SCHOOL OF ECONOMICS, FINANCE AND BANKING (SEFB)

UUM COLLEGE OF BUSINESS

UNIVERSITI UTARA MALAYSIA

No. Information on Course

1. Course Name : BANK MANAGEMENT

2. Course Code: BWBB2013

3. Name(s) of Academic Staff: Dr. Lu Ming Pey

Dr. Edie Erman bin Che Johari

4. Rationale for the inclusion of the course in the programme:

This is one of the core courses for Bachelor of Banking programme

5. Semester/Year Offered: 2/1

Credit Value: 3

6. Pre-requisite (if any): Nil

7. Objective(s) of Course :
After completing this course, students should be able to:
1. Explain the important aspects of bank management, such as bank capital
management, asset and liability management, risk management and bank strategic
planning.
2. Describe bank financial statement and evaluate bank performance
3. Discuss and apply various techniques to solve bank management problem.
8. Course Learning Outcomes:
Upon completion of the course, students are able to
1. Explain theories, concept, and principles in bank management (C2)
2. Apply technical skills to enhance their competency in solving banking issues (C3)
3. Apply digital technologies in obtaining information for decision making (C3)
4. Demonstrate the ability to calculate, present and interpret numerical data in
analyzing information (C3,A2)
9. Transferable Skills:
1. Practical skills
2. Digital SkillsInformation Management Skills
3. Numeracy Skills

10. Teaching-learning and assessment strategy:

Mixed method between teacher-centred and student-centred.
For the assessment strategy it is a continuous assessment.

11. Synopsis:
This course covers several aspects of concept and technique in bank management
practices today. Students will be introduced to an overview of the banking industry and
regulations governing the banking sector. A comprehensive analysis of bank financial
statement to measure and evaluate bank’s performance in terms of its profitability,
assets and liquidity will be discussed in detail. There will also be a thorough explanation
on the effective management of bank capital, liquidity planning and management of
sources and uses of funds in addition to efficient management of asset and liability. This
course will also include other important topics such as managing investment portfolio,
bank’s strategic planning and budgeting process, risks in banking as well as electronic
banking.

12. Mode of Delivery:

Lecture, discussion, presentation, peer review
 Assessment Methods and Types:
13.
Coursework – 60%
- 2 Quizzes -10%
- Assignment 1 - 15%
- Assignment 2 - 15%
- Assignment 3 - 20%
Examination – 40% (Online Final Examination)
14. Mapping of the course/module to the Programme Aims

Programme Aims Course Learning Outcomes

1 2 3 4

The aim of the programme is to produce

professional bankers who are fully equipped
with knowledge and skills to manage and
lead the banking industry.

   
 18. Content outline of the course/module and the SLT per topic

Face to Face
Learning
Topic OL SL TLT
Outcomes SCL/
TL T P
O
1.0 INTRODUCTION TO BANKING AND
FINANCIAL SERVICES MANAGEMENT
1.1 The organization and structure of
the banking industry
1,2,3 2 0 0 0 1 3 6
1.2 Marketing of banking services
1.3 Impact of liberalization and
globalization on banking
management
2.0 BANK REGULATIONS AND
COMPLIANCE
2.1 The importance of bank regulation
2.2 Types of bank regulation 1,2,3 3 0 0 0 0 3 6
2.3 Instruments of monetary control
2.4 Impact of bank regulation on the
banking sector
3.0 ANALYZING BANK FINANCIAL
STATEMENTS
3.1 Understanding the financial
statements 1,2,3 2 0 0 1 1 4 8
3.2 Off balance sheet items/activities
3.3 Other bank financial statements
4.0 MEASURING AND EVALUATING BANK
PERFORMANCE
4.1 Evaluating performance
4.2 The impact of bank size
1,2,3 3 0 0 1 1 5 10
performance
4.3 Using financial ratios and other
tools to evaluate bank
performance
5.0 BANK CAPITAL MANAGEMENT
5.1 The importance of bank capital
5.2 Bank capital and risks
1,2,3 2 0 0 1 1 4 8
5.3 Measuring size of bank capital-the
capital adequacy ratio (CAR)
5.4 Types of bank capital
6.0 LIQUIDITY MANAGEMENT
6.1 Bank liquidity
6.2 Liquidity and bank size
6.3 Policy of liquidity management
1,2,3 2 0 0 1 0 3 6
6.4 Supply and demand of bank’s
liquidity
6.5 Techniques for liquidity strategies
6.6 Bank’s liquidity needs
7.0 ASSET-LIABILITY MANAGEMENT
7.1 Asset-liability Management
strategies 1,2,3 3 0 0 0 1 4 8
7.2 Gap analysis
7.3 Duration analysis
8.0 THE INVESTMENT FUNCTION IN
BANKING
8.1 Money market instruments
8.2 Capital market instruments
8.3 Other instruments- equity,
insurance, unit trust etc 1,2,3 3 0 0 0 1 4 8
8.4 Factors affecting the banker’s
choice among investment
securities
8.5 Maturity Management Tools
9.0 BANK SOURCES AND USES
9.1 Managing deposit services
9.2 Managing non-deposit services
9.3 Managing non-deposit sources
1,2,3 1 0 0 2 0 3 6
9.4 Composition of bank deposits
9.5 Measuring cost of funds
9.6 Pricing deposits using marginal
cost
10.0 BANK STRATEGIC PLANNING AND
BUDGETING PROCESS
10.1 The startegic planning process
10.2 Budgeting
10.3 Monitoring and controlling 1,2,3 3 0 0 0 1 4 8
10.4 Quality assurance
10.5 Corporate restructuring in banking
11.0 RISK IN BANKING
11.1 Credit risk
11.2 Liquidity risk
11.3 Market risk
1,2,3 1 0 0 1 1 3 6
11.4 Interest rate risk
11.5 Earning risk
11.6 Solvency risk
11.7 Operational risk
12.0 DIGITAL BANKING
12.1 Evolution in digital banking
12.2 Current issues and challenges in 1,2,3 1 0 0 1 0 2 4
digital banking
12.3 Digital banking in Malaysia
26 0 0 8 8 42 84

Student Learning & Online Online

Face to Face SLPA TLT
Assessment Learning Assessment

Course Delivery and

34 8 42 84
Preparation

Coursework 60%
0.4 5.1 17.1 22.6

Final Examination 40% 2.50 0 11.00 13.60

Total Notional Hours 36.9 8 5.1 70.1 120

Credit Hours 3

Main References:
Rose, P. S. & Hudgins, S. C. (2013). Bank Management & Financial Services, 9th ed. Boston: McGraw-Hill
International Edition.

Additional References:
Bank Negara Malaysia, (1999), The Central Bank and The Financial System in Malaysia: A Decade of
Change, Bank Negara Malaysia.
Bank Negara Malaysia, Annual Report.
MacDonald, S. S. & Koch, T. W. (2006). Management of Banking, 6th ed. Mason, Ohio: Thomson South-
Western.