Energy Systems Engineering (English)
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

FNCE412

Course Name:

Bank Management

Course Semester:

Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Compulsory

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Assoc. Prof. BÜLENT GÜNCELER

Course Lecturer(s):

Assoc. Prof. BÜLENT GÜNCELER

Course Assistants:

Course Objective and Content

Course Objectives:

The objective of this course is to introduce students the banking system and types of banks; some related important articles of Banking Law related to establishment and corporate governance; bank’s organization chart and management’s responsibilities; regulatory environment for running a bank; human resources management; financial statements analysis, ratios and performance evaluation of bank; how to make successful asset and liability management of banks; risk management in banking.

Course Content:

The banking system and types of banks; some related important articles of Banking Law related to establishment and corporate governance; bank’s organization chart and management’s responsibilities; regulatory environment for running a bank; human resources management; financial statements analysis, ratios and performance evaluation of bank; how to make successful asset and liability management of banks; risk management in banking.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
1) • Recognize the techniques of the management of banks and how they are structured.
2) • Distinguish the insight about basic banking principles and regulations surrounding the banking industry.
3) • Analyze financial statements analysis and performance evaluation of banks.
Competence to Work Independently and Take Responsibility

Lesson Plan

Week	Subject	Related Preparation
1)	• Introduce the course to the students • Describe the environment of the subject • List the topics for the whole lecture • Describe various types of bank management techniques • Clarify the roles of bank management • Syllabus • Discuss Course Outline, • Give the key points for mid-term presentations • Explain the power of banking law • Brief about the functions of Corporate Governance
2)	• Definitions of Functions in a bank • Explain the Role of Board and directors • Compare the differences of Powers of General Assembly vs to Board of Directors • Explain the responsibilities of Senior Management • Fields of Activity • Introduction to Banking Law • Articles 3, 4 and 22 - 28	Review the Syllabus in detail Homework: assigned reading for purpose, functions and corporate governance section of banking law for next class session
3)	• Understanding Corporate Governence • Discussion on qualifications of : • Board of Directors, • CEO, • Deputy CEO and • Audit Committee • Discussion on structure of various commercial banks • In perspective of Corporate Governence ( Akbank, İş Bankası, HSBC )	Homework: Refresh the information for reading Corporate Governence of a bank for next class session Study the formation and responsibilities of Audit Committee
4)	• Bank Organization Chart • Identify the components of a bank’s organization chart and describe their functions in banking • Explain Code of Ethics for bankers • Functional job descriptions - CEO - Deputy General Manager - Group Heads, Department Managers - Lower Titles - Head office Organization Chart - Branch Network Organization - Ethical hierarchy in organizational structure	Homework: assigned reading for next class session ( Code of Ethics for Bankers )
5)	• Describe the Financial Aspects of Bank Management • Basics of CAMELS approach - I - Capital Requirement - Asset Quality - Management - Earnings Ratio - Liquidity • Management of Own Funds and Capital • Need for Capital Adequacy • Calculation of Capital Adequacy • Factors effecting Capital Adequacy Ratio • Where to focus for adequate capital base	Homework: assigned topics for Student Presentations at weeks 12-13-14
6)	• Describe the Financial Aspects of Bank Management • Basics of CAMELS approach - II • Management of Assets and Asset Quality Considerations • How to create good quality assets • Ways to improve asset quality • Securitization of Assets • Liquidation of Assets • Types of loans and loan type exposures • Loan Process Discussions	Homework: assigned reading for next class session ( Managing Asset Quality of a bank )
7)	• Basics of CAMELS approach – III ( Management ) • Describe the Important Aspects of Management • Regulatory Requirements for Management, • Job Descriptions • Management Declarations • Authorized Signature List of a bank • Management Committes in a bank	Homework: assigned reading for next class session ( Management )
8)	• Describe the Financial Aspects of Bank Management • Basics of CAMELS approach – IV ( Earnings Ratio ) • Where do banks generate profits • The interest income process • ROA , ROE concepts • Managing Revenues of a bank • Review of Expenses at a bank • Analysis of Revenue Generation • Analysis of Profitability • Key Ratios for performance analysis	Homework: assigned reading for next class session ( Earnings Ratio )
9)	• Describe the Financial Aspects of Bank Management • Basics of CAMELS approach – V ( Liquidity ) • Liquidity Management of a Bank • Cash flow Table • Break up assets and liabilities according to maturity brackets • Maximum cash outflow analysis • Scenario Analysis for maximum cash outflow • Identifying good quality liquid assets	Homework: assigned reading for next class session ( Liquidity )
10)	• Describe the Financial Aspects of Bank Management • Basics of CAMELS approach – VI ( Sensitivity ) • Sensitivity Analysis of a bank during bank management • Stress Testing for Interest Rate Fluctuations • Stress testing for Foreign Exchange Rate fluctuations • Analysis of FX Position • Hedging strategy of Position • Explaning Hedge instruments in Financial Markets • Forwards • Futures • Options • Swaps • Structured Derivatives	Homework: assigned reading for next class session ( Sensitivity )
11)	• Describe the ways to manage other risks in bank management • Regulatory base for risk managing • Market Risks, • Operational Risks • Credit Risk • The role of ethical standards in operational risk • Managing Market Risks, • Identifying the items which may come across with market risk • Detailed analysis of Market risk forms • Credit Risk • Regulations for Credit Risk Management • Provisioning and Monitoring Credits • Operational Risks • Ethical standards	Homework: assigned reading for next class session ( Risk Calculation section of Capital adequacy Regulation of Bank Regulation and Supervision Agency )
12)	• Student Presentations - I • Setting up their own bank Class Presentation	Homework: assigned reading for next class session
13)	• Student Presentations - II • Setting up their own bank	None
14)	• Student Presentations - III • Setting up their own bank	None
15)	• Evaluate students by a final exam • Assess their understanding level from chapters studied throughout the semester • Assessment if they learned articles of Banking Law • Assessment of their understanding about Bank Management Rules • Assessment if they learned about risks in banking	None

Sources

Course Notes / Textbooks:	Division of Supervision and Risk Management Federal Reserve Bank of Kansas City, 2010
References:	Division of Supervision and Risk Management Federal Reserve Bank of Kansas City, 2010

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3
Program Outcomes
1) Closed Department

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Closed Department

Learning Activity and Teaching Methods

Individual study and homework
Lesson
Homework
Project preparation

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)
Oral Examination
Homework
Individual Project
Group project

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Attendance	1	% 20
Presentation	1	% 30
Final	1	% 50
total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Workload
Course Hours	16	48
Study Hours Out of Class	16	64
Project	1	15
Homework Assignments	5	10
Quizzes	4	2
Midterms	1	15
Final	1	22
Total Workload		176