EF4334 - Regulation and Management of Financial Institutions

Offering Academic Unit
Department of Economics and Finance
Credit Units
Course Duration
One Semester
(CB3410 or FB3410 or EF3333) and (EF4320 or EF4321 or EF4420)
Course Offering Term*:
Not offering in current academic year

* The offering term is subject to change without prior notice
Course Aims

This course aims to highlight the important role that regulations come into play when managing the risks of financial institutions. In this regard, Basel Accords will be discussed in detail, with special attention to credit risk, market risk and capital adequacy under Basel II and Basel III. The course also looks at major regulations that are having an impact on the management of financial institutions in the USA and the world, such as the Patriot Act and Gramm-Leach-Bliley Act. An overview of relevant local ordinances, including the Banking Ordinance, Insurance Companies Ordinance, and the Securities and Futures Ordinance, will also be given.

It is equally important that students have a sound understanding of tools that financial institutions use to manage various risks and their applications in the context of evolving regulations. Topics include duration, Value-at-Risk, credit derivatives, interest rate futures, caps/floors, options and swaps.

The course also aims to develop students’ creative and innovative abilities through various assessment tasks. The engaging lectures will develop students’ discovery abilities through class discussions on course materials as well as current affairs in the financial market.

Practical assignments and projects require students to discover and innovate through the use of information database and platform, and independent research.

Assessment (Indicative only, please check the detailed course information)

Continuous Assessment: 40%
Examination: 60%
Examination Duration: 3 hours
Detailed Course Information


Useful Links

Department of Economics and Finance