FNCE412 Bank ManagementIstanbul Okan UniversityDegree Programs Automotive Engineering (English)General Information For StudentsDiploma SupplementErasmus Policy StatementNational Qualifications
Automotive 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
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) Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2) The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3) The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4) Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5) Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7) Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8) Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9) Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10) Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11) Information about the universal and social health, environmental and safety effects of engineering applications and the ways in which contemporary problems are reflected in the engineering field; awareness of the legal consequences of engineering solutions.
12) Knowledge on advanced calculus, including differential equations applicable to automotive engineering; familiarity with statistics and linear algebra; knowledge on chemistry, calculus-based physics, dynamics, structural mechanics, structure and properties of materials, fluid dynamics, heat transfer, manufacturing processes, electronics and control, design of vehicle elements, vehicle dynamics, vehicle power train systems, automotive related regulations and vehicle validation/verification tests; ability to integrate and apply this knowledge to solve multidisciplinary automotive problems; ability to apply theoretical, experimental and simulation methods and, computer aided design techniques in the field of automotive engineering; ability to work in the field of vehicle design and manufacturing.

Course - Learning Outcome Relationship

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2) The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3) The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4) Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5) Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7) Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8) Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9) Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10) Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11) Information about the universal and social health, environmental and safety effects of engineering applications and the ways in which contemporary problems are reflected in the engineering field; awareness of the legal consequences of engineering solutions.
12) Knowledge on advanced calculus, including differential equations applicable to automotive engineering; familiarity with statistics and linear algebra; knowledge on chemistry, calculus-based physics, dynamics, structural mechanics, structure and properties of materials, fluid dynamics, heat transfer, manufacturing processes, electronics and control, design of vehicle elements, vehicle dynamics, vehicle power train systems, automotive related regulations and vehicle validation/verification tests; ability to integrate and apply this knowledge to solve multidisciplinary automotive problems; ability to apply theoretical, experimental and simulation methods and, computer aided design techniques in the field of automotive engineering; ability to work in the field of vehicle design and manufacturing.

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