CALIFORNIA STATE UNIVERSITY FULLERTON
MIHAYLO COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF FINANCE
Commercial Bank & Financial Institutions Management
(Finance 425)
(Spring 2014)
Instructor:
Classroom:
Class Time:
Office:
Office Hours:
Office Phone:
Email:
Bruce Xiao
SGMH - 1117
7:00-9:45pm, Thursdays
SGMH-5243
3:00 – 5:00 pm, Tu. Th or by appointment
(657) 278-8597
bxiao@fullerton.edu
Textbook:
Bank Management, Koch, Timothy W. & Macdonald, Scott S.
Seventh Edition, 2010, by South-Western
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 or permission of the instructor
Course Policy:
1) Grading:
Midterm I
Midterm II
Group Project
Final Exam
Total
Note:
20%
20%
20%
40%
100%
20 points
20 points
20 points
40 points
100 points
a) Plus/Minus grading will be used.
b) Scores will be curved.
3) Exams:
There are two midterm exams plus final exam.
Midterm I:
30 questions (27 multiple-choice and 3 essay questions)
Midterm II:
30 questions (27 multiple-choice and 3 essay questions)
Final Exam:
45 Questions (40 multiple-choice questions 5 essay questions)
4) Group Project:
Maximum group number for each group is 3. Power point is required for the
presentation. A hard-copy written report needs to be submitted by the due day.
a) Bank performance analysis and strategic advising
(12 points)
b) Written report
(4 points)
c) Oral presentation
(4 points)
Your 4 points in this category will be automatically deducted due to reading from
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notes, paper, computer or projector.
5) Graduate Student:
According to the requirement of Finance Department, there will be additional work
required for graduate students since this class is offered to both undergraduate and
graduate students. As a graduate student, you need to make a 5- minute presentation
with use of power point. The topic that you will present should be related to what has
been covered in the class. First, you need to present the author or instructor’s opinion
about a subject. After that, you will make reasonable argument why you do not agree
with the instructor or author. You need to present a topic right after the instructor
covers that topic in the class. Your presentation will affect your grade.
Withdrawal policy:
It confirms with the withdrawal policy of CSUF.
Assessment Statement:
The programs offered in Mihaylo College of Business and Economics (MCBE)
at Cal State Fullerton are designed to provide every student with the knowledge
and skills essential for a successful career in business. Since assessment plays a
vital role in Mihaylo College’s drive to offer the best, several assessment tools
are implemented to constantly evaluate our program as well as our students’
progress. Students, faculty, and staff should expect to participate in MCBE
assessment activities. In doing so, Mihaylo College is able to measure its
strengths and weaknesses, and continue to cultivate a climate of excellence in its
students and programs.
Assurance of Learning is an integral part of both our AACSB and WASC accreditation
and this statement helps keep students aware of this process. Attached is a copy of the
learning objectives for the overall BA, Business Administration program. These
objectives were developed over the years by the Undergraduate Programs Committee
and revised and approved by the College Senate. Student learning outcomes associated
with these objectives are measured in the core courses most closely matched with each
objective.
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.
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Course Schedule (tentative):
Topic
Chapter
Introduction
Banking and Financial Services Industry
1
Government Policies and Regulation
2
Analyzing Bank Performance
3
Managing Non-interest Income and Non-interest Expense
4
Managing Interest Rate Risk: GAP and Earning Sensitivity
7
Managing Interest Rate Risk: D-GAP & Market Value of Equity
8
Midterm I (Chapter 1, 2, 3, 7, 8)
Review of Midterm I
Funding the Bank
10
Managing Liquidity
11
The Effective Use of Capital
12
Midterm II (Chapter 10, 11, 12)
Review of Midterm II
Overview of Credit Policy and Loan Characteristics
13
Evaluating Commercial Loan Requests and Managing Credit Risk
14
Evaluating Consumer Loans
15
Customer Profitability Analysis and Loan Pricing
13, 14, 15
Problem Loans and Loan losses
13, 14, 15
Guest Speaker (John Grauten, President of First Bank California)
Off-balance Sheet Activities
Group project paper due
Group Presentation
Final Exam (Chapter13, 14, 15)
Thursday, May 2014 7:30-9:20 pm
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