Commercial Bank Operation and Management
Release Date: 2017-09-21Basic Information
1. Course Type: Specialized Elective Course
2. Class Hours: 36 (45 minutes each class hour)
3. Credits: 3 credits
4. Suitable for: Graduate Students of Finance
Course Introduction
This course introduces and researches the management theory, management methods, and all kinds of basic businesses and innovations of modern commercial banks. Taking part in this course requires students to be familiar with the basic principles of economics, foundations of ffinance and the basic method of mathematics and statistical analysis.
The Main Teaching is focused on analysis of the business environment which include operational management of modern commercial banks from the macro to the micro aspect. From the perspective of linking theory and practice, the course primarily discusses management principles, strategies and methods of current commercial bank business by practice. The course takes our country's ccommercial banks as the main object of study, as well as to draw management experience from commercial banks in the United States. Taking part in this course requires students to be able to apply the basic theory and principles of management they have learned, to analyze the case of domestic and foreign commercial banks management, in order to enhance practical skills. At the same time, in order to improve the student's ability to research issues using basic theory, this course adopts the modern economics research methods to interpret the latest theories of commercial bank management.
Course Objectives
Through the course of studies, students should master the basic theory of commercial banks, commercial bank system and the objective of bank management. Students should be familiar with the basic businesses of banking. Students should know commercial bank management theory and its development. Students should analyze bank risk management and business performance. In a word, based on mastering the above content, students should be able to use the related theory and method to analyze the specific problems in specific management of commercial bank.
Outline of Course Content
Chapter 1 Introduction of commercial bank
Overall Objective:
1. What is a commercial bank and its function.
2. The organizational structure of commercial banks and their development
Contents:
Section1. The function of commercial banks
Section2. The organizational structure of commercial banks
Section3. The development of commercial banks
Chapter 2 Capital management
Overall Objective:
1. The capital structure and function of commercial banks
2. The evolution of the capital adequacy ratio and the "Basel Protocol".
Contents:
Section1. The capital structure and function of commercial banks
Section2. Base Accord and Capital Management
Chapter 3 Bank Liabilities Management
Overall Objective:
1. The constitution of commercial bank liabilities.
2. The management of commercial bank liabilities.
Contents:
Section1. Deposit Liabilities
Section2. Non-deposit Liabilities
Section3. The management of commercial bank liabilities
Chapter 4 Cash Assets and the Management of Commercial Bank Liquidity
Overall Objective:
1. Structure of commercial bank assets in cash.
2. Prediction and management needs of the liquidity of a commercial bank
Contents:
Section1. Cash assets of commercial banks
Section2. management of commercial bank liquidity
Chapter 5 Commercial Bank Loans Management
Overall Objective:
1. Loan process and credit analysis
2. The management of enterprise loan
3. The management of consumption loan
Contents:
Section1. The management of loans
Section2. The management of enterprise loan
Section3. The management of consumption loan
Chapter 6 Commercial bank investment management
Overall Objective:
1. The structure and function of commercial banks investments
2. investment technology analysis of commercial banks
Contents:
Section1. The function of commercial banks investment
Section2. The investment technology analysis of commercial banks
Chapter 7 Commercial banks assets and liabilities Management
Overall Objective:
1. The management strategies of interest rate sensitive gap.
2. Duration gap management.
Contents:
Section1. Assets and liabilities management theory
Section2. The management strategies of interest rate sensitive gap
Section3. Duration gap management
Chapter 8 Off - balance sheet business of commercial banks
Overall Objective:
1. The characteristics of a commercial banks off-balance sheet business
2. The classification of management with off-balance sheet business
Contents:
Section1. summary of off-balance business sheet of commercial banks
Section2. The classification management of off-balance business sheet
Chapter 9 The financial statement analysis and performance evaluation of commercial banks
Overall Objective:
1. Commercial banks' balance sheet, profit table and the cash flow statement
2. performance evaluation of commercial banks
Contents:
Section1. The financial statement analysis of commercial banks
Section2. performance evaluation of commercial banks
Class Hours Distribution
Week 1and 2 Chapter1
Week 3and 4 Chapter2
Week 5and 6 Chapter3
Week 7and 8 Chapter4
Week 9 Midterm
Week 10 Chapter5
Week 11 and 12 Chapter6
Week 13 and 14 Chapter7
Week 15 and 16 Chapter8
Week 17 and 18 Chapter9
The total course hour is 36, which will be evenly distributed in 18 weeks, that is every week will have 2 course hours.
Text book
Bank Management (9th Edition), Peter S Rose , China Machine Press , 2013
Course requirements and grading
Grading Policy: Your grade for the course will be calculated as follows:
Regular Homework and Class Participation 15%
Midterm 15%
Final Exam 70%
Attendance: Regular attendance is an important requirement for successful performance in this course. If a student repeatedly misses classes, questions will be raised with the administration and suggesting the student withdrew from the course.
Homework problems: problem sets will be assigned regularly. All of the students will get a chance to present homework solutions in class. At this point, it is not as important to have a correct solution as it is to demonstrate that you have worked on your homework seriously. Please, start looking at problems right away so that you can ask for help if you need it. In addition to my office hours and email, you can use the homework discussion board on Blackboard for homework help. Your homework problems will help you to understand the material and to systematically prepare for exams. Class participation and homework will account for 15% of your grade.