FNCE412 Bank ManagementIstanbul Okan UniversityDegree Programs Civil Engineering (English)General Information For StudentsDiploma SupplementErasmus Policy StatementNational Qualifications
Civil 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: Spring
Course Credits:
Theoretical Practical Credit ECTS
3 0 3 6
Language of instruction: EN
Course Requisites:
Does the Course Require Work Experience?: No
Type of course: University Elective
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
Competence to Work Independently and Take Responsibility
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.
Learning Competence
Communication and Social Competence

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) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems.
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.)
4) Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively.
5) Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions.
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
7) Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
9) Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices.
10) Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development.
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions.

Course - Learning Outcome Relationship

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems.
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.)
4) Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively.
5) Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions.
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
7) Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
9) Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices.
10) Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development.
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions.

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