SM82.06: Banking [3 credits]
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
Business Strategies, Liquidity Management, Issues in Banking and Marketing Concepts
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
Theodore A Platz and Thomas P Fitch:
Business banking, Hauppauge, NY, Barron's Educational Series, 2001.
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
Harvard Business Review
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