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Immerse yourself in the Stanford Bank Game and gain practical skills in simulated bank operation with a focus on banking fundamentals and management strategies. Learn about spread, profitability, solvency, and more to enhance your decision-making abilities. Review the syllabus, required resources, grading criteria, and tentative schedule to prepare for the next session. This course emphasizes mechanics, maximizing fee income, people issues, time management, and delegation. Develop a "stick-with-it-ness" attitude and strategies for uncertainty in the banking industry. Enhance your understanding of investment return, cost of funds, and banking goals. Prepare for the assignment by accessing the class webpage and Y1Q4Output.pdf. Enhance your banking management skills and excel in simulated bank scenarios.
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Course Introduction • Syllabus • Course Description • Required Resources • Grading • Tentative Schedule
Simulation • Stanford Bank Game • Simulated Bank Operation • Management Team Experience
Simulation • Concentration on: • Mechanics: Capital, Cost of Funds, Maximizing Fee Income • Management: People Issues, Time Management and Delegation, “Stick-with-it-ness” and what to do when “you really don’t know” and that’s ok!
Banking Fundamentals • SPREAD: Investment Return – Cost of Funds Investment Return mainly from Loans and Securities Cost of Funds mainly from Capital and Borrowed Funds
Banking Goals • Profitability (Not Size!) • Spread 4% + • ROA 1-1.5% • ROE 12% + • Solvency • Capital to Assets 7-8% (No More, No Less)
Assignment for Next Time • Go to Class Webpage (Syllabus) • Go to Jan 10th entry • Click on, print and bring to class Y1Q4Output.pdf