BNK 209

Bank Operation Management

TU BBA-F · Semester 8 · BBA-F curriculum (2021 Common Core)

Requirement
elective
Credits
3
Past papers
0 papers

Syllabus

What this course covers and how the teaching time is divided.

Bank Operation Management Syllabus

Official TU PDF

Tribhuvan University

Faculty of Management

Office of the Dean

Bachelor of Business Administration in Finance (BBA-F)

Course Title: Bank Operation Management

Course Code: BNK 209

Semester: Semester 8

Nature of Course: elective

Full Marks: 100

Pass Marks: 50

Credit Hours: 3 Cr.

Curriculum: BBA-F curriculum (2021 Common Core)

Course Description

:

Students will gain understanding for developing, pricing and manag ing the operations of bank, developing and pricing of deposits and loans, cash operations, types and methods of remittances, foreign currencies and exchange rate determinations, ability to understand and analyze financial statements of the bank. Topics inc luded in the course are: deposits products and their management, lending policies and procedures, treasury, cash, remittance and foreign exchange operations, bank financial statements, major banking risks and ethical considerations in managing banking operations. Course Learning Outcomes On completion of this course the students will be able to: Understand organizational structure and operational framework of commercial banks; Define the concept and procedures for designing and pricing deposit and loan products and other banking services; Describe aspects of cash operations including the duties and responsibilities of cashier; Explain concept and practices of remittances and foreign exchange transactions; Analyze financial statements of the bank using different ratios; Recognize and mitigate risks involved in bank operations with adherence to ethical standards.

Course Objective

:

The course focuses on t he operational dimensions of commercial banks and risks involved therein. The main purpose of the course is to develop the understanding in students required for managing operations of the commercial banks. The emphasis is on process and procedures for managing deposits and loan products, treasury, remittance and foreign exchange operations with due consideration to risk mitigation and role of ethics in bank operations. Course Description Students will gain understanding for developing, pricing and manag ing the operations of bank, developing and pricing of deposits and loans, cash operations, types and methods of remittances, foreign currencies and exchange rate determinations, ability to understand and analyze financial statements of the bank. Topics inc luded in the course are: deposits products and their management, lending policies and procedures, treasury, cash, remittance and foreign exchange operations, bank financial statements, major banking risks and ethical considerations in managing banking operations. Course Learning Outcomes On completion of this course the students will be able to: Understand organizational structure and operational framework of commercial banks; Define the concept and procedures for designing and pricing deposit and loan products and other banking services; Describe aspects of cash operations including the duties and responsibilities of cashier; Explain concept and practices of remittances and foreign exchange transactions; Analyze financial statements of the bank using different ratios; Recognize and mitigate risks involved in bank operations with adherence to ethical standards.

Course Contents:

Lecture hours show the approximate classroom time allocated to each unit.

Unit 1. Introduction to Banking

5 hours
  • Overview of Nepalese banking system
  • Organizational structure of a commercial banks
  • Regulatory framework for bank operations
  • Statue of commercial banking industry in Nepal
  • Key competitors of commercial banks in Nepal.

Unit 2. Management of Deposit Services

5 hours
  • Nature of bank deposits
  • Types of deposit
  • Pricing of deposit
  • Procedure and documents required for account opening
  • Know Your Customer (KYC)
  • Customer Due Diligence
  • Client account maintenance
  • Account closing
  • Deposit marketing and customer care services
  • Banking instruments.

Unit 3. Bank Lending: Policies and Procedure 7 LH s

  • Concept of bank lending
  • Lending principles and process: credit appraisal, financial analysis of borrowers, approval, documentation and disbursement
  • Credit monitoring, supervision and recovery
  • Performing and non -performing loans (NPL)
  • Management of NPL
  • Methods of creating charges on securities
  • Multiple banking and consortium financing arrangements
  • Operations of non fund based services.

Unit 4. Treasury and Cash Operations

3 hours
  • Cash management
  • Security of vault
  • Cash insurance
  • Cash counter
  • Roles and responsibilities of cashier
  • Clearing system: Electronic clearing, Nepal Clearing House ltd.
  • (NCHL)
  • Internal and external fund transfer.

Unit 5. Remittance and Foreign Exchange Operations

7 hours
  • Meaning and types of remittances
  • Parties involved in remittance
  • Methods of remittance
  • Foreign exchange operations: concept of foreign exchange, convertible and non - convertible currencies, exchange rate determination, exchange rate regimes, currency pair, base currency and quoting currency, cross rates, basics of forex arithmetic
  • Nostro and vostro accounts, Foreign Exchange Dealers’
  • Association in Nepal (FEDAN) and its responsibilities.

Unit 6. Bank Financial Statements and Analysis

7 hours
  • Components of bank financial statement: balance sheet, income statements, cash flow statement, BASEL III exposure
  • Off balance sheet items and transactions
  • Key financial indicators and ratios
  • Base rate and cost of funds.

Unit 7. Major Banking Risks and Mitigations

7 hours
  • Concept and nature of banking risks
  • Types of risk and their implications: credit risk, operational risk, market risk
  • Risk weight assessment and capital r equirements
  • Risk identification
  • Measurement and mitigation of credit
  • Operational and market risk.

Unit 8. Ethical Considerations in Bank Operations

7 hours
  • Concept of ethics and its importance in bank operations
  • Code of conduct for bank employees
  • Financial customer protection
  • Emerging ethical issues in operations of Nepalese commercial banks
  • Corporate governance
  • Corporate social responsibility
  • (CSR).
  • Basic Book:
  • Rose, P. S. & Hudgins S. C. Bank Management and Financial Services. New Delhi: Tata
  • McGraw-Hill Education.

Suggested Readings:

Gup, B. E. & Kolari, J. W. Commercial Banking. New Delhi: Willey India Basel Committee on Banking Supervision, Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. Koch, T. W. & McDonald, S. S. Bank Management. New Delhi: Cengage Learning. Nepal Rastra Bank, Unified Directives of Nepal Rastra Bank.