The Management of Financial Institutions (FIN) Program was launched in 1976 to answer the financial management needs of Philippine financial intermediaries and other Philippine businesses. While the major focus of the original program which seeks to develop graduates with excellent decision making, problem solving and analytical abilities remain basically unchanged, the present program aims to support the MFI vision in response to the formidable challenges of the financial services industry.
The MFI vision is to position DLSU as a leading institution offering formal training for future financial service career executives responsive to the changing needs of the financial service businesses in the Philippines and the Asia-Pacific Region. The present program aims to train and develop future managers and professionals on the various skills, applied principles and strategies necessary for effective decision making. Specifically, the program intends to strengthen the graduates’ foundation on the quantitative and empirical research tools; sharpen their understanding of changing financial regulations, markets, products and risks; deepen their appreciation of the functional management areas in the more specialized financial services disciplines (such as investment banking, treasury management and risk management), and allow them to integrate disciplines from strategic perspectives.
|Total Academic Units||183 units|
|Total Non-Academic Units||12 units|
|Total number of terms||10 terms|
Computer Package 1 (COMP1FI)
This is an introductory course for MFI students that introduces basic computer concepts. This course is designed to provide students with a broad understanding of Internet/ Information Technology (IT), and provides an initial description of Microsoft Windows environment and application of MS Office such as Word, PowerPoint and Excel.
Computer Package 2 (COMP2FI)
This course discusses financial modeling through the use of Microsoft Excel as its primary tool and basic concept of database management system using Microsoft Access. It covers creating spreadsheets, writing formulas, creating charts and graphs, sorting and analyzing data and applying advanced MS Excel techniques in Finance. It also focuses on relational database.
Mathematical Analysis 1 for Finance Majors (FINMAT1)
This is the first course on mathematical methods for finance. The course is divided into three parts- basic models in finance, limits and continuity, and differential calculus. Finance is a quantitative discipline, and in recent decades the discourse of the profession has become substantially more precise, in the sense of using formal mathematical models. This has many benefits: assumptions and lines of reasoning become completely explicit; exactly understood results can be used with confidence as a basis for more sophisticated reasoning; novel insights can be derived from the application of sophisticated mathematical methods. The course assumes knowledge of college algebra and business mathematics- functions, graphs and the time value of money. The course starts with basic models in finance- these models include a simple market model involving forwards, static replication of options and detection of arbitrage opportunities. Further, models for risk-free assets will be discussed in the context of time value of money. Next, we discuss the foundations of calculus- limits and continuity. The course then discusses the derivative, differentiation rules and their applications in single-variable optimization. The course then extends these ideas to the multivariable case and their applications in comparative statics.
Mathematical Analysis 2 for Finance Majors (FINMAT2)
This is the second course on mathematical methods for finance. The course is divided into three parts- integral calculus, matrix algebra and static optimization. The course assumes knowledge of differential calculus- computing limits, calculating derivatives (both ordinary and partial) and finding maxima and minima. The course introduces the student to integral calculus-its theoretical apparatus and its applications in economics and finance. The course then introduces the student to the key theorem in calculus-the Fundamental Theorem of Calculus. Integral calculus can also be extended to the multivariable case and these are applied in mathematical statistics-especially in the computing probabilities from density functions, evaluating moments of a random variable and applying the normal distribution. Next, the course introduces the student to matrix algebra. The key concepts in matrix algebra are highly intertwined-role of matrices in solving systems of linear equations, the use of linear independence and rank in establishing the existence of solutions to linear equations and the role of quadratic forms in optimization theory. Matrix algebra is very useful in finance-especially in modeling securities, portfolio management and detecting arbitrage opportunities. Finally, the student is introduced to static optimization methods-multivariable optimization, the Lagrange multiplier technique and the Kuhn-Tucker Theorem. These optimization methods are very useful in econometrics, portfolio optimization and arbitrage detection.
Statistics for Finance (FINSTAT)
This course is an introductory subject in statistical data analysis and applied statistics. The emphasis is on the basic tools and techniques used by practicing economists and people in finance. This course will prepare students for the rigors of empirical courses like financial econometrics including the necessary tools for finance research.
Financial Management 1 (FINMAN1)
This is a basic course in Financial Management. It provides students with the basic principles, techniques and analytical tools needed in conducting financial analysis, in evaluating and forecasting a business firm's financial performance and in managing working capital, with focus on cash, marketable securities, accounts receivable, inventories and short tem financing sources.
Financial Management 2 (FINMAN2)
The course is a continuation of Financial Management 1. It covers the more complex aspects of financial decisions such as medium to long term investments, capital budgeting under uncertainty, debt versus equity financing, cost of capital, dividend decisions, valuation, and stock options/warrants These concepts are applied to financial and non-financial enterprises.
Econometrics for Finance 1 (FINMET1)
This is a 3-unit introduction to econometrics. This course introduces the linear regression model and discusses estimation and testing under ideal conditions. This course also introduces alternative approaches to ordinary least squares, namely, maximum likelihood estimation and method of moments estimation. This course also looks at what happens when the conditions are less than ideal due to departures from the assumptions necessary for ordinary least squares (OLS) to be the best linear unbiased estimator, and provides alternative regression techniques that address problems arising from the violations of the basic assumptions.
Econometrics for Finance 2 (FINMET2)
This is a 3-unit course in advanced econometrics. This course reviews the linear regression model and discusses estimation and testing under ideal conditions. This course also introduces alternative approaches to ordinary least squares, namely, maximum likelihood estimation and method of moments estimation. This course is primarily about what happens when the conditions are less than ideal due to departures from the assumptions necessary for ordinary least squares to be the best linear unbiased estimator, and provides alternative regression techniques that address problems arising from the violations of the basic assumptions. Asymptotic theory will also be introduced in this context. Special models such as binary response models and time series analysis will be discussed.
Intermediate Microeconomics (FIMICRO)
Microeconomics is a course designed to bring together theories in firm level economics with applications in business decision making. It involves an appreciation of the concepts students learn from other management and finance related courses as applied to pricing strategies, production, cost and industry analysis. Students get exposed to analyzing economic problems within a more scientific approach from a business or finance perspective. The approach is inductive, the sessions beginning with understanding consumer behavior forming the foundations of demand theory. Succeeding sessions tackle the problems of the firm as it allocates resources as discussed within the context of production and cost. The interaction between consumers and producers are further analyzed under four fundamental forms of markets - perfect competition, monopoly, oligopoly and monopolistic competition. The area of behavioral finance is given special emphasis in the discussions of consumer behavior industry of banking and finance in the discussions of market structures.
Intermediate Macroeconomics (FIMACRO)
This course deals with the analysis of overall behavior of the economy. It will strive to explain trends of fluctuations in important macroeconomic aggregates like output, employment and prices. It will also cover important theoretical underpinnings behind different paradigms in macroeconomics as in Keynesian and classical models. Using basic aggregate demand and aggregate supply framework, the course will explain the determination of equilibrium output, prices, interest rates under a closed economy and open economy model. It will use microeconomic foundations to explain behavior of macro variables like consumption, investment, government spending etc. Towards the end, special topics in financial markets and institutions will be discussed in the context of modern macroeconomics. Furthermore, this course will take a comprehensive look at the interplay between financial systems and macroeconomic performance. Particularly, it will look into the role financial systems play in generating macroeconomic volatility.
Financial Markets and Non-Bank Financial Institutions (FINTERM)
FINTERM is a study of financial markets and non-bank financial institutions. The basic principles to be studied are the following: an overview of the financial system, the theory of financial structure, interest rates, and portfolio choice. Efficient capital markets are also discussed. Specifically, the following financial markets are given particular attention: the debt (bond) market, the stock market, and the foreign exchange market. The course also focuses on the operations of major non-bank financial institutions such as: private equity firms, investment banks, securities brokers and dealers, and mutual funds.
Bank Management (FINBANK)
Bank Management (FINBANK) is a major course that firmly equips the students with the necessary concepts, principles, and techniques used in sourcing and allocating bank funds that would maximize shareholders' wealth whilst maintaining adequate liquidity consistent with acceptable levels of risks. As banking continues to be an industry-in-change, FINBANK logically begins in familiarizing the students with the financial environment in which bank managers must operate in - the structure, functions and operations of financial intermediaries. It is the end view of the course to challenge students, as prospect bankers, to be able to confront head-on the strategic issues of risk, return, regulation, competition, technology, and globalization that face and shape all the past, present and future of the banking industry in its entirety.
International Monetary Theory (FININTE)
International Finance looks into the nature and effects of financial transactions in an open market economy, from both a macroeconomic and firm level perspectives, with emphasis on the financial functions of multinational firms/entities. The course dwells on the analytical tools and theories linking interest rates, inflation, exchange rates and policy formation at the country level and how these variables perform in a global setting, cognizant of the evolving nature of current developments in the field. From a firm specific perspective, the course discusses the analytical methods utilized for decision making of an international context, covering the traditional areas of multinational corporate finance, specifically working capital management, capital budgeting and financial structure but dealt within an environment involving multicurrencies, the foreign exchange market, differing money and capital markets, tax and political systems.
Investment Analysis & Portfolio Management (FINVEST)
FINVEST introduces future investment managers with the basic concepts, techniques, and processes to investment analysis and portfolio management. The concentration of the course is the evaluation of the traditional investments in the Philippines, in particular, and the world, in general.
Financial Treasury Management (FINTREA)
FINTREA is an intensive 42-hour course covering the basic up to intermediate-level financial concepts, principles, and products needed for effective Treasury Management. It deals with the key principles and analytical techniques required to make sound and logical Treasury Management decisions. The course provides students with an in-depth study of the various Treasury products that are actively traded by financial institutions today, emphasizing on their practical applications in the financial markets. The financial concepts, instruments, and conventions introduced in this course are recognized, accepted, and applied globally but shall be studied mainly from the perspective of a Philippine universal/commercial bank, as customized to address the requirements of domestic financial institutions, corporate entities, and individuals. The course acquaints the student with the various functions of a universal/commercial bank's Treasury Department in profit generation, risk expos ure management, and financial intermediation. The course trains the student how to scout the financial markets for potential investment outlets and how to take advantage of news, movements in economic indicators, and fluctuations in market prices of securities to generate trading gains. Dealing room ethics, market trading conventions, and global best practices in securities dealership and in the overall management and operations of a universal/commercial bank's Treasury Department shall also be discussed. The student shall be exposed to current issues in the Philippine and international financial markets, particularly as they impact on the Treasury Management function. Topics in this course include, but are not limited to, interbank trading, valuation/pricing of Treasury products, government securities dealership, accounting of fixed income transactions, hedging of interest rate exposures, balance sheet management, liquidity and reserves management, foreign exchange trading, currency risk management, risks and controls in Treasury operations, and market reading.
The course focuses primarily on two major financial markets, namely the interest rate market and the foreign exchange market, and shall zero-in on the management, pricing, and strategic use of government securities and foreign exchange products by universal/commercial banks to earn profit. A considerable amount of time shall also be spent learning how to quantify and manage the various risks inherent in foreign exchange and government securities trading.
The subject is highly quantitative, conceptual, practitioner-based, and intuitive in nature. A good grasp of financial market dynamics is required in this class because the subject is heavily grounded on macroeconomic and financial theory. The course is also heavy on computations since the pricing of Treasury products entails a considerable amount of time and effort doing calculation. And because Treasury Management, as a course in itself, is a marrying of financial concepts and the application of Treasury instruments, a student is expected to use both logic and intuition when analyzing the link between economic theory and the use of the financial product either for profit generation or risk management purposes. To be able to appreciate the course in its entirety, a student must have at least basic knowledge of financial management, accounting, economics, some calculus, some statistics, and strategic bank management.
Special Topics in Finance Seminar (FINSPEC)
FINSPEC is a non-credit required course where students are exposed to special and current trends of finance and financial management. Speakers in various fields of finance and financial management will be invited to expound on topics related to their expertise. The course also provides a venue where students will be evaluated on their oral communications fluency including their understanding of the concepts or theory evaluated through an oral comprehensive exam.
Financial Research (FINARES)
This course focuses on the writing and oral defense of a quality research proposal in finance and its related fields. The proposal will become the student's thesis, a necessary requirement for the degree Bachelor of Science in Commerce major in Management of Financial Institutions.
Strategic Planning for Financial Institutions (FINSTRA)
Financial Strategy (FINSTRA) integrates the concepts, principles and techniques learned from the core Finance subjects to form successful strategies in today's complex global financial environment. In doing so, one becomes an active participant in shaping the firm's value creating objective in the face of volatile markets and evolving market demands and trends. Using the universal/commercial banking sector as illustration, FINSTRA unifies the divergent themes of financial theory, corporate finance, quantitative analysis, investments, financial risk management, and corporate governance and enables one to have an integrated view of strategic finance issues. This, in turn allows one to have the confidence to develop a similar approach in crafting value-creating strategies for other firms in other industries.
For students who would like to make professional commitment in the world of Finance, FINSTRA provides a menu of careers and opportunities in the financial services industry by exploring part of the educational requirements of prestigious finance certification programs such as the CFA Institute's Chartered Financial Analyst (CFA®), Institute of Financial Consultant's (Canada) Certified Financial Consultant (CFC®), and the AGSB-BAP's Treasury Certification Program (TCP®), among others.
While it is a rigorous and comprehensive course, FINSTRA seeks to challenge graduating students to take on the task of advancing a career in finance, whether as prospective corporate bankers, financial advisers, investment analysts or portfolio managers; to be able to confront head-on the strategic issues of risk, return, regulation, competition, technology, and globalization that integrates the past, present and future of the financial services industry.
Financial Research 2 (THSMFI2)
This is an integrating course for business students majoring in Management of Financial Institutions. The student is expected to complete and defend his/her undergraduate thesis which may be a project feasibility study, industry study, basic business research, case study, or corporate/business planning study.
Practicum On-the-Job Training * 200 hours (PRCMFI1)
The Financial Management on the job training is meant to enable students to acquire the necessary knowledge, skills, attitudes, and values of world-class financial management, and to provide them with a competitive advantage over finance students of other schools. This will also benefit the participating companies in terms of getting high-caliber trainees (who could become their future employees), and of minimizing the huge cost of training future employees from DLSU-Manila if they decide to absorb the trainees as part of their workforce.
Trust Operations in the Philippines (FINTRUS)
The course is a comprehensive study of trust and fund management operations, a specialized off-balance sheet activity of a fiduciary nature, whereby a person, natural or juridical, delivers a property or properties to a trustee, who administers and manages the property/ies for the benefit of designated person/s. The services to be studied in this course will range from the very simple safekeeping to the more complicated management of estates, retirement funds, pre-need trusts, foundations and pooled investment funds. It will also look at specialized functions that trustees perform in connection with the issuance of debt and capital market instruments, and will look at the techniques of portfolio management typical in the administration of investible funds of trust accounts.
Management of Risk in Financial Management (FINRISK)
FINRISK is focused on the management and mitigation of risk faced by financial institutions. These risks, which can be classified into market risk, liquidity risk, credit risk, and operational risk, have to be addressed as bank and insurance companies prepare themselves to expand their operations globally and domestically.
This elective course is also focused on the understanding and the importance of developing an Enterprise-wide Risk Management Framework in the effective management of risks. This is done through an in-depth understanding and analysis of the different risk models.
The course provides students understanding of the regulatory environment and framework through the exhaustive discussion of the existing Basle Accord as well as its proposed amendments.
Investment Banking (FINESBA)
FINESBA aims to provide future investment bankers with an in-depth understanding of the investment banking business and the various investment banking products and services such as but not limited to debt and equity underwriting, mergers and acquisition, securitization, managed funds, loan syndication, project finance, financial packaging, and financial advisory. FINESBA is an integrating elective course, requiring sufficient recall of key subject areas such as Accounting, FINAMA and FINVEST. The course requirements are designed around the integration and application of these key bodies of learning.
Mergers & Acquisitions (FINMERG)
FINMERG is designed to be an applications oriented course. This course will draw on the experiences and key learnings from real M&A cases. This course does not intend to introduce new techniques and principles in the areas of Finance and Investments, but rather, integrate and apply them in the context of the M&A landscape.