Anthony Saunders and Marcia Cornett Financial Institutions Management Pdf by ayz14809

VIEWS: 936 PAGES: 3

Anthony Saunders and Marcia Cornett Financial Institutions Management Pdf document sample

More Info
									                              Risk and Regulation ECGA XXXX

Summer 2010
Department of Economics
Prof. Philippa Girling
Office:
Email: pg@garritygraham.com;
Office Hours: By appointment
Website:

This course covers the significant features of the regulatory environment that are most important
to the risk management of financial institutions. An overview of the structure of modern financial
institutions and the markets in which they exist will precede a review of the institutional
regulatory framework in which they operate. This will include a discussion of the important
regulatory bodies, such as the Federal Reserve, Office of the Comptroller of the Currency (OCC),
Securities and Exchange Commission (SEC), Financial Services Authority (FSA), and the Bank
for International Settlements (BIS). Major regulations and their implications for risk management
will be covered with particular attention to Basel II. In addition, important accounting and tax-
related issues will be reviewed, where applicable.

Useful background*:

      Mathematics: This course will not involve much mathematics. However, a solid
                    undergraduate background, including calculus and basic probability will be
                    helpful.
      Economics: A basic understanding of microeconomic and macroeconomic theory is
                    assumed.
      Finance:     A basic understanding of finance theory, financial instruments, and the
                    structure of markets is assumed.

* The basics of this useful background will be covered in class.


Exams and exercises: There will be one final exam during the term. In addition, graded exercises
and case studies will be assigned periodically and discussed in class.

Computer programs: The main software package to be used is Excel.

Grading: The final grade is based on the following:

       Class participation                   20%
       Exercises and case studies            30%
       Final                                 50%

Grades are earned according to the following point scale: 95 – 100 = A; 90 – 94 = A-; 87 – 89 =
B+; 83 – 86 = B; 80 – 82 = B-; 77 – 79 = C+; 73 – 76 = C; 70 – 72 = C-; 60 – 69 = D; grade <
60 = F



                                                1
 Topic                                       Lecture Outline
   1     The structure of modern financial institutions
   2     The structure of modern financial markets
   3     History and economic basis for regulation
   4     BIS, Basel I & II
   5     Basel II cont’d
   6     The role(s) of the Federal Reserve
   7     The alphabet: (OCC, SEC, FDIC, NYSE, FINRA, SIFMA, NYSE, MFA), state
         regulators, and the influence of foreign regulators
   8     The regulation of insurance companies, asset managers, hedge funds, and private
         equity funds
   9     Accounting issues
  10     Topics of Ethics in Risk Regulation
  11     Final Examination

References:*

   1. Financial Institutions Management: A Risk Management Approach, by Anthony Saunders
      and Marcia Millon Cornett ((McGraw Hill Higher Education; 6th edition (January 1,
      2008))

   2. Basel II: International Convergence of Capital Measurement and Capital Standards: A
      Revised Framework – Comprehensive Version” (Basel Committee on Banking
      Supervision Publication, June 2006). www.GARPDigitalLibrary.org).

   3. “An Explanatory Note on the Basel II IRB Risk Weight Functions” (Basel Committee on
      Banking Supervision Publication, July 2005). www.GARPDigitalLibrary.org).

   4. “Principles for Sound Liquidity Risk Management and Supervision” (Basel Committee on
      Banking Supervision Publication, September 2008) http://www.bis.org/publ/bcbs144.pdf.

   5. “Guidelines for Computing Capital for Incremental Risk in the Trading Book –
      Consultative Document” (Basel Committee on Banking Supervision Publication, January
      2009) http://www.bis.org/publ/bcbs149.pdf.

   6. “Revisions to the Basel II market risk framework– Consultative Document” (Basel
      Committee       on     Banking      Supervision Publication,   January    2009)
      http://www.bis.org/publ/bcbs148.pdf.

   7. “Banking Regulation: Its Purposes, Implementation, and Effects” (Federal Reserve Bank
      of Boston, 5th Edition, 2000) This book can be obtained in electronic form from the
      Federal Reserve Bank of Kansas City’s website, located at http://www.kc.frb.org, under
      Publications or Supervision and Risk Management

   8. “Panic of 1907” (Federal Reserve Bank of Boston) This book can be obtained in
      electronic form from the Federal Reserve Bank of Kansas City’s website, located at
      http://www.kc.frb.org, under Publications or Supervision and Risk Management
                                             2
* Additional material may be assigned at the instructor’s discretion




                                         3

								
To top