Finance - Commercial Banking

Catalog description

An in-depth study of commercial banking. The primary focus is the value maximization of the bank, given the legal, technological, economic, and competitive constraints facing bank managers. A second focus is the central role played by commercial banks in financing small, middle-market, and large businesses. The course emphasizes bank investment decisions (e.g., underwriting loans), financing decisions (generating deposits, capital adequacy), risk-management decisions (loan portfolio diversification, managing credit risk and liquidity, hedging interest rate risk), bank business strategies, and the government regulations under which banks must operate. Prerequisite: FIN 413 or FIN 414. Enrollment restricted.