Course Syllabus

Jump to Today

Time and Location:   

  • Week 2-6: Thursdays 6:00 pm – 9:00 pm (Sept. 23, 30, Oct. 7, 14, 21)


Office Hour and Contact:

 

Important Due Dates:

  • October 7, 6:00 pm: Class Assignment 1 Due
  • October 21, 6:00 pm: Class Assignment 2 Due 
  • October 30, 6:00 pm: Term Paper Due​


Course Objective:
This course builds on basic finance theory and economic principles and focuses on managing risks faced by commercial banks in China. Upon successful completion of the course, students are expected to understand the history and changing dynamics of the banking industry in China and how the Reform and Openness after 1979 changed the landscape of the banking industry in China. Students are also expected to understand the special role of financial intermediaries in the economy, the importance of managing risks faced by the banks in China, and how to appropriately regulate the financial system in the face of the rising Fintech. 

Prerequisites:
Students should have a background in introductory economics, mathematics, and statistics. Furthermore, students should be disposition to keep themselves informed of current developments in the financial system in China and the world.
 
Textbooks and References:

  • Lecture notes
  • Saunders and Cornett, Financial Institutions Management: A Risk Management Approach, 8th edition, International Edition, McGraw Hill, 2014 (FIM)
  • Peter S. Rose and Sylvia C. Hudgins, Bank Management and Financial Services, 8th Edition, Machinery Industry Press, 2011 (BMFS)

 

Grading Policy:

  • Class Assignment:                  50%
  • Presentation:                           20%
  • Term Paper:                            20%
  • Class Participation:                 10%


Class Assignments

  • ​There will be two class assignments. Students should finish the assignments and hand in answers on their own.  

 

Term Paper and Presentation

  • Students are advised to form a working group of no more than five students. Each group should write a term paper and present it in the class. Each group can choose to write a paper on essential issues related to the Chinese banking industry and apply the methods and techniques learned in the class to analyze the problems. The topic chosen by each group is subject to the approval of the lecturer. The term paper can be a case study, research paper or a referee report of the paper in the references. The following questions should be addressed in your term paper,
    • What is the question, and why is it interesting and important?
    • What are your opinions? What are the arguments and empirical evidence to support your opinion?
    • What are the policy implications or the implications on the risk management of Chinese banks of your research? 
  • Each group should prepare to present the term paper in Week 5, with 20 minutes of presentation and 5 minutes of Q&A. The presentation slides and term paper should be submitted on the course website before the presentation. 
  • The term paper should be no more than 20 pages with double spaces and fonts no smaller than 12 pt. The data source and references should be clearly and completely documented.

 
Class Participation

  • Students are encouraged to actively participate in the class discussion and the Discussion Forum on the course website. Such activities include good comments, questions, sharing relevant articles, and pointing out typos in the lecture notes. In particular, raising questions in the class and during group presentations are strongly encouraged.

 
Warning:
Plagiarism is taken very seriously. Students caught plagiarizing in the class assignments and/or term papers in this course will be severely penalized according to the school regulation.

 

Useful Links: 

​

 Suggested Periodicals:

 

Course Outline (Tentative subject to change)

Topic 1: Special Role of Banking Industry in China

  • Lecture notes 1 
  • Case Study:
    • The IPO Suspension of Ant Group: FinTech and Financial Regulation
    • 2008 Credit of Crisis

 

References:


​Topic 2:  Monetary Policy and Liquidity Risk

  • Lecture notes 2
  • Case Study:
    • What is Digital RMB?
    • Cryptocurrency and CBDC

References: 


Topic 3: Interest Rate Risk 

  • Lecture notes 3
  • Case Study:
    • Interest Rate Marketization in China
    • Shadowing Banking after 2008

References:

  • FIM Chapter 8-9

 

Topic 4:  Credit Risk 

  • Lecture notes 4
  • Case Study:
    • Credit Analysis
    • Microfinance

References:


Topic 5:  Student presentation on various topics related to the banking industry in China  

  • Covid-19 and Monetary Policy
  • P2P
  • Shadow Banking
  • Interest Rate Marketization in China
  • Mobile Payment
  • Digital Currency
  • Other self-selected topics​

Course Summary:

Date Details Due