CALIFORNIA STATE UNIVERSITY, FULLERTON
SCHOOL OF BUSINESS ADMINISTRATION
DEPARTMENT OF FINANCE
Commercial Bank & Financial Institutions Management
(Finance 425)
(Spring 2009)
Instructor: Bruce Xiao
Classroom: SGMH-1406
Class Time: Thursday 7:00-9:45 pm
Office: SGMH-4210D
Office Hours: Thursday 6:00-6:55 pm or by appointment
Office Phone: (714) 278-3329
Email:
Textbook: Bank Management, Koch, Timothy W. & Macdonald, Scott S.
Sixth Edition, 2006, by South-Western
Recommended Wall Street Journal
Reading:
Course Objectives: The course is designed to:
A. Introduce the fundamental aspects of bank management;
B. Provide overview financial concepts applicable to bank management;
C. Understand decision making and problem solving in bank management.
Prerequisite: Finance 320
Course Policy:
1) Teaching Method: Lectures and discussions.
2) Grading: Midterm I 15% 15 points
Midterm II 15% 15 points
Class Participation 20% 20 points
Group Presentation 20% 20 points
Final Exam 30% 30 points
Total 100% 100 points
Note: A. Plus/Minus grading will be used.
B. Scores will be curved.
3) Exams: There are two midterm exams plus a final exam. No make-up exams.
Midterm I: 30 questions (27 multiple-choice and 3 essay questions)
( 0.5 point for each question and 15 points in total)
Midterm II: 30 questions (27 multiple-choice and 3 essay questions)
( 0.5 point for each question and 15 points in total)
Final Exam: 50 multiple-choice questions (50 x 0.5 = 25 points)
5 essay questions (5 x 1.0 = 5 points)
4) Class Participation: A) Class attendance (1-10)
B) Interaction with instructor in the class (0-10)
C) Group project participation and contribution (team work)
5) Group Project: Maximum number for each group is (4). Power Point is required for the presentation.
A) Bank performance analysis and strategic advising (10 points)
B) Written report (4 points)
C) Oral presentation (6 points)
6) Graduate Student: According to the requirement of Finance Department, there will be additional work required for graduate students since the class is offered to both graduate and undergraduate students. As a graduate student, you need to choose a topic from the test book and prepare a 5-8 minute presentation with use of power point. You need to present a topic before the instructor covers that topic in the class. Your presentation will be evaluated by the class and the instructor. Your presentation will affect your grade for the class.
Withdrawal policy: It confirms with the withdrawal policy of CSUF.
Academic
Dishonesty: It confirms with the official policy of CSUF.
The Department of Finance requires that students engaging in academic dishonesty receive a grade of F. In addition, Department policy requires that all individuals engaging in academic dishonest be reported to the Vice President, Student Affairs.
Academic dishonesty takes place whenever a student attempts to take credit for work that is not his/hers own or violates test-taking rules. Examples of academic dishonesty during test taking include looking at other students' work, passing answers among students or using unauthorized notes. When students sitting next to each other have identical answers, especially the dame mistakes, this may indicate academic dishonesty. Examples of academic dishonesty on out-of-class projects include submitting the work of others or quoting directly from published material without footnoting the source. If you have any questions about the proper use of outside sources, please consult with your professor.
Course Schedule (tentative):
Date Topic Chapter
1/29 The Changing Banking Environment 1
2/5 Bank Organizations and Regulation 1
2/12 Analyzing Bank Performance 2
Managing Non-interest Income and Non-interest Expense 3
2/19 Managing Interest Risk: GAP and Earning Sensitivity 5
Managing Interest Risk: D-GAP & Market Value of Equity 6
2/26 Funding the Bank and Managing Liability 8
Midterm I (Chapter 1, 2, 3, 5, 6)
3/4 Managing Bank Liquidity 8
Review of Midterm I
(2-point deduction if this review session is missed)
3/11 The Effective Use of Capital 9
3/18 Overview of Credit Policy and Loan Characteristics 10
Midterm II (Chapter 8, 9)
3/25 Evaluating Commercial Loan 11 Review of Midterm II
(2-point deduction if this review session is missed)
4/8 Evaluating Consumer Loans 12
4/15 Customer Profitability Analysis and Loan Pricing 10, 11, 12
Problem Loans and Loan losses
4/22 Off-balance Sheet Activities
Global Banking 14
(Group project due)
4/29 Guest Speaker (John Grauten, President of First Bank California)
5/6 Group Presentation (Group 1, 2, 3, 4)
5/13 Group Presentation (Group 5, 6, 7, 8)
5/20 Final Exam (7:30-9:20)
(Chapter 10, 11, 12, 14, Guest Speaker)