Banking

SM82.06: Banking [3 credits]
Semester: August

Rationale:

Banking as a business has evolved from its traditional roots of accepting deposits and making loans to encompass a variety of financial products and services. Professionals seeking to build a career in banking need to understand the business models and synergies underlying the portfolio of products and services that a modern bank typically handles.

This course will enable participants to:

  • Understand securities markets and the role of trading and brokerage.
  • Know and understand the products, transactions, and business strategies of commercial banks, retail banks, investment banks, and corporate banking.
  • Understand the business of mutual funds
  • Be aware of the importance and mechanisms of cash and liquidity management.
  • Be aware of strategic and marketing issues in banking
  • Be able to apply strategic and marketing concepts to the banking industry

Catalog Description:

Business Strategies, Liquidity Management, Issues in Banking and Marketing Concepts

Pre-requisite(s): None

Course Outline:

I. Corporate Banking

  • Debt Products
  • Trade Products – Overview
  • Liability Products
  • Letter of Credit
  • Transaction Banking
  • Bank Guarantees
  • Cash Management Services
  • Pricing of Banking products

II. Financial Planning and Wealth Management

  • Treasury Products
  • Project Finance and Debt syndication

III. Investment Banking

  • Securitization and Distressed Debt
  • Segmentation and Prospecting

IV. Funds Management

  • Calculating NAV
  • Open ended and close ended funds
  • Entry and exit load in fund management
  • Identification of sectors for fund management
  • Analysis and sectors
  • Entry and exit strategy

V. Risk Management in Banking

  • The risk management process – analysis and structuring
  • Credit risk assessment
  • Financial statement analysis

Textbook(s):

Theodore A Platz and Thomas P Fitch:
Business banking, Hauppauge, NY, Barron's Educational Series, 2001.


Reference Books:

S. Heffernan:
Modern banking, Hoboken, NJ, Wiley, 2005.

J.W. Kolari, B.E. Gup:
Commercial banking: The management of risk, Hoboken, NJ, Wiley, 2004


Journal and Magazines:

Journal of Banking & Finance
International Journal of Bank Marketing
The Banker
Banking World
Harvard Business Review

Grading System:
The final grade will be computed from the following constituent parts: mid-term exam (30%), final exam (40%), assignments (30%). Open/closed-book examination is used for both mid-term and final exam.


Instructor(s): Dr. Sundar Venkatesh