CALIFORNIA STATE UNIVERSITY, FULLERTON SCHOOL OF BUSINESS

							                         CALIFORNIA STATE UNIVERSITY, FULLERTON
                           SCHOOL OF BUSINESS ADMINISTRATION
                                DEPARTMENT OF FINANCE



 Commercial Bank & Financial Institutions Management
                   (Finance 425)
                                           (Spring 2009)



Instructor:          Bruce Xiao
Classroom:           SGMH-1406
Class Time:          Thursday 7:00-9:45 pm
Office:              SGMH-4210D
Office Hours:        Thursday 6:00-6:55 pm or by appointment
Office Phone:        (714) 278-3329
Email:               bxiao@fullerton.edu

Textbook:            Bank Management, Koch, Timothy W. & Macdonald, Scott S.
                     Sixth Edition, 2006, by South-Western

Recommended          Wall Street Journal
Reading:

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

Course Policy:

1) Teaching Method: Lectures and discussions.

2) Grading:          Midterm I                   15%            15 points
                     Midterm II                  15%            15 points
                     Class Participation         20%            20 points
                     Group Presentation          20%            20 points
                     Final Exam                  30%            30 points
                     Total                      100%           100 points

                     Note:         A. Plus/Minus grading will be used.
                                   B. Scores will be curved.
3) Exams:             There are two midterm exams plus a final exam. No make-up exams.

                      Midterm I:     30 questions (27 multiple-choice and 3 essay questions)
                                     ( 0.5 point for each question and 15 points in total)

                      Midterm II:    30 questions (27 multiple-choice and 3 essay questions)
                                     ( 0.5 point for each question and 15 points in total)

                      Final Exam:    50 multiple-choice questions (50 x 0.5 = 25 points)
                                     5 essay questions (5 x 1.0 = 5 points)

4) Class Participation: A) Class attendance (1-10)
                        B) Interaction with instructor in the class (0-10)
                        C) Group project participation and contribution (team work)

5) Group Project:     Maximum number for each group is (4). Power Point is required for the
                      presentation.

                      A) Bank performance analysis and strategic advising          (10 points)
                      B) Written report                                             (4 points)
                      C) Oral presentation                                          (6 points)

6) Graduate Student: According to the requirement of Finance Department, there will be additional
                     work required for graduate students since the class is offered to both graduate
                     and undergraduate students. As a graduate student, you need to choose a topic
                     from the test book and prepare a 5-8 minute presentation with use of power
                     point. You need to present a topic before the instructor covers that topic in the
                     class. Your presentation will be evaluated by the class and the instructor. Your
                     presentation will affect your grade for the class.

Withdrawal policy: It confirms with the withdrawal policy of CSUF.

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.
Course Schedule (tentative):

Date         Topic                                                         Chapter

1/29         The Changing Banking Environment                                   1

2/5          Bank Organizations and Regulation                                  1

2/12         Analyzing Bank Performance                                         2
             Managing Non-interest Income and Non-interest Expense              3

2/19         Managing Interest Risk: GAP and Earning Sensitivity                5
             Managing Interest Risk: D-GAP & Market Value of Equity             6

2/26         Funding the Bank and Managing Liability                            8
             Midterm I (Chapter 1, 2, 3, 5, 6)

3/4          Managing Bank Liquidity                                            8
             Review of Midterm I
             (2-point deduction if this review session is missed)

3/11         The Effective Use of Capital                                       9

3/18         Overview of Credit Policy and Loan Characteristics                 10
             Midterm II (Chapter 8, 9)

3/25         Evaluating Commercial Loan                                         11
             Review of Midterm II
             (2-point deduction if this review session is missed)

4/8          Evaluating Consumer Loans                                          12

4/15         Customer Profitability Analysis and Loan Pricing                   10, 11, 12
             Problem Loans and Loan losses

4/22         Off-balance Sheet Activities
             Global Banking                                                     14
             (Group project due)

4/29         Guest Speaker (John Grauten, President of First Bank California)

5/6          Group Presentation (Group 1, 2, 3, 4)

5/13         Group Presentation (Group 5, 6, 7, 8)

5/20         Final Exam (7:30-9:20)
             (Chapter 10, 11, 12, 14, Guest Speaker)