M 6:00-8:50 - Room 5-75
A. Sinan Cebenoyan
Office: K-MEC 9-191
Phone: 998-0426
Fax: 995-4233
Email: acebenoy@stern.nyu.edu
Office hours available by request.
Course Objective and Description:
This course will focus on the financial
management and regulation of financial institutions, with a primary focus
on commercial banks.
Texts:
Anthony Saunders, Financial Institutions Management: A Modern Perspective, 3rd edition, Irwin-McGraw Hill, 1999.
Additional articles will be handed
out in class.
Grading:
Mid-term Exam (35%)
Final Exam (50%)
Problem Sets and Class Participation
(15%)
Course
Outline:
I. Financial Intermediation: An Overview
A. Structure and Regulation of the Financial Services Industry
Mitchell Berlin "Bank Loans and Marketable Securities: How Do Financial contracts Control Borrowing Firms?" Business Review Federal Reserve Bank of Philadelphia, July/August 1987.
Douglas W. Diamond, "Financial Intermediation
as Delegated Monitoring: A Simple Example," Federal Reserve Bank of Richmond
Economic
Quarterly (Summer 1996).
George Hane, "The Banking Crises
of the 1980s and Early 1990s: Summary and Implications," FDIC Banking
Review, Vol. 11, No. 1 (1998)
George Benston and G. Kaufman, "FDICIA
after Five Years: A Review and Evaluation" Journal of Economic Perspectives,
1997.
A. Loans and Loan Commitments.
A. Liquidity and Liability Management.
A. Sinan Cebenoyan, and Philip Strahan,
"Risk Management, Capital Structure, and Capital Budgeting in Financial
Institutions" working paper, NYU, 2001.
A. Interest Rate Risk: Term Structure and Gap and Duration Models
Katerina Simons, "Measuring Credit Risk in Interest Rate Swaps," New England Economic Review (November/December 1989).
Richard Bookstaber "Global Risk management: Are We Missing the Point?" Journal of Portfolio Management, 1997.
Franklin Edwards "Hedge Funds and the Collapse of Long Term Capital Management" Journal of Economic Perspectives, 1999.
J.P. Morgan RiskMetrics�Technical
Manual
A. Moral hazard and/or financial panic?
Morris Goldstein, �The Asian Financial Crisis,� International Economics Policy Briefs No. 98-1 (March 1998).
Paul Krugman, �What Happened to Asia?� January 1998 (available on his web site: web.mit.edu/krugman/www/).
Paul Krugman, �Will Asia Bounce Back?´March 1998 (available on his web site: web.mit.edu/krugman/www/).
Steven Radelet
and Jeffrey Sachs, �What Have We Learned , So Far, From the Asian Financial
Crisis?� January 1999 (available on Nouriel Roubini�s
Asia Crisis Homepage, at www.stern.nyu.edu/~nroubini/asia/AsiaHomepage.html)
VI. Technology, Competition, and Regulatory Change in Financial Services
A. Technology and Operating Costs
Berger, Allen N., R. Demsetz, and P. Strahan, " The Consolidation of the Financial Services Industry: Causes, Consequences, and Implications for the Future" Fed of NY, Staff Reports, Number 55, December 1998.
Richard
J. Sullivan, "How Has the Adoption of Internet Banking Affected Performance
and Risk in Banks?"
Financial Industry Perspectives, Kansas City Fed, December 2000.
C. Product and Geographic Expansion
Cebenoyan, A. Sinan, Elizabeth Cooperman, Charles Register, and Sylvia Hudgins �Cost Efficiency and Nontraditional Assets: Evidence from Stock Thrifts�, Real Estate Economics (formerly AREUEA journal) v. 26, 1998, 4:695-718.
Solutions to selected chapter problems (in Word format)
Announcements:Please check this space regularly
for important announcements related to this course.