SFU 1492 Commercial Bank Financial Management - RE-SIT EXAMINIATION

APPLIES TO ACADEMIC YEAR 2013/2014

SFU 1492 Commercial Bank Financial Management - RE-SIT EXAMINIATION


Responsible for the course
Emanuel Blattner

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction


    Learning outcome
    Acquired knowledge
    After taking the course, the students shall be able to explain key concepts and give an account of the tools used in asset and liability management, statement of income and cash flow analysis, the use of derivates in asset an liability management.

    Examples of concepts that students shall be able to explain: balance sheet, statement of icnome and cash flow in financial institutions, the term structure of interest rates, repricing gap, duration gap, duration of equity, futures and forwards, interest rate swaps, interest rate options.

    Acquired skills
    After taking the course, the students shall be able to (a) apply knowledge (i.e. concepts and skills) in analyses and discussions on asset and liablility problems, (b) distinguish between relevant and irrelevant information, and (c) give written answers to questions so that the readers understand the applied methods and conclusions. Examples:
    • Analyzing financial reports of financial institutions
    • Risk in financial institutions
    • Thes use of the term structure of interest rates in asset an liablility management
    • The calculation of the repricing gap
    • Duration gap calculations
    • Equity duration
    • The use of on-balance immunizing in asset and liablility management
    • The use of derviates in off-balance immunizing

    Reflection
    After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the asset an liablility managementt field.

    Prerequisites
    Basic knowledges in finance are required.

    Compulsory reading
    Books:
    Saunders, Anthony, Marcia Millon Cornett. 2011. Financial institutions management : a risk management approach. 7th ed. McGraw-Hill/Irwin. Ny utgave kommer ca oktober 2013

    Recommended reading
    Books:
    Hubbard, R. Glenn & Anthony P. O`Brien. 2013. Money, banking, and the financial system. 2nd ed. Pearson

    Course outline
    • Balance, statement of income and cash-flow analysis
    • The term structure of interest rates
    • Fixed interest securities and effective interest
    • Interest rate risk and the repricing gap theory
    • Duration
    • Interest rate risk and the duration gap theory
    • "On-balance" immunizing
    • "Off-balance" immunizing

    Computer-based tools
    Excel spreadsheets.

    Learning process and workload
    The course is lectured over one semester and will include lectures, case studies and home assignments.

    It is mandatory for students to solve and pass three home assignments to obtain final grade in the course.

    The home assignments must be solved by groups of three or less students. Exact deadlines for handout and delivery of home assignments will be given when the course starts.

    Recommended use of hours:
    Activity
    Use of hours
    Lectures
    28
    Assignments
    65
    Reading literature
    104
    Final exam
    3
    Total use of hours recommended
    200


      Examination
      A three hour individual written exam concludes the course.

      Examination code(s)
      SFU 14925 Written exam, counts 100% to obtain a final grade in SFU 1492 Commercial Bank Financial Management, 7,5 credits.

      Examination support materials
      Calculator TEXAS INSTRUMENTS BA II Plus™ is allowed.
      Exam aids at written examinations are explained under exam information in our web-based Student handbook. Please note use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids

      Re-sit examination
      This course was lectured for the last time spring term 2011. Last re-sit examiniation is offered auttumn 2013.
      To attend re-sit examiniations it is required that the three assignments included in the course are passed.

      Additional information

      Semester

      Oversettelser