THE UNIVERSITY OF HONG KONG SCHOOL OF ECONOMICS AND FINANCE FINA0104—Management of Commercial Banks Spring 2008
Instructor: Prof. Keith K.P. Wong Office Hours: 3:00-4:00 p.m., Fridays Web Site: http://www.econ.hku.hk/∼kpwong Course Objective:
Office: KKL 932 Tel: 2859 1044 E-mail: kpwong@econ.hku.hk
The focus of this course is on the economics of commercial banks. This course seeks to enhance your understanding of why commercial banks exist and what economic roles they play, the risks faced by banks in the lending process, off-balance sheet banking, deposit insurance, bank regulation, and risk management. The economics of financial contracting in the banking industry—from deposit contracts to derivative instruments—and the interplay between information, technology, and regulation in shaping contracts and institutions in the financial markets will represent the guiding theme of the course. The approach is analytical rather than descriptive. Required Text: Greenbaum, Stuart I. and Anjan V. Thakor, 1995, Contemporary Financial Intermediation, South-Western. Grading: The course grade is made up as follows: Mid-Term Test Homework Final Exam March 13 (Thursday) Biweekly To Be Announced 30% 10% 60%
Class Decorum: The basic principle is to be considerate to others. Telephones and pagers must be switched off during class periods.
FINA0104—Management of Commercial Banks Course Outline Date January 15 (Tuesday) January 17 (Thursday) January 22 (Tuesday) January 24 (Thursday) January 29 (Tuesday) January 31 (Thursday) February 5 (Tuesday) February 7 (Thursday) February 12 (Tuesday) February 14 (Thursday) February 19 (Tuesday) February 21 (Thursday) February 26 (Tuesday) February 28 (Thursday) March 4 (Tuesday) March 6 (Thursday) March 11 (Tuesday) March 13 (Thursday) March 18 (Tuesday) March 20 (Thursday) March 25 (Tuesday) March 27 (Thursday) April 1 (Tuesday) April 3 (Thursday) April 8 (Tuesday) April 10 (Thursday) April 15 (Tuesday) April 17 (Thursday) April 22 (Tuesday) April 24 (Thursday) Topic Introduction Basic Concepts Basic Concepts Basic Concepts Theories of Intermediation Theories of Intermediation Theories of Intermediation Lunar New Year’s Day The Credit Decisions The Credit Decisions The Credit Decisions Credit Rationing and Default Credit Rationing and Default Credit Rationing and Default Reading Week Reading Week Off-Balance Sheet Banking Mid-Term Test Off-Balance Sheet Banking Off-Balance Sheet Banking Off-Balance Sheet Banking Deposit Contracts and Insurance Deposit Contracts and Insurance Deposit Contracts and Insurance Bank Regulation Bank Regulation Bank Regulation Risk Management Risk Management Risk Management Reading
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Chapter 1 Chapter 1 Chapter 1 Chapter 3 Chapter 3 Chapter 3 No Class Chapter 5 Chapter 5 Chapter 5 Chapter 6 Chapter 6 Chapter 6 No Class No Class Chapter 7 In Class Chapter 7 Chapter 7 Chapter 7 Chapter 9 Chapter 9 Chapter 9 Chapter 10 Chapter 10 Chapter 10 Chapter 12 Chapter 12 Chapter 12