Bank Management

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Course Number: BUSADMIN 3710
Course Name: Bank Management (Online)
Course Description:    The purpose of the course is to analyze the issues involved in managing commercial banks and related financial institutions. The theory and practice of bank management will be studied with particular emphasis on the topics of asset management, and capital adequacy. Additionally, new dimensions in banking structure will be introduced.
Prerequisites:    BUSADMIN 3620
Level: Undergraduate
Credits: 3
Format: Online

Registration Instructions

NOTE: The information below is representative of the course and is subject to change.  The specific details of the course will be available in the Desire2Learn course instance for the course in which a student registers.

Additional Information

Learning Outcomes

In this course you will learn how banks and other related depository institutions operate. The objective of this course is to analyze the risks faced by banking institutions, and the strategies they use for controlling, managing, and profiting from taking these risks. Therefore after completing this course you will be able to:

  • Identify the risks involved in financial intermediation.
  • Explain the reasons for bank regulation and how regulation affects the risk posture of banks.
  • Calculate and interpret the financial ratios used to evaluate a bank's financial condition.
  • Identify appropriate strategies that can be used to hedge various risks.
  • Explain the impact of asset securitization on lending institutions.
  • Describe the techniques available for reducing risk in the investment portfolio.
  • Describe the methods and strategies used to manage risk in the loan portfolio.
  • Measure and evaluate bank liquidity risk.
  • Calculate the risk weighted capital requirement and evaluate a bank's capital adequacy.

Unit Descriptions

Unit 1
Lesson 1: An Overview of Banks and the Financial Services Sector
Lesson 2: The Impact of Government Policy and Regulation on Banking and the Financial Services Industry
Lesson 3: The Organization and Structure of Banking and the Financial Services Industry

Unit 2:
Lesson 4: The Financial Statements of Banks and Their Principal Competitors
Lesson 5: Measuring and Evaluating the Performance of Banks and Their Principal Competitors

Unit 3:
Lesson 6: Asset‐Liability Management: Determining and Measuring Interest Rates and Controlling Interest‐Sensitive and Duration Gaps
Lesson 7: Using Financial Futures, Options, Swaps and Other Hedging Tools in Asset-Liability Management
Lesson 8: Risk Management Using Asset‐Backed Securities, Loan Sales, Credit Standbys, and Credit Derivatives

Unit 4:
Lesson 9: The Investment Function in Banking and Financial Services Management
Lesson 10: Liquidity and Reserve Management: Strategies and Policies

Unit 5:
Lesson 11: Managing and Pricing Deposit Services and Non-deposit Liabilities
Lesson 12: The Management of Capital

Unit 6:
Lesson 13: Lending Policies and Procedures
Lesson 14: Lending to Business Firms and Pricing Business Loans
Lesson 15: Consumer Loans, Credit Cards, and Real Estate Lending

Grading Information

Your grade for this course will be based on the following criteria:

6 Unit Exams (50 points each): 300 points
8 Individual Assignments (point values vary): 125 points
9 Discussion Questions (point values vary): 100 points
2 Group Assignments (point values vary): 75 points
Total Points: 600 points

Letter grades will be assigned as follows:
A: 93% - 100% of total points
A-: 90% - 92% of total points
B+: 87% - 89% of total points
B: 83% - 86% of total points
B-: 80% - 82% of total points
C+: 77% - 79% of total points
C: 73% - 76% of total points
C-: 70% - 72% of total points
D+: 67% - 69% of total points
D: 60% - 66% of total points
F: 59% and less

The unit exams consist of 25 multiple-choice questions at two points each. The exams will be open for several days around weekends. Please let me know in advance if you have a scheduling conflict so that the appropriate accommodation can be made.

The content of the discussions varies. Some of the discussion topics involve forming and expressing an opinion about some issue. Others are simply an opportunity to share a result or conclusion on a particular assignment with the rest of the group.

Group assignment grades will include a peer evaluation of each member's contribution to the final product.

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