1611526411061 general instructions for probanker group simulation exercises PDF

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General instructions for ProBanker Group Simulation Exercises The competition •

Within a competitive region (your group’s region/market is denoted by the letter A, B, C, or D), all banks’ decisions interact simultaneously in the competitive simulation.

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The lecturer cannot run the simulation until all banks have submitted their decisions.

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It is therefore imperative that all teams enter and save their decisions in a timely manner (see below for deadlines).

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After the instructor has simulated the next calendar quarter, the results become available in a collection of reports.

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Each team will receive a ranking of their current quarter performance as well as their cumulative performance

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Rankings are based on two metrics: risk and return

Main inputs for the game •

Set reserve requirements and purchase and sell government bonds.

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Set interest rates for retail, instalment and mortgage rate loans.

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Set interest rates for CDs, savings accounts and long-term deposits.

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Purchase and sell federal funds.

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Set provision for loan losses and corporate loan standards.

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Pay dividends, sell and repurchase shares.

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Within a competitive region, all banks' decisions interact simultaneously in a competitive simulation.

•

An instructor cannot run the simulation until all banks have submitted their decisions.

•

It is therefore imperative that all teams enter and save their decisions in a timely manner.

•

After the instructor has simulated the next calendar quarter, the results become available in a collection of reports.

•

Each team will receive a ranking of their current quarter performance as well as their cumulative performance

•

Rankings are based on two metrics: risk and return

Group effectiveness tips In this role play, each team member is a CEO of the bank with equal authority to change the decision inputs. The final input recorded in ProBanker by the end of each quarter is taken as the group’s collective decision. It is recommended that each group decides on who has the final authority to make inputs (AND DON’T FORGET TO SAVE YOUR DECISIONS!). Also discuss upfront how you are going to handle meetings and the allocation of your peer review scores (see below).

Reference resources •

See ProBanker Chapter 2 slides and text for more details

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The ProBanker text also contains standalone chapters for more detailed insights into each decision input. There is no requirement to memorise everything from the text as it were for an exam. Think of this as being similar to a manual in a real-world work situation. An effective executive is able to master the company’s decision systems while occasionally referring to user manuals.

Decision deadlines Quarter 1 – Wednesday 27 January 2021 11.59pm AEDST Quarter 2 – Friday 29 January 2021 11.59pm AEDST Quarter 2 – Monday 1 February 2021 11.59pm AEDST Quarter 3 – Wednesday 3 February 2021 11.59pm AEDST

Reminder on the assessment of Group Work Bank simulation performance (20%). The results of the simulation games (over 4 hypothetical quarters) will account for 15%. The other 5% will be from a peer review exercise. Group projects are always difficult to grade because of the 'free-rider' problem. As a way to overcome this incentive, the following evaluation mechanism will be used: At the end of the term, each student will “grade” the members of his/her group based upon their contribution to the group project as outlined in the peer evaluation form available on the

Moodle course site. The idea here is for everyone to understand, up-front, that the correct incentive is to do your equal share and you will be compensated accordingly. Regarding the 15% for the simulation games, 50% of the mark will be given for the group’s satisfactory completion of all assignments (i.e. meeting decision submission deadlines, evidence of deliberate decision making as seen in logical inputs). The other half of the 15% weighting will be based on the cumulative performance of each bank at the end of the exercises as ranked by ProBanker....