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DOUGLAS COLLEGE
COMMERCE AND BUSINESS ADMINISTRATION Finance 3370 Financial Intermediation and Capital Markets Winter 2012
Instructor: Greg Huxtable, B. Math., M.B.A., CIM, CFP Section: 050 CRN = 13690 Office Location: NW 4333e Office Hours: Thur 6:00-6:30 pm

Course Location: NW 3343 Course Time: Thur 6:30-9:30 pm

E-mail: huxtableg@douglascollege.ca
COURSE MATERIALS REQUIRED Text: Saunders, Anthony; Cornett, Marcia Millon; and McGraw, Patricia. Financial Institutions Management A Risk Management Approach. Toronto: McGraw-Hill Ryerson Limited. 2010; 4th Canadian Edition. Calculator: Texas Instruments TI BA II+, TI BA-35 Solar, HP 10B or Sharp EL733a. The TI BA II+ is strongly recommended. Only the listed calculators will be allowed during exams. Programmable calculators will not be allowed. Handouts: Supplemental handouts at the discretion of the instructor. CALENDAR COURSE DESCRIPTION Financial Intermediation and Capital Markets is a course that examines the role played by financial intermediaries in capital markets. The course also aims to develop an understanding of the major financial markets by examining their structure and functions within the financial system. COURSE OBJECTIVES At the end of the course, the successful student should be able to: 1. Explain why we observe financial intermediaries. 2. Examine the economic role played by financial intermediaries.

3. Distinguish between primary and secondary markets and the role played by financial intermediaries in each market. 4. Evaluate the various financial markets and the institutional differences between them. 5. Identify different types of risk faced by financial intermediaries and the associated techniques to assess these risks.

RESPONSIBILITIES The Instructors responsibilities are to: Be organized and provide relevant lectures and application demonstrations Provide useful guidance for studying, assignment completion, and exam writing Give timely and impartial feedback Offer consultation outside the classroom The Students responsibilities are to: Use all learning resources, including: text and text website, lectures, group and class discussions, instructor, and fellow students. Please bring your text and calculator to all lectures Regular attendance and participation in class Act consistent with the Colleges Academic Honesty policy Demonstrate professional, business-like behaviour at all times during class. EVALUATION A final course grade will be determined based on the following components and their corresponding weighted percentages: Term Exam (s) 30 % Assignments 10 % Presentations 10 % Term Project 20 % Final Examination 30 % 100 % 1. Final grade will be converted to letter grade. 2. All assigned work must be turned in on due date with no exceptions. Late assignments will not be accepted. All work must be submitted with cover sheet, stapled to assignment, showing student name, id number, section and date. Absence from class is not a valid excuse for not handing in assignments. 3. Term exams will be held according to the schedule. Absences for medical reasons must be supported by a physicians note. 4. Students should be prepared to explain and discuss their assignments with their instructor. Failure to provide adequate explanation may result in a 0 for the assignment.

REGULATIONS FOR STUDENTS

Attendance and Participation:

Students are expected to prepare for, attend and actively participate in all class sessions and exercises, to sit the required tests and examinations, and to submit written assignments as and when required. NOTE: It is Douglas College policy that students who miss more than

30% of classes in a semester without a legitimate reason will receive a UN Grade for the class. Awareness of Announcements:
Students are responsible for all in-class announcements concerning course information and schedule changes whether or not they are in attendance.

Academic Dishonesty:
Plagiarism is the deliberate formal presentation or submission of the research, words, ideas, illustrations or diagrams of others as ones own without citation or credit. Cheating is the use of unauthorized aids, assistance or materials in the preparation of assignments or in examinations. During examinations it is considered cheating to communicate with others to obtain information, to copy from the work of others or to deliberately expose or convey information to others. The resubmission of ones own work for which credit has already been granted in another course, without instructor permission, is also cheating. Reprimands and appeals will be exercised according to official Douglas College policy http://www.douglas.bc.ca/about/policies/edu/academdis.html

Class Evaluation Requirements

Missed tests or examinations: Tests and examinations will be offered only during the scheduled date and time of sitting. Exceptions may be considered in cases of medical reasons supported by a physician's note or with prior agreement due to rare, unavoidable reasons. It is the responsibility of the student to inform the instructor at the earliest reasonable opportunity. Conflicts with work and travel requirements are NOT considered to be unavoidable. Late assignments, case submissions and term paper: Late assignments will not be accepted. Absence from class is no excuse for missing an assignment.

Professional, Business-like Behaviour

In General: Contribute to the creation of a friendly, productive, interesting, and thoughtful classroom environment that promotes learning. Timely Arrival to Class: You are expected to arrive to class on time, and avoid disturbing the class if you do enter the room late. Chronic lateness will result in reduced participation marks. Cell Phones: Please turn off your cell phone when in class. Ringing phones are a distraction. Food and Beverages: Please DO NOT bring food into the classroom to eat. Beverages such as coffee, water, soft drinks are fine. Disturbances: Loud talking off topic, clattering notebook keyboards and other distracting behaviour will be strongly discouraged by the instructor so as to maintain and encourage student focus on course material.

COURSE SCHEDULE FINANCE 3370 SECTION 050 WINTER 2012

SEMESTER WEEK WK 01 WK 02 WK 03 WK 04 WK 05 WK 06 WK 07 WK 08 WK 09 WK 10 WK 11 WK 12 WK 13 WK 14 WK 15 TOPICS Jan 5 Jan 12 Jan 19 Jan 26 Feb 2 Feb 9 Feb 16 Course Introduction The Role of Financial Institutions Deposit Taking Institutions Insurance Companies Securities Firms & Investment Banks Mutual Funds, Hedge Funds & Pension Funds Finance Companies Risks of Financial Intermediaries Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 CHAPTERS 1-7

Mid-Term Exam One STUDY BREAK WEEK

Feb 23 Interest Rate Risk I Interest Rate Risk II Mar 1 Mar 8 Market Risk Loans Credit Risk Individual Loans Credit Risk Portfolio

Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 17 CHAPTERS 8-17

Mar 15 Off-Balance Sheet Risk Liquidity Risk Mar 22 Mar 29 Apr 5 Apr 12

Mid-Term Exam Two

PROJECT PRESENTATIONS PROJECT PRESENTATIONS Review

The instructor reserves the right to modify the above schedule if and when necessary.