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

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 : 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.

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

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. But the students should inform the instructor before submitting the grade.7 Chapter – 10.  University rules will be applied regarding using unfair and unethical means (including cheating. If any body fails to sit for any exam. This must be submitted in time.  Students need to know how to use word processing packages and spreadsheet software.2.  Students are not allowed to switch sections in between.  Students cannot share anything during the exams/quizzes. 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. plagiarism) during exams/quizzes. Severe action will be taken in that case.17 Term Paper: Term paper plays a key role for exam preparation.3. 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 – 1.16. Students have to submit computer printouts. Important Instructions  Students are required to bring textbook to every class.6.  Incomplete (I) will be given in the case where the student misses the final exam due to unavoidable circumstances.  There will be no make-up exam/quiz in this course.  Any kind of threat and pressure will not be tolerated.4 Chapter – 5.11.  Cell phones must be switched off during classes and exams. . Late submission of term paper will not be entertained.15. s/he can sit for comprehensive exam in the next exam.

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