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North South University School of Business BBA Program (Fall’2011

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Course Title : Bank Management (FIN 464) Instructor : M. Morshed, Senior Lecturer, School of Business Office Room : NAC 763 Office Hours: TBA Telephone : 8852000. Ext. 1708 (office) E-mail : mmorshed@northsouth.edu Course Descriptions This course has a somewhat more practical orientation than many other courses in the business program, focusing as it does on the microeconomic problems of financial management of banking firms. This does not mean, however, that the course is devoid of theoretical interest. The course builds on theories and models covered elsewhere in the program; particularly those detailed in the course of Banking and Finance. It also raises some new theoretical problems for consideration, many of them concerned with the way we need to conceptualize the banking firm. Course Objectives This course examines the role and importance of bank financial management to the modern bank. It teaches the basic models of financial management taught by University Economics Departments and Business Schools, which were constructed from the experience of mature capitalist economies. The course discusses the various trends shaping banking markets, such as institutionalization, securitization, globalization and concentration. Among its aims are the following  To set the banking firm in the context of a changing financial services industry  To look at the role of the financial manager within the banking firm  To examine bank capital and capital structure, and to consider the question of the adequate regulation of the banking sector to ensure its safety, to preserve bank liquidity and prevent bank failures. Suggested Readings

 Peter S. Rose & Sylvia C. Hudgins, Bank Management & Financial Services,
8th edition, 2008, McGraw-Hill publications.  Timothy Koch and S Scott MacDonald, Bank Management, Fourth Edition, 2000, Dryden Press, ISBN0030244021.  George H. Hempel & Donald G. Simonson, Bank Management: Text & Cases, 5th edition, Prentice Hall Publication.  R. A. Howlader & Syed Ashraf Ali, Banking Law and Practice, Revised Edition, 2007-8, Mowla Brothers.

Parts of a typical loan agreement. Bank Liabilities. TELEPHONE (7 & 8) Four (4) SERVICES And WEB SITES: Establishing full-service branch offices – choosing locations. Capital Market Instruments. Chapter BANK LENDING. Measuring Risk in banking. How much capital does a bank need? Current pressure to raise more capital. (9 & 10) Five (5) Off-Balance-Sheet Items.POLICIES & PROCEDURES: Types of loans made by (21 & 22) Sixteen banks. Central Bank & monetary policies. Reasons behind the expansion of interstate banking system. Regulation of lending. 17) Ten (10) Security Portfolio. Steps in (16) the lending process. Financial ratio analysis of a customer’s financial (17) statements. Bank’s defenses (19 & 20) Fifteen against risk. Networking. components.Course Outline Chapters Contents Lec. location 13) & regulatory bias in analyzing bank performance. Establishing a Written Loan policy. ATMs. Planning to meet a bank’s capital needs. Measuring the size of bank capital. Trends affecting all banks. The Financial Leverage Factor as a Barometer of a business firm’s capital structure. Chapter MANAGEMENT OF CAPITAL: Bank’s capital & Risk. Bank Holding Company Organization. Investment Maturity Strategies. BRANCHES. New trends & technology. Other Investment Instruments developed more recently. Unit Banking. Chapter THE FINANCIAL STATEMENT OF BANK: Bank Assets. Factors in choosing among the different sources of reserve. Chapter THE INVESTMENT FUNCTION IN BANKING: Functions of a bank’s (16. 12 & Six (6) bank’s performance. Estimating a bank’s liquidity needs. Other useful Bank Financial Statement. Components of the Income Statement. Interest rate risk factors.Money Market Instruments. . Types of bank capital. Branch Banking. Why banks face significant liquidity (11) problems? Strategies for liquidity Managers. Chapter THE ORGANIZATION & STRUCTURE OF BANKS & THEIR INDUSTRY: (5 & 6) Three (3) Differences between large & small bank’s organization charts. Credit Analysis: What makes a good loan. Sources of information about loan customers. Chapter ESHTABLISHING NEW BANKS. Relative importance of the sources of (15) bank capital. Chapter ASSET LIABILITY MANAGEMENT-–DETERMINING & MEASURING (14 & 15) Seven (7) INTEREST RATES: Asset-liability management strategy. Chapter MEASURING & EVALUATING BANK PERFORMANCE: Evaluating a (11. Factors affecting the banker’s choice among investment securities. measurement. Chapter LIQUIDITY & RESERVE MANAGEMENT STRATEGIES & POLICIES: The (18) Eleven demand for & supply of liquidity. # Chapter AN OVERVIEW OF BANKS & THEIR SERVICES: What is a Bank? The One (1) Services banks offer to the public. The impact of size. designing new branches. Chapter LENDING TO BUSINESS FIRM: Types of Business loans: Analyzing (23 & 24) Seventeen business loan applications. (1 & 2) Chapter IMPACT OF GOVERNMENT POLICY & REGULATION ON BANKING: (3 & 4) Two (2) Reasons behind the regulations.

.Important Note This course outline is tentative and the instructor has the right to modify it depending on the class schedule and the performance of the class.  Incomplete (I) will be given in the case where the student misses the final exam due to unavoidable circumstances.  Students are not allowed to switch sections in between.3. Important Instructions  Students are required to bring textbook to every class. But the students should inform the instructor before submitting the grade. Late submission of term paper will not be entertained.  Students need to know how to use word processing packages and spreadsheet software.  University rules will be applied regarding using unfair and unethical means (including cheating. Severe action will be taken in that case. If any body fails to sit for any exam.  Students cannot share anything during the exams/quizzes. Students have to submit computer printouts.7 Chapter – 10.11.  Cell phones must be switched off during classes and exams. plagiarism) during exams/quizzes.2.4 Chapter – 5.  Any kind of threat and pressure will not be tolerated. s/he can sit for comprehensive exam in the next exam.6.16.  There will be no make-up exam/quiz in this course. This must be submitted in time.15. Exam Schedule Exam Exam Date Mid-Term 1 TBA Mid-Term 2 TBA Final Exam TBA Syllabus for Exams Exam Mid-Term 1 Mid-Term 2 Final Exam (Tentative Syllabus) Syllabus Chapter – 1.17 Term Paper: Term paper plays a key role for exam preparation. Marks Allocation Class Attendance Quiz Term Paper Midterm 1 Midterm 2 Final Exam : : : : : : 5% 10% 15% 20% 20% 30% 100% Grading Policy Students will be graded as per university grading policy.

********Good Luck*********** .