This course is a hybrid course offered via Tencent Meeting to students offline and online in the Global Hybrid Classroomof Global MOOC Alliance, Global Virtual Classroom Shanghai Jiao Tong University, and Virtual Exchange Program of the APRU (Alliance of Pacific Ring University)
A well-functioning financial system is fundamental to the modern economy. In China, the banking industry provides special and vital roles.
From the first paper money in the world, Jiao Zi (交子), to the digital RMB. from the first bank draft in the world to the mobile payment that reaches every corner in China; from the first institution that provides loan services, to the Imperial Bank of China, the first modern bank in China established by Mr. Sheng Xuan Huai, the founder of Shanghai Jiao Tong University, then to the largest banks in the world after years of reform, the Chinese wisdom helped the banking industry go through many ups and downs.
In this course, through case studies, building on basics in finance and principles in economics, I will introduce the history and changing dynamics of the banking industry in China, building a bridge between the West and the East.
At the same time, I will introduce and apply analytical tools and methods to manage risks faced by Chinese banks in the changing global economy, building a bridge between theory and practice.
Furthermore, I will analyze the driving force behind the development of the financial system in China, and the games played between regulators and financial institutions.
Let’s start the journey to discover the fascinating banking industry in China in this world full of uncertainty!
This course builds on basic financial theory and the principles courses in economics. It addresses topics that are important for managing financial institutions in a rapidly changing international environment. Upon successful completion of the course, students should be able to understand the role of financial institutions in the economy; explain why banks are unique, and therefore merit special attention; to understand the analytical foundation underlying financial institutions management, and be able to use them to analyze important financial issues, including financial crisis; be familiar with risk management techniques to deal with the various risks banks and other financial institutions face.
Prerequisites:
Introduction to Finance
Money and Banking
Students are expected to have some background in basic economic theory (macroeconomics and microeconomics), and a disposition to keep themselves informed of current developments in the area of banking and finance.
Textbooks and References:
Textbook:
Saunders and Cornett, Financial Institutions Management: A Risk Management Approach, 8th edition/International Edition, McGraw Hill, 2014 (FIM)
Reference book：
John C. Hull, Risk Management and Financial Institutions, Second Edition, Pearson, 2010
Peter S. Rose and Sylvia C. Hudgins, Bank Management and Financial Services, 9th Edition, International Edition, McGraw-Hill, 2013 (BMFS)
Other journal articles and news articles (see the discussion board)
Q : What are the textbooks and references for this course?
A : The information in the lecture notes comes from the following sources:
1. Textbook: Saunders and Cornett, Financial Institutions Management: A Risk Management Approach, 8th edition/International Edition, McGraw Hill, 2014 (FIM)
2. Website of Federal Reserve and People's Bank of China, and other central banks
3. Journal articles in the references for each topic
4. News articles and other documents/videos from the internet (open-source)
Q : What are the differences between the Lecture Videos and zoom-live class video
A : Lecture videos are short and concise (10 hours in total), contains the discussion about the core concepts and methods in this course. The zoom-live class videos contain much richer content, including discussion of the latest news and development in the banking industry and related questions, such as "mask run" vs "bank run", the monetary policy during Covid-19 pandemic and etc.