University of Scranton

                                         The Arthur J. Kania School of Management

                                                  Economics/Finance Department

 

 

Course Number:  FIN 473                                        Semester:  Spring 2002

Course Title:  Financial Institutions             Office: Brennan Hall 310

Instructor:  Dr. John N. Kallianiotis              Office Hours: T-Th:

10:00 - 2:00 P.M. and

5:30-6:30 and by appointment

Telephone:  941-7577 and 941-4048

E-mail: jnk353@uofs.edu

 

 

REQUIRED TEXT:  Financial Markets and Institutions, Third  edition, by Mishkin and                            Eakins, Addison-Wesley, Reading, Massachusetts, 2000           

          The Wall Street Journal (subscription is suggested)

 

 

DESCRIPTION OF COURSE:

 

This course is designed to study the financial markets and financial institution, including depository and nondepository institutions.  Topics include regulation, operation, and management of financial institution, financial instruments, interest rate principles, risk management strategies, loan analysis, and asset/liability management.  Insurance and pension principles, and investment banking are covered.

 

 

OBJECTIVES:

 

The major objectives of the course are:

 

1.         To familiarize students with the principles, concepts, and terminology of   Financial Institutions.

 

2.         To learn the regulations, operations, and management of the assets and liabilities of financial institutions.

 

3.         To master financial instruments, interest rate, and risk management.

 

 

 

 

 

 


TOPICS COVERED:

 

Topics                                                                                   Classroom Hours

 

1.                  Introduction:

1.   Why Study Financial Markets and Institutions              4

1.              An Overview of the Financial System  

 

II.       Principals of Financial Markets                               8

1.              Understanding Interest Rates

2.              The Behavior of Interest Rates

3.              The Risk and Term Structure of Interest Rates

4.              The Theory of Efficient Capital Markets

 

II   Central Banking and the Conduct of Monetary Policy            6

7.   The Structure of Central Banks and the Federal

Reserve System

8.   The Conduct of Monetary Policy: Tools, Goals, and

Targets

 

IV.      Financial Markets                                     4   

1.              The Money Markets

2.              The Capital Markets

3.              The Mortgage Markets

4.              The Foreign Exchange Market

13.       The International Financial System and Monetary Policy

 

1.              The Financial Institutions Industry                       8

14.       The Theory of Financial Structure

1.              The Banking Firm and Bank Management

2.              The Commercial Banking Industry: Structure and Competition

3.              Thrifts: Savings and Loans and Credit Unions

4.              Banking Regulation

5.              Pension and Insurance Companies

6.              Finance Companies and Financial Conglomerates

7.              Securities Markets and Firms

 

VI.       The Management of Financial Institutions                  4

22.       Risk Management in Financial Institutions

23.  Hedging with Financial Derivatives I: Forwards and Futures

1.              Hedging with Financial Derivatives II: Options and Swaps

 

 

 

 

 

 

 

 

 

 

 


CLASS MEETING:

 

The class meets for 28 sessions of 1 hour and 15 minutes duration, plus a final     exam.

 

TEACHING METHODS AND ASSIGNED READINGS:

 

The teaching method will be lectures and classroom discussions. Homework assignments and a project will be announced in the classroom.  There will be three exams* (25% each) and your assignments together with your attendance, class participation, term paper, and performance will count for 25% of the course.  Students cannot miss more than two weeks (4 lectures) during the semester.

 

The Grading scale is the following:

 

0 - 59:   F         76 - 79:  B-

60- 63:   D         80 - 83:  B

64- 67:   D+        84 - 87:  B+

68 - 71:  C         88 - 91:  A-

72 - 75:  C+        92 - 100: A

 

The course will give students the opportunity to master a topic and write a paper on it. The paper will be presented in the classroom the last week of the semester (5/5 - 5/10/2002).  Students are expected to participate in the class discussion. They will be exposed to a wide range of issues and concepts related to Financial Institutions.

 

 

 

 

 

 

 

 

 

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·            The first exam on February 26, 2002, the second on April 9, 2002 and the Final Exam will be announced in the classroom.

 

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