Banking Management

Aims of the course

The purpose of the course is to develop an understanding of some key issues in bank management and financial sector regulation. To accomplish this objective, the course starts out with a background discussion on the structure of banks and their regulatory environment. The financial sector crisis that emerged in 2007 has put the spotlight much on the latter. Following this, the course focuses on key management issues in banking. In particular, we focus on bank lending and credit risk management,
interest rate risk management, the role of bank capital and strategic management issues.

Course syllabus

Session 1:
- Overview banking
- Introduction to risk management

Assignments/Material
[Chapters 1 through 6 (note: background - fast reading!)]

Chapter 7
“What We Know…”
“Why Banks are Dangerous”

Session 2:
- Discuss “Assessing a Company’s…”
- Interest-rate risk management (asset
liability management)

Assignments/Material
“Assessing a Company's Future Financial Health”
“Notes on Risk Management”
Chapters 8, 9

Session 3:
Topics
- Class discussion “Zeus case”
- Interest-rate risk management
(options/futures/swaps)
Assignments/Material
Zeus case
Chapters 13, 23, 24, 25

Session 4:
Topics
- Some regulatory issues
- Role of banks vs. markets, economics
of banking
Assignments/Material
“Regulation and the Evolution of the Financial Services
…”
Chapters 19 (pages: 526-556) and 20
“Bank Loans and Marketable Securities…”
“The Accelerating Integration of Banks and Markets”
“Deciphering the Liquidity and Credit Crunch 2007–
2008”
[Chapter 17 (note: important background reading!)]

Session 5:
- Cont’d regulation
- Credit risk management
Assignments/Material
[Chapter 10 (note: background reading!)]
AMTC case
Chapter 11, 12
Session 6
- Credit risk management (cont’d)
Assignments/Material
Chapter 12
10
- Role of capital, capital regulation
Chapter 20
“Theory of Risk Capital in Financial Firms”
“Regulatory Capital and the Supervision …”
“The Credit Crisis and Cycle-Proof Regulation”

Session 7
- Class discussion AMTC
- Financial development and economic
growth
- Introduction to future of banking
Assignments/Material
“Financial Innovation: Economic Growth versus
Instability”
BIS, OECD
“Europe’s Banks: Verging on Merging”

Session 8
- Future of banking
Assignments/Material
“The Evolving Landscape of Banking”

Course director(s)