Introduction to Financial Institutions Management

Teaching methodology of the course proceeds on three tracks: (1) theme specific lecture discussions outline
fundamental concepts and techniques necessary for the analysis; (2) students’ case studies presentations and
class discussions develop students’ critical thinking; and (3) a group term project applies concepts of the
course to contemporary financial service firm problems. Course grading will be based on the following:
1 Class
participation and cases discussion: 20%
2 Group
project: 30% (Presentation: 10%; Final WriteUp:
20%)
3 Exam:
50%
Class participation will be based on contributions to class discussion and students’ efforts in presenting and
analyzing cases. The group project will be graded on both completeness and reliability of data gathered for the
project, the quality of the analysis, and clarity and persuasiveness of the written and oral presentation.

This subject intends to explain the fundamentals of managing a financial institution. To this end the
studentsshould understand the structure of the financial system and the main problems posed by managing
financial
institutions in today’s environment. These problems are studied trough case studies which assess the
performance of financial institutions from a creditor’s, investor’s and regulator’s viewpoint. Subjects like
principles of asset liability management, strategic planning, pricing definition, risk management and responses
to a changing environment in prudential supervision should be understood at an introductory level
The students should be able to:
1 Recognize sound banking practices
2 Understand the various risks faced in managing a Financial Institution and how they may be managed
3 Examine the nature and management of bank capital and liquidity
4 Explain yield curves and interest rate risk management
5 Evaluate foreign exchange risks

1. Introduction to the financial system and what makes financial institutions special.
2. Risks in banking.
3. Bank financial statement analysis and performance evaluation.
4. Cost of bank funds and loan pricing.
5. Capital adequacy and the management of equity.
6. Asset liability management and specifically interest rate risk and liquidity risk.
7. Foreign exchange markets risk

NAO