CALIFORNIA STATE UNIVERSITY FULLERTON
MIHAYLO COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF FINANCE
Commercial Bank & Financial Institutions Management
(Finance 425)
(
(Spring 2013)
Instructor:
Classroom:
Class Time:
Office:
Office Hours:
Office Phone:
Email:
Bruce Xiao
SGMH - 1117
7:00-9:45 pm, Tuesdays
SGMH-5243
4:00 - 6:00 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
b) Written report
c) Oral presentation
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(12 points)
(4 points)
(4 points)
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 main purpose of the degree program at the Mihaylo College of Business &
Economics (College) at Cal State Fullerton is to provide you with the knowledge and
skills that prepare you for a successful career in business. In order to assist us in
achieving this goal, we will use a number of assessment tools to track your progress
throughout the College curriculum. Please expect to participate in College assessment
activities in several of your courses while at CSU, Fullerton. As you do so, you will
assist us in identifying our program’s strengths and weaknesses as well as areas for
potential improvement. In other words, you are making an important investment in the
value of your degree.
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):
Date
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)
Funding the Bank
10
Review of Midterm I
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)
Tuesday, May 21, 7:30-9:20 pm
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