Course Outline

FIN 402 – Bank and Financial Institutions

Summer 2016 [May-August] Course Instructor and Contact Information

Abdullah Al Yousuf Khan MSIT (London), MBA (Dublin), PGD (London) B.Com. (Hon.), M.Com. Finance & Banking (DU) Email: aaykhan@iubat.edu Office: Room # 223 Office Hours: Friday & Saturday (As office is used by other instructors, please come with appointment for academic purposes only.) Tel: 02 8923469-70, Ext. 172 Mobile: 01678 175 645 (office hours only)

Instructor profile

I am teaching finance and banking courses in IUBAT since

April, 2010 in College of Business Administration. I

started my career as a brokers’ authorized representative

in Dhaka Stock Exchange after graduating in Finance and

Banking from DU in 1996. After working f ive and half

years I went to UK for higher study where I acquired post

graduate diploma in business and e -commerce. Then I

persuaded an MBA in accounting and finance from Brain

Wells University in Dublin, I reland. I also acquired a

master degree in information technology from London.

During my study period I worked many organizations l ike

McDonald’s, GAP, MBNA, ASDA, Tesco, and Starbucks

where I gathered practical management experience.

Class Schedules

Section: B & E

Day Time Room #

Friday 8.30-10.35 324

Saturday 6.00-6.50 508

Counseling hours

Day Morning Afternoon

Friday 10.35 - Saturday 4.00

Course objective

By the end of this course, students will understand the primary participants in the money- and the financial markets, the operations and the goals of these participants, the various types of financial instruments and how they differ, the role of interest rates in the economy and how interest rates are determined. They will also know the basics of monetary policy.

Course Description

The course will address the reasons for and the nature of various financial markets and their importance to the global economy. Markets reviewed will include the foreign exchange market, the money market, the capital market for both stocks and bonds, and the mortgage market. Financial institutions serving these markets will be studied with a primary emphasis on the commercial banking industry. The structure of the banking industry and the keys to effective management of a bank will be reviewed and discussed. Competition and regulation in the banking industry will also be addressed. The nature of other financial institutions such as savings and loans, insurance companies, pension funds, finance companies and securities firms will also be examined.

Learning outcomes

Commercial Bank Management is an in-depth study of banking institutions, with special emphasis on commercial banks and their connection to the regulatory body and other

financial institutions. A risk management perspective is adopted, and the fast changing

Required Course Materials & Text Books

1. Rose S. peter and Sylvia C. Hudgins, Bank Management & Financial Services, 7

th edition, McGraw Hill Irwin

Reference books

1. Ross S. Peter: Commercial Bank management, McGraw Hill Irwin, New York, 2003

2. Haslem, John A. Commercial bank management 3. Brick, John R. Bank management 4. Koch W. Timothy, S. Scott MacDonald: Bank

management, Thomson South-western, USA,2003 5. Benton E. Gup, James W. Kolari, Commercial Banking-The

Management of Risk, 3rd

Edition, Wiley,2005

Evaluation:

Course Contents

Session Date/Day Topic Activities/ Reference

1 06/May/16 PART ONE Introduction to the course + Introduction to the Business of Banking and Financial Services Management

Orientation class

2 06/May/16 An Overview of Banks and the Financial Services Sector

Chapter 1

3 07/May/16 An Overview of Banks and the Financial Services Sector

Chapter 1

4-5 13/May/16 The Impact of Government Policy and Regulation on Banking and the Financial Services Industry

Chapter 2

6 14/May/16 The Organization and Structure of Banking and the Financial Services Industry

Chapter 3

7-8 20/May/16 Establishing New Banks, Branches, ATMs, Telephone Services, and Websites

Chapter 4

9 21/May/16 PART TWO Financial Statements and Financial Firm Performance The Financial Statements of

Chapter 5

Banks and Their Principal Competitors

23/May/16 Monday Shab-e-Barat

10-11 27/May/16 Measuring and Evaluating the performance of Banks and Their Principal Competitors

Chapter 6

12 28/May/16 Measuring and Evaluating the performance of Banks and Their Principal Competitors

Chapter 6

13-14 03/June/16 Review Project topic selection

15 04/June/16 1st Term Exam Written

16-17 10/June/16 PART THREE Asset-Liability Management Techniques and Hedging Against Risk Asset-Liability Management: Determining and Measuring Interest Rates and Controlling Interest-Sensitive and Duration Gaps

Chapter 7

18 11/June/16 Asset-Liability Management: Determining and Measuring Interest Rates and Controlling Interest-Sensitive and Duration Gaps

Chapter 7

19-20 17/June/16 1st Presentation Based on Chapter 5 & 6

21 18/June/16 Using Financial Futures, Options, Swaps, and Other Hedging Tools in Asset-Liability Management

Chapter 8

22-23 24/June/16 Risk Management Using Asset-Backed Securities , Loan Sales, Credit Standbys, and Credit-Derivatives

Chapter 9

24 25/June/16 PART FOUR Managing the Investment Portfolios and Liquidity Positions of Banks and Their Principal Competitors The Investment Function in Banking and Financial Services Management

Chapter 10

25-26 01/July/16 Liquidity and Reserve management: Strategies and Policies

Chapter 11

27 02/July/16 Mid Term Written

05-07/July/16 Eid-ul-Fitr

28-29 08/July/16 PART FIVE Managing Sources of Funds for Banks and Their Principal Competitors Managing and Pricing Deposit Services

Chapter 12

30 09/July/16 Managing Nondeposit Liabilities and Other Sources of Borrowed Funds

Chapter 13

31-32 15/July/16 Investment Banking, Insurance, and Other Sources of Fee Income

Chapter 14

33 16/July/16 The Management of Capital Chapter 15 34 22/July/16 PART SIX

Providing Loans to Businesses and Consumers Lending Policies and Procedures

Chapter 16

35 22/July/16 Lending to Business Firms and Chapter 17

Letter Grades Grade Points Marks A 4.0 90-100 B 3.0 80-89 C 2.0 70-79 D 1 60-69 F 0.0 <60

Quizzes: One in Every week 05% Class Participation & Attendance 05% First Term Part of the book 20% Mid Term Part of the book 20% Final Term Entire book 35% Project/Assignment, and 2 Presentations [5+5+5]

15%

Total 100%

Pricing Business Loans 36 23/July/16 Consumer Loans, Credit Cards,

and Real Estate Lending Chapter 18

37-38 29/July/16 PART SEVEN Managing the Future in Global Marketplace Acquisitions and Mergers in Financial Services Management

Chapter 19

39 30/July/16 International Banking and the Future of Banking and Financial Services

Chapter 20

40-41 05/August/16 Presentation 2 Based on chapter 18

42 06/August/16 Ending class

Attendance and Punctuality (academic regulations, page no. 22, IUBAT bulletin)

You are required to attend all classes or other class meetings officially designated for this course. You are also required to complete all assignments. IUBAT or me may make specific requirements about attendance and class participations. I therefore, may assign a final “F” grade in the course to you if you fail to meet any one of the requirements. Only three absences in a course with acceptable reasons may be excused by the instructor in a semester. Permission of the Dean is required to remain absent in three or more consecutive classes for reasons beyond control (e.g. sickness) by you. Remaining absent in class in this course without permission will be served with a notice of warning. Unexcused absences will lead to reduced course grade, suspension from the course or dismissal from the course. You must be punctual in attending classes. Coming late in a class will be penalized. Habitual late comers may be suspended or dismissed from the course. Late submission of assignments etc. will also be penalized by reducing the grade earned on the assignment. You are also required to attend all seminars, workshops, debates, ceremonies or other officially designated activities. Failure to do so will reflect on the conduct of the student.

Academic Offenses (academic regulations, page no. 23, IUBAT bulletin)

The students and faculty are jointly responsible for the academic standards and reputation of the university. It is well recognized that intellectual honesty is the basic requirement for development and acquisition of knowledge. Intellectual honesty is a pre-requisite for continued membership in the university community. Forms of intellectual dishonesty are plagiarism, cheating in examinations, aiding and abetting cheating, use of assignment prepared by others, impersonation of another student at an examination, misrepresentation of information, falsification of academic records, and unruly behavior with instructor. If a student is detected by the instructor in committing academic offense, it may result in an “F” grade for the course or even dismissal of the student from the university.

Dress and Behavior Code for Students

Dress Code: For male students: Trouser and full/half sleeve shirts with necktie, T-shirts with collar/golf shirt, Suit, Blazer, Sweater, Jacket, Muffler in winter. Shawl not allowed. Polished shoes. Sandal/Sandal shoes are not allowed, Clean shaved ( if not keeping beard and/or mustache), Decent haircut, Wearing ID while in the campus. * Presentation attires are strictly to be maintained to Suit, Tie, Dress Slacks and Dress Shirt * Shirt/T-shirt (with collar)/golf shirt (with collar) to be tucked in * Dress code may be relaxed for National days and ceremonial occasions.

For female students: Salwar, Kamiz and Scarf (up-to-date, preferably cotton), Saree (professional attire not in class), Jeans, Kurta, Scarf , Skirt, Top, Scarf, Sweater, cardigan, Jacket, Muffler. Shawl not allowed, Shoes or Sandal shoes with belt and low heel. Sandals not allowed, Properly tied up hair, Limited jewelry and make-up, Wearing ID card while in the campus. * Presentation attires are strictly to be maintained to Suit, Dress Slacks and Dress Shirt *Dress code may be relaxed for National days and ceremonial occasions. *No Tight or revealing clothing.

Behavioral Code:

Speak in English all the time in IUBAT campus. Do not talk loudly and make noise. Do not run around or use offending words or impolite language to anyone. Ragging is strictly forbidden in or outside the campus. Smoking in the campus is prohibited by law. REMEMBER IUBAT PLEDGE

“We will speak in English among ourselves all the time in the IUBAT Campus. We shall endeavor to help each other to do so.” WE SINCERELY BELIEVE THAT THROUGH PRACTICE OF THE ABOVE SIMPLE RULES, ALL OF YOU WILL BENEFIT FROM IMPROVED PERSONAL GROOMING FOR CAREER DEVELOPMENT AND IMPROVE THE IMAGE OF YOUR UNIVERSITY – IUBAT

Miscellaneous

It is a student’s responsibility to read text assignments before the scheduled classes. It is also recommended that students should spend at least three hours (on the average) preparing for each hour of class time.

Assignment, Report, and Presentation:

Assignment is required to complete this subject. Two presentations are set for improving the communication skills as well as depth in the subject. A final report towards the end of the course is compulsory to cover the subject matter to reflect the topical contents. Assignments, reports and presentations must be presented on time.

Summer 2016 Calendar

May June July August

S M T W T F S S M T W T F S S M T W T F S S M T W T F S

6 7 3 4 1 2 5 6

13 14 10 11 3 5 6 7 8 9

20 21 17 18 15 16 15

23 27 28 24 25 22 23 25

29 30

A total of 42 classes are scheduled for the summer semester

1st Term Exam: 04 June, 2016 Mid Term Exam: 2 July, 2016

Holidays: 23 May – Shab-e-Barat

5-7 July – Eid-ul-Fitr