Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course contains introduction of wholesale and retail banking, wholesale bankin g, retail banking, corporate lending vs. consumer lending, credit process for corporate and consumer.
Course Objective
:Familiarize the students with the knowledge related to banking business , develop skill to acquire knowledge of wholesale and retail baking, make able to know lending p rinciples and practices, various aspect of bank loan, their features, credit risk and other associated risk with wholesale and retail products of bank. Course Description This course contains introduction of wholesale and retail banking, wholesale bankin g, retail banking, corporate lending vs. consumer lending, credit process for corporate and consumer.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction
- Nature of banking business, Major functions of bank, Different types of FIs and bank, Structure and size of banking industry in Nepal.
Unit 2. Wholesale Banking
- Meaning and concept of wholesale banking, Characteristics, Target group of wholesale banking :
- corporate client and Individual client, Pros and cons of wholesale banking , Corporate salary account, R eal time gross settlement (RTGS) system, Trade finance, Corporate depositors :
- insurance company, investment trust, and pension fund.
Unit 3. Retail Banking
- Meaning and concept of retail banking, Characteristics, Target group, Retail Loan product, Retail deposit product, Emerging issues in retail banking, Motivating factors for retail client, agency services, utility payments , Debit card, credit card and others retail services , modalities of funds transfer and clearing cheques.
Unit 4. Corporate lending Vs. Consumer Lending
- Meaning and concept, Characteristics, Motivation factors, Selection of corporate client, Product paper, Credit policy guideline, types of corporate lending : Working capital loan, term loan, mortgage loan, project loan, equity loan, consortium loan, bridge gap loan. Types of consumer loan- Home loan, auto loan, education loan.
Unit 5. Credit Process for Corporate and Consumer Lending
- Credit appraisal- 5 c’s Model, SWOT analysis, Industrial analysis, Financial viability of proposed project, evaluation of risk in product. Credit approval, Credit documentation and administration, Credit disbursement, Credit monitoring and supervision, Collateral: Cash backed and assets backed
Unit 6. Marketing of Banking Product and Services
- Marketing concept- Products and Services in Banks, Marketing mix: Product strategies - Pricing:
- objectives, factors, methods, strategies -Distribution channels -Promotion: Components, Factors, Strategies-Promotion mix integration-Marketing Information Systems.
Suggested Readings:
Rose, P. S. and Hudgins, S. C. Commercial Bank management. New York: McGraw-Hill Irwin. Suresh, P. and Paul, J. Management of Banking and Financial Services. Noida: Pearson India Education Services Pvt. Ltd. Paudel, R. and others. Commercial Bank Management. Kathmandu: Asmita Books Publishers & Distributors(P) Ltd. NRB Publications