4908280: Banking Game

Description

• Develop – as a member of the management board of directors - the business of a bank over several decision rounds (5-6) of a simulation game. Making a first decision on the type of bank (and strategy concepts) you want to manage. Analysis of the economic scenario offered at the beginning of a decision round.Making decisions on interest rates and prices for bank products (loans and other asset positions, deposits and other liability positions) and the issue of financial products in order to optimize the long-term profitability.Implementation of a bank strategy in terms of product, personnel, infrastructure and marketing.Dealing with bank risks, balance sheet structure, bank-specific controlling instruments and information media.Dealing with qualitative asset transformation and resulting risks, liquidity and capital requirements. Reaction to changes in framework conditions.

Lecture Goals

• Students know the characteristics of different types of banks and know how to apply various strategy concepts. Students learn to act and make management decisions in a responsible way as a member of a team. Students understand the connections between and effectiveness of the sub-areas of comprehensive bank management on the bank balance sheet and profit and loss statement.Students learn the implications of specific bank decision making.Students know how to evaluate incomplete information and the resulting bank risk assessment.Students learn how to manage assets and liabilities and the resulting risks. Students learn how to assess the results of a banking round and how to change their decisions in order to improve the next result.

Lectures Method

Business Game

Literature

• Required reading: Business Game Manual.Recommended reading:Greenbaum, S.I., Thakor, A.V., & Boot, A. (2015). Contemporary Financial Intermediation (3rd edition). New York: Elsevier. Hull, J.C. (2016). Risk Management and Financial Institutions (4th edition). Boston: Wiley. Koch, T., & MacDonald, S.S. (2015). Bank Management (8th edition). Boston: Cengage Learning.