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COURSE SYLLABUS

COLLEGE : Ramon V. Del Rosario (RVR) - College of Business (COB)


DEPARTMENT : Accountancy
COURSE CODE : ACFINA3 (FINANCIAL MANAGEMENT 3 FOR BSA STUDENTS)
(Pre-requisite ACFINA2/ACFINA2)
CLASS DAYS AND CLASS TIME : _________________________
ROOM : A702
INSTRUCTOR : ACKERLY RELUCIO
CONTACT INFORMATION : 0927 5741715
CONSULTATION HOURS : _________________________

COURSE DESCRIPTION:

This course (ACOFIN3/ACFINA3, Financial Management 3 for BSA students) is an advanced course in financial
management that involves the more complex aspects of financial decisions involving financial markets and
institutions. This course covers management of financial institutions, its operations, products and services; the
Philippine financial system and government regulations; commercial banking, various securities markets; and risk
management in financial institutions. These concepts and principles introduced are globally applied but locally
customized to fit the Philippine scenario and the requirements of domestic financial, corporate and individual
entities.

LEARNING OUTCOME (LO):

On completion of the course, the student is expected to able to do the following:

EXPECTED LASALLIAN LEARNING OUTCOME


GRADUATE
ATTRIBUTES (ELGA)
Critical and creative LO1 Analyze cases and problems on financial markets and institutions by applying
thinker professional values and business ethics, and coming up with recommendations
and/or solutions which will benefit various stakeholders.
Effective communicator

Reflective lifelong learner

Service-driven citizen

FINAL COURSE OUTPUT:

As evidence of attaining the above learning outcomes, the student is required to do and submit the following during
the indicated dates of the term:

LEARNING OUTCOME REQUIRED OUTPUT DUE DATE


LO1 Analyze cases and problems on financial 1. At least one individual Weeks 1 to 12
markets and institutions by applying professional presentation (problem or case
values and business ethics, and coming up with solution)
recommendations and/or solutions which will 2. One group case presentation Week 13
benefit various stakeholders. (oral and written)
3. One financial statement analysis Week 9
group presentation (oral and
written)
4. One group report on financial Weeks 1 to 12
markets and institutions
5. One group critique on case Week 13
presentation (oral)
6. Solutions to all assigned Weeks 1 to 12
problems and cases
ACFINA3 Syllabus

RUBRIC FOR ASSESSMENT:

1. Individual presentation
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Delivery (40%) The student- The student- The student- The student-
presenter presenter presenter presenter
communicates communicates communicates communicates
and explains and explains and explains and explains
clearly the clearly the somewhat clearly vaguely the
solutions to the solutions to the the solutions to solutions to the
problems or problems or the problems or problems or
cases, and cases, and cases, and cases, and does
generates interest generates some generates little not generate
and establishes interest among interest among interest among
rapport among the audience. the audience. the audience.
the audience.
Presentation The student- The student- The student- The student-
content/solution presenter presenter presenter presenter
(30%) presents correct presents correct presents partly or presents incorrect
solutions to the solutions to the entirely correct solutions to the
problems or problems or solutions to the problems or
cases by showing cases by showing problems or cases but
all relevant certain supporting cases by showing corrects the
supporting calculations or supporting solutions to these
calculations or proofs, and calculations or problems or
proofs, and somewhat proofs. cases.
relating these relating these to
solutions to the the business
business world. world.
Question and The student- The student- The student- The student-
answer (30%) presenter presenter presenter presenter
provides correct provides correct provides partly or provides incorrect
or valid answers or valid answers, entirely correct or or non-sensible
to the questions, explains these valid/sensible answers to the
explains these somewhat clearly, answers, explains questions raised
clearly, and and presents these somewhat but somehow
presents some clearly. provides partly or
valid/sensible valid/sensible entirely correct or
arguments to arguments to valid/sensible
support/justify the support/justify the answers through
answers to the answers to the follow-up
questions raised. questions raised. questions.
TOTAL:

2. Group case presentation


CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Delivery (30%) The group The group The group The group
communicates communicates communicates communicates
clearly the clearly the somewhat clearly vaguely the
content of the content of the the content of the content of the
report and report and report and report and does
generates interest generates some generates little not generate
and establishes interest among interest among interest among
rapport among audience. audience. audience.
audience.
Oral and written The group The group The group The group
presentation provides valid, provides provides provides non-
content (30%) sensible and somewhat valid, somewhat valid, sensible case
logical case sensible and sensible and analysis, presents
analysis, presents logical case logical case alternatives and
feasible analysis, presents analysis, presents solutions to the
alternatives and feasible somewhat case problem
solutions to the alternatives and feasible which may not be
case problem, solutions to the alternatives and feasible or logical.
and provides case problem, solutions to the
valid, sensible and provides case problem but
and logical some valid, these are not
arguments or sensible and properly
supports. logical arguments supported by
or supports. valid, sensible
and logical
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ACFINA3 Syllabus

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING


96-100 91-95 86-90 80-85
arguments or
supports.
Teamwork The group is The group is The group is The group is
(20%) organized and organized and somewhat disorganized and
shows strong shows teamwork organized and shows lack of
teamwork and as evidenced in shows a hint of teamwork as
camaraderie as the presentation. teamwork as evidenced in the
evidenced in the evidenced in the presentation.
presentation. presentation.
Question and The group The group The group The group
answer (20%) provides provides provides provides non-
valid/sensible valid/sensible somewhat sensible answers
answers to the answers, explains valid/sensible to the questions
questions, these somewhat answers, explains raised but
explains these clearly, and these somewhat somehow
clearly, and presents some clearly. provides
presents valid valid arguments valid/sensible
arguments to to support/justify answers through
support/justify the the answers to follow-up
answers to the the questions questions.
questions raised. raised.
TOTAL:

3. Financial statement analysis group presentation


CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Delivery (30%) The group The group The group The group
communicates communicates communicates communicates
clearly the clearly the somewhat clearly vaguely the
content of the content of the the content of the content of the
report and report and report and report and does
generates interest generates some generates little not generate
and establishes interest among interest among interest among
rapport among audience. audience. audience.
audience.
Oral and written The group The group The group The group
presentation provides valid, provides provides provides partly
content (30%) sensible and somewhat valid, somewhat valid, sensible financial
logical financial sensible and sensible and statement
statement logical financial logical financial analysis.
analysis, and statement statement case
provides valid, analysis, and analysis but these
sensible and provides some are not properly
logical supports. valid, sensible supported by
and logical valid, sensible
supports. and logical
supports.
Teamwork The group is The group is The group is The group is
(20%) organized and organized and somewhat disorganized and
shows strong shows teamwork organized and shows lack of
teamwork and as evidenced in shows a hint of teamwork as
camaraderie as the presentation. teamwork as evidenced in the
evidenced in the evidenced in the presentation.
presentation. presentation.
Question and The group The group The group The group
answer (20%) provides provides provides provides non-
valid/sensible valid/sensible somewhat sensible answers
answers to the answers, explains valid/sensible to the questions
questions, these somewhat answers, explains raised but
explains these clearly, and these somewhat somehow
clearly, and presents some clearly. provides
presents valid valid arguments valid/sensible
arguments to to support/justify answers through
support/justify the the answers to follow-up
answers to the the questions questions.
questions raised. raised.
TOTAL:

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ACFINA3 Syllabus

4. Group report
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Delivery (30%) The group The group The group The group
communicates communicates communicates communicates
clearly the clearly the somewhat clearly vaguely the
content of the content of the the content of the content of the
report and report and report and report and does
generates interest generates some generates little not generate
and establishes interest among interest among interest among
rapport among audience. audience. audience.
audience.
Presentation The group The group The group The group
content (30%) includes all includes all includes some of includes many
relevant items required items the required items irrelevant items in
and materials in and materials in and materials in the report.
the report. the report. the report.
Teamwork The group is The group is The group is The group is
(20%) organized and organized and somewhat disorganized and
shows strong shows teamwork organized and shows lack of
teamwork and as evidenced in shows a hint of teamwork as
camaraderie as the presentation. teamwork as evidenced in the
evidenced in the evidenced in the presentation.
presentation. presentation.
Question and The group The group The group The group
answer (20%) provides provides provides provides non-
valid/sensible valid/sensible somewhat sensible answers
answers to the answers, explains valid/sensible to the questions
questions, these somewhat answers, explains raised but
explains these clearly, and these somewhat somehow
clearly, and presents some clearly. provides
presents valid valid arguments valid/sensible
arguments to to support/justify answers through
support/justify the the answers to follow-up
answers to the the questions questions.
questions raised. raised.
TOTAL:

5. Group critique
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Teamwork The group is The group is The group is The group is
(40%) organized and organized and somewhat disorganized and
shows strong shows teamwork organized and shows lack of
teamwork and as evidenced in shows a hint of teamwork as
camaraderie as raising questions, teamwork as evidenced in
evidenced in comments, issues evidenced in raising questions,
raising questions, or arguments. raising questions, comments, issues
comments, issues comments, issues or arguments.
or arguments. or arguments.
Quality of The group raises The group raises The group raises The group raises
questions raised valid/sensible valid/sensible somewhat partly
(60%) questions, questions, valid/sensible valid/sensible
comments, issues comments, issues questions, questions,
or arguments to or arguments to comments, issues comments, issues
the presenter, and the presenter, and or arguments to or arguments to
provides provides the presenter. the presenter.
valid/sensible somewhat
arguments to valid/sensible
support/justify arguments to
their position. support/justify
their position.
TOTAL:

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ACFINA3 Syllabus

6. Solutions to assigned problems and cases


CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
96-100 91-95 86-90 80-85
Solution content The student The student The student The student
(50%) provides correct provides provides partly provides mostly
solutions to substantially correct and partly incorrect solutions
problems and correct solutions incorrect solutions to problems and
cases. to problems and to problems and cases.
cases. cases.
Completeness The student The student The student The student did
of solutions prepared prepared prepared not prepare
(50%) solutions to all solutions to most solutions to some substantially
problems and problems and problems and solutions to
cases before cases before cases before problems and
reporting to class. reporting to class. reporting to class. cases before
reporting to class.
TOTAL:

OTHER REQUIREMENTS AND ASSESSMENTS:

Aside from the final output, the student will be assessed at other times during the term by the following:
1. Quizzes/Long Examinations
2. Business articles for classroom discussion
3. Recitation/Class participation
4. Final examination

GRADING SYSTEM:

Grade point description percentage:

4.0 Excellent 97-100


3.5 Superior 94-96
3.0 Very Good 91-93
2.5 Good 87-90
2.0 Satisfactory 83-86
1.5 Fair 77-82
1.0 Pass 70-75
0.0 Fail below 70

The student will be graded according to the following:

Basis Percentage
Departmental Long Exams 45%
Short Quizzes (Note 1) 15%
Group Case Presentations and Projects (Note 2) 15%
Final Examination 15%
Class Standing (Note 3) 10%
Total 100%

Note 1: Short quizzes (at least three) may be scheduled or given on a surprise basis anytime during the class.
Note 2: Group cases, projects, and reports will be assigned to each group. Each group will prepare written reports
and oral presentations for cases and projects.
Note 3: Recitation, homework, attendance, class participation, and individual oral reporting.

Course grade requirement: A grade of at least 2.0

LEARNING PLAN:

LEARNING TOPICS REFERENCE WEEK LEARNING


OUTCOME NO. ACTIVITIES
Part I INTRODUCTION AND OVERVIEW OF
FINANCIAL MARKETS AND INSTITUTIONS
Unit 1 Role and overview of financial markets and
institutions
LO1 1.1 Overview of financial markets Saunders (Ch1) 1 Lecture, Business
1.1.1 Function of financial markets BSP (Ch8) articles discussion
1.1.2 Structure of financial markets BSP website
1.2 Overview of financial institutions/financial
intermediaries
1.2.1 Function of financial institutions
1.2.2 Types of financial institutions

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ACFINA3 Syllabus

LEARNING TOPICS REFERENCE WEEK LEARNING


OUTCOME NO. ACTIVITIES
1.3 Philippine financial system
1.4 Globalization of financial markets

Unit 2 Determinants of interest rates


LO1 2.1 Loanable funds theory Saunders (Ch2) 1,2 Reports, business
2.2 Movement of interest rates over time articles discussion
2.3 Determinants of interest rates for individual
securities
2.4 Term structure of interest rates
2.5 Forecasting interest rates
2.6 Time value of money and interest rates

Unit 3 Interest rates and security valuation


LO1 3.1 Various interest rate measures Saunders (Ch3) 2 Reports, business
3.2 Bond valuation articles discussion
3.3 Equity valuation
3.4 Impact of maturity on security values
3.5 Impact of coupon rates on security values
3.6 Duration

Unit 4 Bangko Sentral ng Pilipinas, monetary


policy, and interest rates
LO1 4.1 Structure of the Bangko Sentral ng Pilipinas Saunders (Ch4) 3 Reports, business
4.2 Tools of monetary policy BSP(Ch1, Ch5 articles discussion
4.3 BSP reserves, money supply and interest & Ch7)
rates
4.4 International monetary policies and
strategies

FIRST DEPARMENTAL EXAMINATION 4

PART 2 FINANCIAL MARKETS


Unit 5 Money markets
LO1 5.1 Overview of money markets Saunders (Ch5) 4 Reports, business
5.2 Philippine money markets articles discussion
5.3 Money market securities
5.4 Money market participants
5.5 Yields on money markets
5.6 International aspects of money markets

Unit 6 Bond markets


LO1 6.1 Overview of mortgage markets Saunders (Ch6) 5 Reports, business
6.2 Philippine mortgage markets articles discussion
6.3 Bond market securities
6.4 Bond market participants
6.5 International aspects of bond markets

Unit 7 Mortgage markets


LO1 7.1 Overview of mortgage Saunders (Ch7) 5 Reports, business
7.2 Philippine mortgage markets articles discussion
7.3 Primary mortgage markets
7.4 Secondary mortgage markets
7.5 Participants in the mortgage markets
7.6 International trends in securitization

Unit 8 Stock markets


LO1 8.1 Overview of stock markets Saunders (Ch8) 6 Reports, business
8.2 Philippine stock markets articles discussion
8.3 Stock market securities
8.4 Primary stock markets
8.5 Secondary stock markets
8.6 Other issues in stock markets
8.6 International aspects of stock markets

Unit 9 Foreign exchange markets


LO1 9.1 Overview of foreign exchange markets Saunders (Ch9) 6 Reports, business
9.2 Philippine foreign exchange markets articles discussion
9.3 Foreign exchange rates and transactions
9.4 Interaction of interest rates, inflation and
exchange rates
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ACFINA3 Syllabus

LEARNING TOPICS REFERENCE WEEK LEARNING


OUTCOME NO. ACTIVITIES

Unit 10 Derivative securities markets


LO1 10.1 Overview of derivative securities markets Saunders 7,8 Reports, business
10.2 Philippine derivative securities markets (Ch10) articles discussion
10.3 Forwards and futures
10.4 Options
10.5 Swaps
10.6 Caps, floors and collars
10.7 International aspects of derivative securities
markets

SECOND DEPARTMENTAL EXAMINATION 8

PART III COMMERCIAL BANKING


Unit 11 Industry overview and commercial
banking operations
LO1 11.1 Philippine banking industry Saunders 9 Reports, business
11.2 Size, structure and composition of the (Ch11) BSP articles discussion
industry (Ch2 & Ch10)
11.3 Types of banks
11.4 Bank consolidation and nationwide banking
11.5 Bank balance sheets and recent trends
11.6 Industry performance
11.7 National and global banking issue

Unit 12 Financial statements and analysis


LO1 12.1 Financial statements of banks Saunders 9 Case reports,
12.2 Financial statement analysis (Ch12) business articles
12.3 Impact of market niche and bank size on discussion
financial statement analysis

Unit 13 Regulation of Philippine banks


LO1 13.1 Overview of Philippine banking Saunders 10 Reports, business
regulations (Ch13) articles discussion
13.2 Regulation of bank operations BSP (Ch2)
13.3 Regulation of capital BSP website
13.3 BASEL II and BASEL III
13.4 Philippine Deposit Insurance
Corporation

PART IV RISK MANAGEMENT IN FINANCIAL


INSTITUTIONS
LO1 Unit 14 Managing credit risk 10
14.1 Overview of credit risk management Saunders Reports, business
14.2 Credit quality problems (Ch20) articles discussion
14.3 Credit analysis
14.3 Return on a loan

LO1 Unit 15 Managing liquidity risk 11


15.1 Overview of liquidity risk management Saunders Reports, business
15.2 Causes of liquidity risk (Ch21) articles discussion
15.3 Liability-side liquidity risk
15.4 Asset-side liquidity risk
15.5 Liquidity exposure, deposit drains and bank
runs
15.6 Discount window, deposit insurance

LO1 Unit 16 Managing interest rate and insolvency risk 11


16.1 Overview of interest rate and insolvency Saunders Reports, business
risk management (Ch22) articles discussion
16.2 Interest rate risk measurement and
management
16.3 Insolvency risk management

Unit 17 Hedging with financial derivatives

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ACFINA3 Syllabus

LEARNING TOPICS REFERENCE WEEK LEARNING


OUTCOME NO. ACTIVITIES
LO1 17.1 Hedging activities Saunders 11,12 Reports, business
17.2 Forwards and futures (Ch23) articles discussion
17.3 Options
17.4 Swaps
17.5 Comparison of hedging methods

THIRD DEPARMENTAL EXAMINATION 12

Unit 18 Loan sales and securitization


LO1 18.1 Overview of loan sales and securitization Saunders 13 Reports, business
18.2 Loan sales (Ch24) articles discussion
18.3 Loan securitization
18.4 Securitization of other assets

Unit 19 Other risks and risk management


LO1 19.1 Foreign exchange risk Saunders 13 Reports, business
19.2 Country or sovereign risk (Ch19) articles discussion
19.3 Technology and operational risk
19.4 Other risks and risks interaction

FINAL EXAMINATION 14

OTHER LEARNING ACTIVITIES


Business Case Preparation 4
Financial Statement Analysis 4
Problems and Exercises 4
Total No. of Hours 12

REFERENCES:

Kidwell, D., Blackwell, D., Whidbee, D., Sias, Richard. Financial Institutions, Markets, and Money. (Latest Edition),
John Wiley & Sons.

Koch, T., MacDonald, S.S. Management of Banking. (Latest Edition), Ohio: South-western, Cengage Learning.

Madura, J. Financial Markets & Institutions. (Latest Edition), Ohio: South-western, Cengage Learning.

Mishkin, F., Eakins, S. Financial Markets & Institutions. (Latest Edition), Pearson Higher Education.

Perspectives from Bangko Sentral ng Pilipinas Money & Banking in the Philippines. Publication of Bangko Sentral
ng Pilipinas (2003).

Saunders, A., Cornett, M.M. (2015). Financial Markets and Institutions An Introduction to the Risk Management
Approach. (6th Edition), New York: McGraw-Hill/Irwin. (Textbook)

CLASS POLICIES:

1. Classroom Discussion The professor will discuss certain topics/principles and relate these to the actual
practice. There will always be student participation through recitation.
2. Problem-Based/Case Method Approach
a. Students will be assigned individual and/or group caselets/problems for individual or group
presentation. They will present the solutions in class by applying the various principles covered by the
course. The caselets/problems will be used to illustrate these principles. The professor/instructor and
other non-reporting/non-presenting students will ask questions about the caselets/problems and
solutions. The professor/instructor will summarize the principles covered by the caselets/problems.
Non-reporting students are also required to solve the caselets/problems before coming to class. The
solutions will also be checked by the professor/instructor.
b. Students will also be assigned cases and/or business articles for classroom discussion. They are
required to read these cases and/or business articles before coming to class. The students will be
required to summarize these cases and/or business articles, relate these to the principles covered by
the course, and identify the relevant issues and problems. The professor/instructor will act as the
facilitator.
3. Formal Case Analysis/Reports
a. The case (financial statement analysis and risk management) will be presented in front of the class.
b. Written case reports (financial statement analysis and risk management) will also be prepared following
the prescribed format.

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