Commercial Bank Management

DESCRIPTION:
The special role of financial institutions in the market, and how it relates to the regulatory framework under which commercial and investment banks operate.

RATIONALE: 
The course examines the key risks of financial institutions (market, credit, liquidity, pre-payment risks) and the importance of Asset-Liability management. Students will be exposed to key trends and changes that take place in the banking sector, the current problems confronting managers in banking, and become familiar with the various career opportunities in the industry.

LEARNING OUTCOMES: 
As a result of taking this course, the student should be able to:
1. Critically evaluate the role of financial institutions in the economy, their structure, and the regulatory environment in which they operate, as well as the implication of regulations in the structure of capital.
2. Discuss the analytical foundations related to the asset-liability management (ALM) of financial institutions, the risks involved, and the impact on the valuation of financial institutions.
3. Analyse and evaluate the management of the lending, investment, and trading activities of financial institutions, the related risks and the management of these risks. Understand the role and the risks of off-balance sheet activities.
4. Assess the role of capital in financial institutions and the importance of capital management.

METHOD OF TEACHING AND LEARNING:
In congruence with the teaching and learning strategy of the college, the following tools are used:
- In class exercises and real life examples that help lecturer to illustrate basic concepts, and techniques and involve the use of spreadsheet application
- In class discussion using interactive cases that aim to enhance students' analytical and critical capabilities as well as their communication skills. Students are expected to be prepared and they are encouraged to present their views and answers to their peers
- Use of concept maps to provide an overview of topics discussed
- Group discussion - students are divided into groups to perform short research activities that involve the use of web search or the use of financial data bases
- Blackboard - use of material made available online