Introduction

Introduction to Financial Intermediation

  1. Overview and the Specialness of Banks: FIM 1.

  2. The Economic Role of Banks: FIM 2.

Operating Principles

Risk Fundamentals

  1. Bank Risks: FIM 7.

  2. Interest Rate Risk: FIM 2.

Measuring and Managing Interest-Rate Risk

  1. Measuring and Managing Interest-Rate Risk: FIM 9.

  2. Case 1: The Financial Crisis of 2007-2009: The Road to Systemic Risk, Darden 2009 (UV2551).

Core Risks

Market and Value at Risk

  1. Market Risk and Value-at-Risk: FIM 15.

  2. Case 2: VanCity Credit Union -- Strategy in Financial Services, Ivey 2004 (904M26).

Liquidity Risk

  1. Liquidity Risk: FIM 12.

  2. Case 3: Banc One Corp. -- Asset and Liability Management, HBS 1994 (294079).

Credit Risk

  1. Credit and Sovereign Risk: FIM 10, 14

  2. Aggregating Credit Risk: FIM 11.

Derivatives and Banking Insurance

Foreign-Currency Risk

  1. Foreign-Currency Risk: FIM 14.

  2. Case 4: Risk Management at Wellfleet Bank, HBS 2010 (110011).

Foreign-Currency Risk

  1. Futures, Forwards, and Swaps: FIM 22, 24.

  2. Liability Risk, Liquidity Risk, and Deposit Insurance: FIM 18-19.

Risk and Regulation

Banking Regulation

  1. Capital Adequacy: FIM 19-20.

  2. Case 5: Crédit Général, S.A., HBS 1996 (296011).

Banking Regulation

  1. Midterm Review.

  2. Case 6: First American Bank - Credit Default Swaps, HBS 2003 (203033).

The Practice of Bank Management

Bank Analysis and Information Resources

  1. Finance (FIST) Lab: Date and Time TBA.
  2. Introduction to BankScope and other banking-related information systems.

Loan Sales

  1. Loan Sales and Securitization: FIM 25-26.

  2. Case 7: Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A), HBS 2001 (201072).

Current Challenges in Bank Management

  1. Guest Lecture: speaker and topic TBD.

  2. Case 8: Basel III - An Evaluation of New Banking Regulations, Ivey 2011 (910N29)