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FINC-244 Management of Financial Institutions
The course will be organized into interconnected modules. Each module will draw heavily on concepts of modern financial theory and risk management as practiced by leading firms. The first module will provide a contextual framework for assessing current and future industry structure, competitiveness and risk. This module will provide students with perspective on the management issues facing commercial and investment banks.
With this industry perspective as background, the second module will concentrate on industry and company financial statement analysis, performance analysis and company valuation techniques. The levers for managing risk, return and growth to enhance enterprise value will be examined. The techniques learned and conclusions reached will be used in assessing the creation of value in FIs and in assessing corporate strategy development and financial management policies.
Armed with this knowledge of profit performance and strategy development, the third module will deal with a critical dimension of FI management: the management of interest rate risk and overall firm asset/liability management as a key driver of profitability and market value. Techniques for spread management and hedging consistent with a firm’s strategies and objectives will be examined in detail.
The fourth module will be a more specific assessment of risk, return trade-offs of portfolio allocation decisions as well as those of funding, liquidity and capital management. This module will also deal extensively with FI’s drive for additional diversification and new sources of income. The emphasis here will be on financial engineered products such as securitization of assets, corporate finance, secondary market making, and trading and arbitrage activities. This module will take the perspective of the “new wholesale banking”, which encompasses Investment banking.
The fifth module will concentrate on modern retail banking and brokerage including the commercial loan aspects of major consumer oriented banks. The evolution of commercial and consumer loan practices and pricing will be examined from a risk, return standpoint and also from the perspective of developing different product market segments.
The final module will look ahead toward the next Century. The module will concentrate on new product market development, technology and distribution innovation as well as strategies for geographic consolidation, corporate restructuring and expansion of global reach. The future outlook for the FI industry will also be discussed.
Credits: 3
Prerequisites: MSB Students, FINC 211
Course syllabi
The following syllabi may help you learn more about this course (login required):
Fall '09:
Parker, Robert S
(file download)
Additional syllabi may be available in prior academic years.
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