[Overview, Organization & Objectives][Grading][Professionalism][Outline]

   Class Information

• Overview:  The course surveys the structure and activities of financial intermediaries; asset-liability management; the effects of government regulation on financial institutions; performance of financial intermediaries; central banking and the tools of monetary policy. 

• Organization: The class organization is lecture-discussion.   I expect a high degree of intellectual interchange. Please note that interchange indicates two directions.  Your participation is crucial for your understanding of the concepts of the course.  Materials will be provided through class lectures, internet, and electronic mail. There will be un-graded homework assignments and internet exercises that review and reinforce the concepts discussed in class. The presentation of a current event is also required of all students. There will also be three mid-term examinations and a cumulative final exam.

• Prerequisite: FIN 300, Financial Markets, or consent of me.
  
  
• Objectives: The content objectives of the course are to improve your understanding of:
  
• the economic functions of financial intermediaries,
• the roles intermediaries play in the domestic and international financial markets,
• the technologies and innovations occurring among financial institutions,
• the objectives of regulation of financial intermediaries,
• principles of risk and financial management of financial intermediaries, and
• the basic role of central banks and the conduct of monetary policy.

           Additionally, this class will:

• enhance your critical thinking skills and
• demonstrate the role of technology, computers and quantitative models in the decision processes of financial intermediaries.

• Reading Material:  Financial Institutions Management 3rd Edition, Saunders. Class notes and assignments will be available on the internet. The materials used in class will be online at least 22 hours prior to class. The home page is located at http://www.cba.uiuc.edu/~pellinge/.

• Examinations: There will be three examinations and a final examination, which will be comprehensive, at the end of the semester. Reserve these dates since no make-up examinations will be provided without prior arrangement.

• Class Participation: Most of our class periods will be devoted to covering material from the textbook, assigned readings, current developments, and un-graded assignments. Class participation via discussion, questions, and contributions of examples from current events is required. A portion of your grade (4%) will depend on your contribution to the class. We will work assignments in class and participation is expected.
  

• Current Events: The economic, political, technological and regulatory environments faced by financial institutions are constantly changing. Keeping abreast of the current events and issues facing financial institutions is a major focus of this course. One way to accomplish this is to read the Wall Street Journal daily. In addition, certain weekly publications like Barrons, Forbes and Business Week are useful for keeping up to date. See me for a variety of business publications that you can obtain at a student subscription rate. Furthermore, there is a considerable amount of current information on the WWW . See the Finance 301 Links for internet links to additional information.
  
  Each of you will be required to make a 5 minute presentation to class and write a one to two page summary of the current event or issue. Each of the written presentations will be placed on the internet. All students will be responsible for the material in the current events for examination. Sign-ups will occur the first week of class. The written presentation must be completed 1 class period prior to your oral discussion in class.
  
  
• Simulation Game.You will be required to run a bank for the semester. You can select teams of 2-3 students. You will be required to make decisions over the course of the semester. You will be graded based on your justification for your management decisions and your final results. Each group will receive an electronic copy of the manual. The subsidized cost of the manual is $8.00 per student. I will collect in February.

• Bank Project: This is an optional assignment. The score received will be averaged with your worst exam. You may work in teams of no more than three students. The project entails measuring the financial performance and risk measurement of a specific commercial bank. I will give you historical accounting records for a specific commercial bank and you will be required to evaluate the financial performance and risk measurement of the institution. More details on the assignment will be discussed in class. It is a very good assignment to get a better understanding of bank reports.

• Stock Project:  You are required to follow a financial institution stock for the semester. You can choose a bank holding company, an insurance company, or a brokerage/management company.  You will be required to hand in reports on movements of the stock price relative to (1) news on the company, (2) other stocks, (3) general stock indices, and (4) specific intermediary indices. More details on the assignment will be discussed in class.
  
  
• Grading: Your course grade will be determined using the following weights:
  
  

  Examination # 1	15%
  Examination # 2	15%
  Examination # 3	15%
  Final Exam	15%
  Stock Assignment	20%
  Simulation Game	13%
  Current Events	3%
  Participation	4%
  TOTAL	100%

The +/- grading system will be used. The Campus Gradebook is used to store and retrieve grades.   You can access the Campus Gradebook at all university computer labs or download and retrieve helpful information about the software at www.uiuc.edu/ccso/gradebook/guidstud.html . The grades can also be accessed online at https://gradebook.cso.uiuc.edu/SWA.

• Student-faculty communication. Many methods are available to communicate with the instructor. First, I maintain an open door policy. You can stop by my office any time you have a question or concern. It is usually best to schedule a time since I may not be in my office. I will typically be unavailable mornings. You can also communicate with me by electronic or voice mail.
  
• Computer Competency: You will be required to use Excel spreadsheets at a very basic level. Assistance will be provided in class, but you may wish to take a short refresher course if you are uncomfortable with spreadsheets. You will be required to learn how to use electronic mail and access the internet.

• Professionalism and Academic Integrity. You are expected to conduct yourself in a professional manner. Effective speaking and writing abilities are essential in order to succeed in any career. Demonstrations of these abilities are expected in this class. Your assignments will always be graded on overall quality, proper grammar and punctuation. Take time to edit and spell-check your document. Furthermore, demonstration of promptness and ability to do independent work are strongly recommended.
  
  The University statement on your obligation to maintain academic integrity is:
  
  "If you engage in an act of academic dishonesty, you will become liable to severe disciplinary action. Such acts include cheating; falsification or invention of any information or citation in an academic endeavor; helping or attempting to help others commit academic infractions; plagiarism; offering bribes, favors or threats; academic interference; computer-related infractions; and failure to comply with research regulations."
  
  Rule 33 of the Code on Campus Affairs and Handbook of Policies and Regulations Applying to All Students gives complete details of rules governing integrity for all students. You are responsible for knowing and abiding by these rules.