Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Administration in Finance (BBA-F)
Course Description
:Students will gain an understanding of finan cial and banking system, legal procedures for the incorporation and regulatory framework for the operation of the banks in Nepal. Topics included in this course are; concept of financial and banking system of the country, central banking system, banking pr oducts and services, general legal procedures for establishing and operating a bank, capital structure of a bank, role of technology and emerging trends in banking services. Course Learning Outcomes On completion of this course the students will be able to: Become aware on financial and banking system of the country including central banking system and commercial banking system; Explain the different products and services that banks offer to their clients; Understand general legal procedures for the incorporation and operation of banks; Define bank capital and its components; Recognize trends and contemporary issues in banking services; Explain the use and effect of technology in designing and delivering banking products and services.
Course Objective
:The objective of th e course is to develop an understanding among students the structure of banking system, banking products and services and banking regulations. The emphasis of the course is on equipping students with knowledge on banking products and services, use and effe ct of technology in banking, major banking regulations and emerging trends in banking services required to work as mid-level manpower in banking institutions within and outside the country. Course Description Students will gain an understanding of finan cial and banking system, legal procedures for the incorporation and regulatory framework for the operation of the banks in Nepal. Topics included in this course are; concept of financial and banking system of the country, central banking system, banking pr oducts and services, general legal procedures for establishing and operating a bank, capital structure of a bank, role of technology and emerging trends in banking services. Course Learning Outcomes On completion of this course the students will be able to: Become aware on financial and banking system of the country including central banking system and commercial banking system; Explain the different products and services that banks offer to their clients; Understand general legal procedures for the incorporation and operation of banks; Define bank capital and its components; Recognize trends and contemporary issues in banking services; Explain the use and effect of technology in designing and delivering banking products and services.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. An Overview of Financial and Banking System
- Meaning and importance of financial system
- Major components of financial system
- An overview of Nepalese financial system
- Development of banking
- Roles of b anks in economy
- Types and functions of banks
- An overview of Nepalese banking system.
Unit 2. Central Banking System
- Roles and functions of central bank
- Monetary policy and its implications in banking system
- Open market operatio n: repo, reverse repo, outright sale and purchase
- Statutory reserve requirements: cash reserve ratio, statutory liquidity ratio
- Concept of credit creation and credit control
- Inspection, supervision and regulation of BFIs
- Roles of Nepal
- Rastra Bank.
Unit 3. Banking Products and Services
- Deposit products: current deposit account, savings deposit account, fixed deposit account, call deposit account, margin account
- Payment and collection o f cheques
- Types of cheques
- Reasons for dishonor of a cheque
- Clearing system
- Bank loans
- Types of bank loans, Major lending principles
- Lending process: credit marketing, assessment, administration, recovery
- Primary and secondary collateral securities
- Performing and non-performing loans
- Banking services: remittances, utility services, agency services and e-banking services.
Unit 4. Incorporation and Consolidation of Banks and Financial Institutions
- Registration of banks and financial institutions (BFIs) as a public limited company
- Process and documents required for the registration of BFI
- Reasons for the denial of registration
- Concept of Merger and Acquisitions (M&As)
- Motive and importance of merger and acquisitions
- Status and cha llenges of bank mergers and acquisition in Nepal
- Bank liquidation and its consequences.
Unit 5. Major Banking Regulations
- Importance of bank regulation
- Major provisi ons of Banks and Financial Institutions Act, 2073: preamble of the act, constitution, rights, duties and qualifications of Board of Directors, qualification and responsibilities of CEO
- Nepal Rastra Bank Act, 2058:
- preamble of the act, constitution, duties and rights of Directors, rights and duties of Governor, NRB directives and their implications for BFIs
- Purpose and implications of Anti Money Laundering Act
- Banking Offence and Punishment Act, 2064: nature of offences and punishment.
Unit 6. Bank Capital
- Types and importance of bank capital
- Capital Adequacy Framework
- BASEL Core Principles (I, II and III)
- Internal Capital Adequacy Assessment Process (ICAAP).
Unit 7. Technology in Banking
- Impact of technology in banking and service delivery
- Technology related banking services in Nepal
- Status and challenges of technology in Nepalese banking sector
- Nepal Rastra Bank guidelines towards technology in banking sector
- Cyber security in banking.
Unit 8. Emerging Trends in Banking Services
- Emerging in banking services
- Internet Banking
- Any Branch Banking System
- E -banking:
- branchless banking, mobile wallet, card business, SWIFT, POS
- Financial Literacy
- Application Supported by Blocked Amount (ASBA)
- Customer Reference Number
- Centralized-Account Supported by Blocked Amount (C -ASBA) & Dematerialization (D- MAT)
- Bancassurance, e-Commerce and fee based Business.
- Basic Book Rose, P. S. Bank Management. New Delhi: Tata McGraw-Hill Education.
Suggested Readings:
Rose, P. S., & Hudgins S. C. B ank Management and Financial Services. New Delhi: Tata McGraw-Hill Education. Hubbard, R.G., & O’Brien, A. Money, Banking and Financial System . New Delhi: Pearson Publications. Srivastava, P.K. Banking Theory & Practice. New Delhi: Himalayan Publication House. Koch, T. W. & MacDonald, S. S. Bank Management. New Delhi: Cengage Learning. Nepal Rastra Bank, Unified Directives of Nepal Rastra Bank. Government of Nepal, Banks and Financial Institutions Act 2073.