Learning Objective

    Building a global business is mainly about international banks. The success of international banks depend on the global network and how we manage it. Therefore, understanding the international Bank Management is a key to right decision making in a broad range of business and financial areas. The course is designed for college students majored in finance and economics or those who are interested in finance. by learning the course, students will:

•   to grasp the four conerstone financial theories based for the course
•   to clarify the mechanism of foreign exchange market
•   to understand the background and form of the globalization of commercial banks,
•   to know the international parity conditions such as interest rate parity, purchasing power parity and fisher open parity. 
•    to take advantage of hedging tools and foreign investment techniques by way of forward, futures, options and swap transactions. 
•   to  understand the credit risk management including quanlitative and quantative models
•   to make clear of anti-money laundering activities are mainly considered.

Key Points

    Commercial banks play an important role in the financial system of all countries in the world. As far as the main contents are concerned, this course mainly focuses on the following key pointsbased on risk-return trade-offs

• four cornerstone theories such as MM theory, CAPM, OPT and Principal-agency theory;
• globalization of commercial banking including organizational forms of the internatioanl banks
• foreign exchange market participation which includes the spot and forward transactions
• the three Arbitrages mainly include locational arbitrage, triangular arbitrage, covered interest arbitrage;
• futures and options in currency and interest rate markets
• credit risk management such as the quantitative and quanlitative methodology.
• special topics on the Money Laundering

Features

  With the rich teaching expriences of the professor, the course is featured by both theoretical and practical; both national and international; both techiniques and thoughts, both case studies oriented and exercises oriented.

Teaching purposes mainly include:

To be familiar with the structure and function of International Banks;

To understand how FX market and Eurocurrency market operate from the perspective of international banks;

To know how to manage and control the risks of international banks basically, such as interest rate risk, credit risk and market risk, etc.

The basic knowledge on microeconomics, macroeconomics, foundation of finance, international finance, commercial bank management are required for the course. 

• Jeff Madura, International Financial Management, 13e, Southwestern/Cengage Learning. 
• Dileep Matha,Hunggay Fung, International Bank Management, Blackwell Publishing