, Hedge Funds, Real Estate, Private Equity, Venture Capital, Finance Companies, Banks and Others Chapters 2, 5 & 6
    3       Market Risk I: Foreign Exchange and Interest Rate Risk I Chapters 8 & 14
    4       Market Risk II: Interest Rate Risk II and Market Risk Chapters 9 & 10
    5       Credit Risk I and Credit Risk II Chapters 11 & 12
    6       Off-Balance Sheet Risks and Sovereign Risk Chapters 13 & 15
    7       Technology, operational and Liquidity risks Chapters 16 & 17
    8       Mid-Term Exam 
    9       Liability, Liquidity, Deposit Insurance and Capital Adequacy Management Chapters 18, 19 & 20
   10       Derivatives and Hedging I Chapters 23, 24 & 25
   11       Derivatives and Hedging II Chapters 23, 24 & 25
   12       Loan Sales and Securitisation I Chapters 26 & 27
   13       Loan Sales and Securitisation II Chapters 26 & 27
   14Revision 
   15Revision