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Overview

Co-taught with Professor Stephen Ryan

Fall 2022, Half Semester Starting Wednesday 6-9 PM, September 22, 2022. We will teach this course in person, but we will also turn on Zoom and record the class. You are encouraged to attend in person unless of you have special circumstances.

MBA ACCT-GB-3120 (1.5 credits) specialization: Accounting

Undergrad ACCT-UB-20 (2 credits) concentration: Accounting

This course analyzes financial statements of financial institutions from the perspective of investors, bankers, and consultants. It provides a framework to identify, understand, and analyze key performance metrics of banks.

Takeaways

Prerequisites

Core course in Financial Accounting

Materials

Exams and Grading

There are no in-class quizzes or midterms. There is take-home final exam.

System Requirements

Help and Office

Assignments

Topics

Topic 1: An introduction to modeling and analyzing a bank

Unique aspects of a bank's business model

Balance sheet

Income statement

Topic 2: Transactions and Basic Valuation Metrics for a Bank

Simple Transactions for a Bank

Balance sheet metrics

Income statement metrics

ROI and valuation metrics

Topic 3: Technical concepts

Loan and Bond Amortization

Credit risk

Debt securities

Interest rate risk

Inflation and exchange rates

Topic 4: Analyzing real financial statements (Wells Fargo 2020 report)

Topic 5: Analyzing real financial statements (Wells Fargo 2020 report)

Topic 6: Structured transactions and off-balance-sheet financing

Special purpose entities

Securitization

Derivatives