COURSE INFORMATION
Course Title: BANK MANAGEMENT
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 432 B 2 3 0 0 3 7.5
Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Arben Zibri
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Compulsory
Classroom and Meeting Time: Every Tuesday, 18:00-20:45
Course Description: Corporate finance and microeconomics are applied to matters of importance to commercial bankers. Among the subjects treated are bank asset portfolio construction, lending policies, liabilities management, bank capital structure, short run cash management, financial market rates and flows, and quantitative models for bank management. Commercial bank management is analyzed from an internal viewpoint in terms of what bank managers should look for in asset management and why; what market conditions they should be aware of; and what techniques they can use to meet changing economic and financial conditions.
Course Objectives: Get to know closer the banking system, identify and measure main risks faced in banking and other financial institutions as well as learn the tools used in the industry to minimize or control those risks. More broadly learn how to manage banks efficiently.
COURSE OUTLINE
Week Topics
1 Banking and the Financial Service Industry
2 Analyzing Bank Performance
3 Analyzing Bank Performance
4 Managing Noninterest Income and Noninterest Expense
5 Managing Interest Rate Risk: Gap and Earnings Sensitivity
6 Managing Interest Rate Risk: Duration Gap and Economic Value of Equity
7 Managing Interest Rate Risk: Duration Gap and Economic Value of Equity
8 Mid Term Exam
9 Funding the Bank
10 Managing Liquidity
11 The Effective Use of Capital
12 Overview of Credit Policy and Loan Characteristics
13 Evaluating Commercial Loan Requests and Managing Credit Risk
14 Project Presentations
Prerequisite(s): Microeconomics, Corporate Finance, Financial Accounting
Textbook: Koch and MacDonald (2010), Bank Management, 7th edition, Cengage Learning.
Other References: Peter Rose (2002), Commercial Bank Management, 5th edition, McGraw-Hill Highered Education. Joseph F. Sinkey, Jr. (1998), Commercial Bank Financial Management, 5th edition, Prentice-Hall, Inc.
Laboratory Work:
Computer Usage:
Others: No
COURSE LEARNING OUTCOMES
1 Critically understand the functions, and the organizational structure of the commercial banks
2 Understand the decision-making process in banks and the financial management tools and techniques used in bank management.
3 Develop critical and analytical insights on basic bank risk management and on risk-return tradeoffs
4 Comprehend the pricing and procedures of bank commercial lending.
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Master of Science in Economics Program
1 Students apply advanced knowledge in economics 5
2 Students explain the interaction between related disciplines and economics 2
3 Students apply scientific methods to address economic problems 3
4 Students define existing theory in a specialized branch of economics 3
5 Students critically evaluate knowledge in economics and carry out advanced research independently 2
6 Students develop economic models and formulate policy options 2
7 Students make an original contribution to the discipline 2
8 Students effectively communicate in a variety of professional and academic contexts 4
9 Students will develop new strategic approaches for unexpected, complicated situations in economics and take responsibility in solving them 3
10 Students uphold and defend ethical values data collection, interpretation and dissemination 2
11 Students use advanced empirical analyses to address social problems
12 Students interact with professional networks in their field of specialization
COURSE EVALUATION METHOD
Method Quantity Percentage
Homework
10
1
Midterm Exam(s)
1
25
Presentation
1
5
Project
1
15
Final Exam
1
35
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 3 48
Mid-terms 1 16 16
Assignments 0
Final examination 1 23 23
Other 1 15 15
Total Work Load:
150
Total Work Load/25(h):
6
ECTS Credit of the Course:
7.5