Course title

Bank Management

Code

 Fin 410

Professor

Course objectives (competences):The objective of the course of Bank management is to deliver to the student the knowledge in the field of bank management and with specific skills for implementing that knowledge in the practice. In order to achieve these objectives, the learning program will go through the theoretical aspects of bank management, and after that, it will focus on its practical implementation.With learning the basics from this learning program, the students can:

• To learn the definition of the basic terms, meanings and the contents of the bank management;
• To analyze the performances of banks thru analysis of the financial statements of the bank (Balance sheet, Income statement).
• To run credit, deposit and off-balance activities of the bank (credit procedures, investment in stocks, deposit mobilization, etc).
• To master the basic tools of credit analysis;
• To use contemporary methods and techniques in bank management (methods for pricing of loans and deposits, methods for liquidity management, investment strategies in securities)
• To gain knowledge about the most important banking risks.
• Tо get acquainted with the principles of international capital adequacy regulation.    

Course content:

This course is directed towards the basic aspects of managing commercial banks. First, the basic components of designing and implementing strategies for the development of  banks are being elaborated. Then, a new approach for managing banks is being introduced, which is assets liquidity management (A/L management). Then some methods for analysis and evaluation of the financial performances of the banks are being elaborated: liquidity, solvency, and profitability.  Special attention is given to important risks of bank management and their measurement: credit risk, interest risk, F/X risks, market risk and the risk of off-balance positions. Specifically, this course focuses on financial statements, performance evaluation models, basic types of risks and risk measurement, credit process and credit policy, credit analysis, types of loans, liquidity management, investment in securities, sources of funds, assets and liabilities management, capital and capital regulation, off-balance-sheet activities and financial services and international banking.