Financial Institutions

Catalog description

Financial Institutions is a graduate level seminar on the financial management techniques used by financial institutions. What distinguishes financial institutions from corporations is the financial nature of both their assets and liabilities. Financial institutions are central to the financial system and consequently require and receive special regulation. This course discusses tools for identifying, measuring, evaluating, and managing risks including interest rate, credit, foreign exchange, liquidity, market, sovereign, operational, and systemic risk. This course also examines the causes, the recommendations proposed, and the solutions implemented for the World Financial Crisis of 2007 to 2010 through the perspective of The Squam Lake Report. We will also discuss Financial Bubbles and the 2023 collapse of Silicon Valley Bank.