Management of Financial Institutions

Course Description

This course focuses on an understanding of the major financial institutions in Canada and the competitive and regulatory environment in which they operate. Emphasis will be placed on the practical implications of recent innovations in financial theory to the management of interest rates, liquidity and credit risk. The course will use current readings and cases to examine management decisions in financial institutions in Canada: chartered banks, insurance companies, trust and mortgage loan companies, investment banks, credit unions and pension funds. The aim of the course is to teach students to understand and work with econometric techniques used in investment analysis and risk management.

Course Contents

• Fundamental Forces of Change in Banking
• Bank Organizations and Regulation
• Analyzing Bank Performance
• Alternative Models of Bank Performance
• Bank Dynamics
• The Noninterest Side of the Bank
• Pricing Fixed Income Securities
• Review and Bank Dynamics Decision
• Managing Interest Rate Risk
• Financial Futures, Forward Rates and Swaps Chapter
• Managing Liabilities, Bank Dynamics Decision
• Managing Liquidity and Cash Assets
• Bank Dynamics Decision
• Overview of Credit Policies and Loan Characteristics
• Evaluating Consumer Loans
• Loan Pricing
• The Investment Portfolio
• Thanksgiving Holiday
• Active Investment Strategies