Academic Year 2017-2018, Semester 1
Time and Location:
- Week 1-5: Thursdays 13:00 pm – 17:00 pm in Xin Shang Yuan S308
- Note: No class on October 5 (Public Holiday), and the class will be rescheduled to the regular classes in week 1-3 and week 5. So each class will last 4 hours.
Office Hour and Contact:
Office hour is on Thursdays 11:30 am -12:30 pm or by appointment. The most efficient way to contact me is by email, and I will usually reply in 24 hours.
This course builds on basic financial theory and the principles courses in economics to address topics that are important for managing banks in China. Upon successful completion of the course, students are expected to understand recent development in the Chinese banking industry and how banking reforms change the banking industry landscape in China. More importantly, students are expected to understand the special role of financial institutions in the Chinese economy and how to manage the risks faced by the banks in China in a rapidly changing international environment.
Students should have some background in basic macroeconomics, microeconomics, finance, algebra, differential calculus, statistics, and a disposition to keep themselves informed of current developments in the area of banking and finance in China as well as in the world.
Textbooks and References:
- 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, 8th Edition, Machinery Industry Press, 2011 (BMFS)
- Class Assignment : 50%
- Presentation : 20%
- Term Paper : 20%
- Class Participation : 10%
- There will be two class assignments. 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 important issues related to Chinese banking industry and apply the methods and techniques learned in the class to analyze the problems. The topic chosen by each group is subject to the approval of the lecturer. The term paper can be a case study, research paper or a referee report of the paper in the references. The following questions should be addressed in your term paper,
- What is the question and why it is interesting and important?
- What are your opinions? What are the arguments and empirical evidences to support your opinion?
- What are the policy implications or the implications on the risk management of Chinese banks of your research?
- Each group should prepare to present the term paper in Week 5, with 20 minutes presentation and 5 minutes Q&A. The presentation slides and term paper should be submitted before the presentation.
- The term paper should be no more than 20 pages with double spaces and fonts no smaller than 12 pt. The data source and references should be clearly and completely documented.
- Students are encouraged to actively participate in the class discussion. Such activities include comments and questions for lecturer in the class as well as for presenters in the group presentation.
Plagiarism is taken very seriously. Students caught plagiarizing in class assignments and/or term paper in this course will be severely penalized according to the school regulation.
- Data Library of ACEM: http://220.127.116.11:8080/antai/index
- Data subscription of ACEM: http://18.104.22.168:8080/en-antai/resource/0506
- World Bank Data: https://data.worldbank.org/country/china
- 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
- Federal Deposit Insurance Corporation
- Monetary Authority of Singapore
- Asiamoney www.asiamoney.com
- The Asian Wall Street Journal www.awsj.com
- The Banker www.thebanker.com/
- The Business Times business-times.asia1.com.sg
- The Economist www.economist.com
- Euromoney www.euromoney.com
- The Financial Times www.ft.com
- The Financial Times Chinese www.ftchinese.com
- The Wall Street Journal www.wsj.com
Topic 1: History of Banks, Special Role of Financial Institutions in China, 2017/9/14
- Lecture notes 1
- Ancient Technique: Ri Sheng Chang Bank Draft (CCTV National Treasure Program, video in Chinese with English subtitle)
- Naughton, Barry. Financial System. Chapter 19 in The Chinese Economy: Transitions and Growth. The MIT Press, page 449-483.
- FIM Chapter 1-2, 7
- Class Assignment 1 (Due on Thursday September 28, 2017)
Topic 2: Risks, Organization and Structure of Banking Industry in China, 2017/9/21
- Lecture notes 2
- China Banking Regulatory Commission 2015 Annual Report
- China Banking Regulatory Commission 2016 Annual Report (In Chinese)
- FIM Chapter 7-9, 20
Topic 3: Bank Reform, Liquidity Risk, Credit Risk, 2017/9/28
- Lecture notes 3
- FIM Chapter 2, 11, 17-19
- Credit Risk
Topic 4: Monetary Policy, Recent Development in Chinese Banking Industry and Financial Intermediation, 2017/10/12
- Lecture notes 3
- Monetary Policy
- FIM Appendix 1B on Monetary Policy Tools
- Monetary Policy Report of PBC in 2017Q1
- Monetary Policy Report of PBC in 2017Q2 (in Chinese)
- Balance sheet of PBC
- The First Set of Ren Min Bi in the People's Republic of China, CCTV National Treasure Program 2017/06/29, 2017/10/03
- Student Presentations, Evaluation Form
- Group 1: Bitcoin in China
- Group 2: Fintech in China
- Foreign Bank: Foreign Banks in China
- Group 3: Shadow Banking and WMP in China
- Term Paper and Class Assignment 2 Due on Thursday October 19, 2017
- Please submit hard copy to my office during 1:00-4:00 pm on Thursday October 19, 2017