Academic Year 2019-2020, Semester 2 SJTU Academic Calendar
IMPORTANT:
Course Objective:
Prerequisites:
Textbooks and References:
Textbooks:
Weight of Assessment:
Class Assignments:
Term Paper and Class Presentation
List of the Case Studies and Research Topics:
Class Participation:
Warning:
Suggested Periodicals:
Useful Links:
IMPORTANT:
- This is an all-in-English course on bank management with a focus on risk management.
- In this semester, this course will be offered online to all the students in SJTU (including foreign students and exchange students with SJTU ID)
- Main contact point: https://oc.sjtu.edu.cn/login/canvas
- Online classroom: https://zoom.com.cn/
- Online course website: https://www.icourse163.org/
- For students in other universities or countries, you can still get access to this course (MOOC, open course) at
- https://www.icourse163.org/
- Note: The new course will start in March, please search for Bank Management by Nan Li, Shanghai Jiao Tong University.
- This course is also suitable for students who are interested in following topics:
- Investment: portfolio choice
- Asset pricing: fixed-income securities, stocks and foreign exchange, derivatives (options, futures and swaps)
- Risk management: interest rate risk, market risk, credit risk
- Monetary Policy and Money Supply
- For any questions related to this course, please contact me via email: nanli@sjtu.edu.cn
Course Objective:
- This course builds on basic financial theory and the principles courses in economics. It addresses topics that are important for managing financial institutions in a rapidly changing international environment. Upon successful completion of the course, student should be able to understand the role of financial institutions in the economy; explain why banks are unique, and therefore merit special attention; to understand the analytical foundation underlying financial institutions management, and be able to use them to analyze important financial issues, including financial crisis; be familiar with risk management techniques to deal with the various risks banks and other financial institutions face.
Prerequisites:
- Introduction to Finance
- Money and Banking
- Students are expected to have some background in basic economic theory (macroeconomics and microeconomics), algebra, differential calculus, statistics, and a disposition to keep themselves informed of current developments in the area of banking and finance.
- Note: Please make sure you have adequate background in analytics, linear algebra, statistics, economics and finance. This is a course in finance, with focus on the risk management and quantitative analysis. This course is NOT suitable for students without any training in economics, statistics, analytics or linear algebra.
Textbooks and References:
Textbooks:
- Saunders and Cornett, Financial Institutions Management: A Risk Management Approach, 8th edition/International Edition, McGraw Hill, 2014 (FIM)
- Peter S. Rose and Sylvia C. Hudgins, Bank Management and Financial Services, 9th Edition, International Edition, McGraw-Hill, 2013 (BMFS)
- Peter S. Rose and Sylvia C. Hudgins, Bank Management and Financial Services, 9th Edition(英文缩减影印版), 中国人民大学出版社
- Peter S. Rose and Sylvia C. Hudgins, Bank Management and Financial Services (中文版), 9th Edition, 机械工业出版社, 2016
- John C. Hull, Risk Management and Financial Institutions, Second Edition, Pearson, 2010
Weight of Assessment:
- Final Exam : 40%
- Class Assignments : 30%
- Presentation and Term Paper : 20%
- Class Participation : 10%
Class Assignments:
- There will be 3-4 class assignments. Students are encouraged to discuss on assignments, but each student should finish the assignments on her or his own and hand in separate answers.
Term Paper and Class Presentation
- Students are advised to form a working group of no more than 5 students. Each group should write a term paper and present it in the class. Each group can choose to write a paper on a case study from the list given in the syllabus or a topic related to bank risk management. However, the topic chosen by each group is subject to the approval of the lecturer.
- Note: I expect each group to apply the methods/theory learned in the class to analyze the case or the topic of your choice. Simple review of the case or literature review of a topic will result in a fail grade in the project.
- Case Studies: The following questions should be addressed in your term paper if a case study is chosen,
- What has happened and how did it happen?
- To your opinion, what are the specific risks involved? You need to present arguments based on data or facts to support your opinion.
- As a bank manager, what lesson in can we learn from this case?
- Research Paper: The following questions should be addressed in your term paper if self-selected topic is chosen
- What is the question or problem?
- Why is this question important or interesting?
- How do you address this question, i.e. empirical analysis or theoretical analysis?
- Each group should prepare to present the term paper in 20 minutes with 3-5 minutes for Q&A. The presentation slides should be submitted before the presentation.
- The term paper should be no more than 20 pages with double spaces and fonts no smaller than 10pt. The data source and references should be clearly and completely documented.
- Timeline for term paper and presentation(subject to change)
- Week 3-5: Form group and decide on term paper topic
- Week 7: Bid for the case study and allocation of the topic.
- Week 9-16: Presentation of term paper
- Due date for term paper: the day of Final Exam
- A “Best Presentation” prize will be awarded to the group who does the best job in presentation. Each group needs to evaluate the performance of other groups and the Best Presentation prize will be awarded to the group with highest average score from group evaluation and lecture evaluation.
List of the Case Studies and Research Topics:
- AIG, Allied Irish Bank, Bankers Trust, Barings Bank, China Aviation Oil, Continental Illinois, Daiwa Bank, Lehman Brothers, LTCM, Société Générale,Washington Mutual Fund, Norther Rock, UBS Rogue Trader (2011), Citibank in 2008, and etc
- Online Banking, Mobile Payment, Micro Finance, Bitcoin, FinTech, P2P and etc.
Class Participation:
- Students are encouraged to actively participate in the class discussion. Such activities include good comments and questions raised in the class or on the online discussion forum (Blackboard), sharing relevant articles and even pointing out typos in the lecture notes or homework.
- A “Best Question” prize will be awarded to the student who raises interesting questions and/or makes good comments in the class or on the forum.
Warning:
- Plagiarism is taken very seriously. Students caught plagiarizing in class assignments, term paper, and/or exams in this course have been severely penalized. Any student caught cheating in the final exam will be failed in this course and reported to the school for further penalty.
Suggested Periodicals:
- The Economist www.economist.com
- The Financial Times www.ft.com
- The Financial Times Chinese www.ftchinese.com
- The Banker www.thebanker.com/
- The Wall Street Journal www.wsj.com
- The Asian Wall Street Journal www.awsj.com
- The Business Times business-times.asia1.com.sg
- Euromoney www.euromoney.com
- Asiamoney www.asiamoney.com
Useful Links:
- China Bank Regulatory Commission
- China Bank Regulatory Commission (English)
- The People's Bank of China
- The People's Bank of China (English)
- China Security Regulatory Commission
- China Security Regulatory Commission(English)
- Federal Reserve Board of Governor
- Federal Deposit Insurance Corporation
- Monetary Authority of Singapore
- Data Library of ACEM: http://202.120.22.10:8080/antai/index
- Data subscription of ACEM: http://202.120.22.10:8080/en-antai/resource/0506