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 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