FIN4001 - Financial Institution Management
|先修單元:||FIN3001 Financial Institutions and Markets or FIN2001 Financial Management or with the Instructor’s permission and upon endorsement of the relevant Head and Programme Director|
This module provides a broad financial appraisal of financial institutions (FI), and the associated decision making processes of the financial services sector in Hong Kong. A range of topics is addressed including: the Hong Kong financial environment; understanding financial statements; evaluating returns, risks and performance; the yield curve and gap management; the management of liabilities, liquidity, the securities portfolio and capital; and hedging and pricing with interest rate derivatives and so on.
Upon completion of this module, students should be able to:
- discuss strategic management in the financial services industry and outline the structure of the Hong Kong financial sector and discuss the regulatory environment in which FIs operate;
- analyse an FI's financial statement, apply the key risk and return measures to the examination and evaluation of financial statements and have an understanding of the trade-off between risk and return;
- describe the term structure of interest rates and interest rate sensitivity of assets and liabilities, and calculate the duration gap;
- demonstrate an understanding of the management of liabilities and explain liquidity risk and demonstrate an understanding of liquidity management;
- demonstrate an understanding of how FIs manage capital and discuss the types of securities that FIs invest in and explain how the security portfolio is managed;
- discuss means by which FIs manage portfolio risk and credit risk; and
- illustrate the difference between forwards, futures, options (in particular interest rate options) and interest rate swaps, and explain how and why they are used by FIs and banks.