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: Juliana Imeraj
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:
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: The objectives of this course are to: provide students with an introduction to the financial management of the commercial banking enterprise, equip students with an understanding of the basic issues involved in value creation and risk management for banking firms, and equip students with the technical and analytical tools, and strategic abilities necessary to understand the evolution and workings of the commercial banking industry.
COURSE OUTLINE
Week Topics
1 Review of Syllabus: Introduction to the Course
2 Banking and the Financial Services Industry
3 Bank Financial Statements
4 Analyzing Bank Performance
5 Managing Interest Rate Risk: GAP and Earnings Sensitivity, Quiz
6 Managing Interest Rate Risk: Economic Value of Equity
7 Review and practical session
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 Presentation of Projects + Discussions
14 Presentation of Projects + Discussions, Review and practical session
Prerequisite(s):
Textbook: Timothy W. Koch, S. Scott MacDonald, “Bank Management”, 8th edition, 2014
Other References: Peter S. Rose, Sylvia Hudgins, “Bank Management and Financial Services”, 9th edition, 2012
Laboratory Work:
Computer Usage:
Others: No
COURSE LEARNING OUTCOMES
1 Identifying the distinguishing features of banks as financial intermediaries, their unique characteristics as businesses in our economy;
2 Identifying and understanding the sources of risk in banking and how these risks interact to understand the overall risk level that banks face in today’s economic, financial, and regulatory environment;
3 Understanding how banks manage their risk exposure and the relationship of risk management to the creation of value for the bank;
4 Understanding how the economic and regulatory environments of the banks impact banks’ decision-making;
5 Developing technical, analytical and decision making skills in order to help understand managerial responsibility in the financial management of the banking firm; and finally,
6 Providing students with a foundation for more advanced academic and professional training and development in bank management.
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 3
2 Students explain the interaction between related disciplines and economics 4
3 Students apply scientific methods to address economic problems 4
4 Students define existing theory in a specialized branch of economics 2
5 Students critically evaluate knowledge in economics and carry out advanced research independently 3
6 Students develop economic models and formulate policy options 4
7 Students make an original contribution to the discipline 3
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 4
10 Students uphold and defend ethical values data collection, interpretation and dissemination 4
11 Students use advanced empirical analyses to address social problems 2
12 Students interact with professional networks in their field of specialization 2
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
30
Project
1
20
Quiz
1
5
Final Exam
1
40
Attendance
5
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 20 20
Assignments 0
Final examination 1 30 30
Other 1 41.5 41.5
Total Work Load:
187.5
Total Work Load/25(h):
7.5
ECTS Credit of the Course:
7.5