The required courses in the Banking concentration are designed to study money, capital markets, and banking as a means to understanding how financial markets determine interest rates and why different assets earn different rates of returns. The economic functions of financial services firms, the role and function of central banks in the economy and how the actions of central banks interacting with asset markets affect the macro economy will be studied.
The present structure of banking will be studied with particular emphasis on the relationship between commercial banking practices and economic stabilization goals. Issues in financial engineering, bank asset/liability management, capital adequacy, new dimensions in banking, and the current regulatory structure governing the operations of banking organizations are also included.
Students complete the Banking concentration by taking three required courses and one elective from the list of courses provided:
FIN 512
COMMERCIAL BANKING
The purpose of the course is to analyze the role of commercial banks in the financial system. The present structure of banking will be studied with particular emphasis on the relationship between commercial banking practices and economic stabilization goals. Issues in bank asset management, liability management and capital adequacy will be presented. Finally, new dimensions in banking will be considered.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.FIN 513
MONEY AND CAPITAL MARKETS
This course is designed to study money, capital markets, and banking as a means to understanding how financial markets determine interest rates and why different assets earn different rates of returns; the economic functions of financial services firms (especially commercial banks); the role commercial banks play in financial markets and how their operations affect the functioning of our economic system; the role of regulation of financial services firms (including thrifts and commercial banks in influencing their behavior; and the role and function of central banks in the economy and how central banks actions interact with asset markets to affects the macro economy.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.FIN 523
INVESTMENT ANALYSIS
This course provides an overview of the investment environment for the institutional money manager. The market mechanism, market equilibrium, the relationship between risk and return and the valuation of various investment instruments are investigated.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.FIN 557
INTERNATIONAL FINANCE
International Finance integrates the financial activities, institutions, and multinationals of the global finance arena. In addition to extending the tools of financial analysis to an international setting, the course studies the strategies available to a multinational because of operations in a multiple of countries. Topics include foreign currency and political risk, capital budgeting in a multinational setting, and cash flow management between countries.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.FIN 562
RISK MANAGEMENT
This course is designed as an introduction to derivative instruments; their characteristics, their pricing, the market's infrastructure, trading mechanics, and applications. The course introduces the binomial pricing model, the Black & Scholes continuous time pricing model, the associated properties i.e. "the Greeks." and forward pricing. The course examines the characteristics and market infrastructure for each of the four derivative instruments: foreard, futures, options, and swaps. Then trading strategies and hedging applications for each of these instruments are discussed. The course concludes with an introduction to Value at Risk.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.
FIN 798
SPECIAL TOPICS
Content and format of this course are variable. In-depth study of current issues in finance. Subject matter will be indicated in class schedule. Offered variably.
FIN 524
FINANCIAL STATEMENT ANALYSIS
This course develops financial analysis skills from the view of an outsider using a corporations publicly available financial statements. Techniques such as commonsizing, ration analysis, decomposition and the use of a comprehensive DuPont Model are used as a basis to teach analytical thought processes necessary to make projections for a company based on its financial statements. The use of spreadsheets as an analytical tool will be strongly emphasized.
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.