Course Specification

Transcription

1 1 International Islamic University Chittagong Course Specification Department: Economics and Banking Programme: Hons Semester : 4 th 1. Overall aims of course 2.(a) Intended Learning Outcomes (ILO) Of the course. 2(b) Programs Outcome Faculty: Faculty of Social Science A. Basic Information Course Code: BNKG- Name of Course : Commercial Banking Pre-requisites:(if any) 202 Credit: Contact Hours: : Major/Minor/Optional Semester:4 th Level: Basic (Three) hrs/week Number of lectures= 42 ;[18 lectures before Mid-term and 24 lectures after Mid-term] Number of Tutorial/Assignment: At least two; Number of practical: Case Study Total Marks : 100 [ 10% Class attendance + 10% Assignment/Presentation/ Class Test + 0% Mid-Term + 50% Final Examination] B. Professional Information Rationale: Commercial banking is a complex business activity which involves financial intermediation with low equity and high fixed cost based finance. Unlike conventional forms of business, involves complex financial market risks and operates under government regulations. As students of banking arena, students should have proper knowledge of. The course aims to introduce the students with the intricacies of complex banking business and also helps in understanding the main regulations required to be followed in banking industry.. The objectives of this course are : 1. To understand the concept and history of banking industry 2. To understand the theoretical knowledge of. To be acquainted the real practice of practice in Bangladesh a. Face to Face b. Independent Total: a+b Student Learning learning Time (SLT) in 42 hours Lectures Library +Internet Face to Face + hours (Including Assignments +Home study) Independent Learning and Class Test) 42H 8H 125 H 1. This course will help to understan priciples, enviroment, basic concepts 2. This course will help to know about funtions of. This course will help to relate thoeirtical concepts with practical scenerio of 4. It will help to know about distintive aspects between conventional banking and islamic banking practice of 5. It will help to know contemprary issues of. Measurement and management of risks faced by 7. It will help to know about rules and laws that regulate practices At the end of the programme, students are able to- 1-Understand the concept of bank, banking systems, functions of, credit creation of system and principles of system. 2 -Know about details of negotiable instruments so that sound use of those can be ensured in practical life.

2 2.Course Synopsis Weeks Contents 1&2 &4 5 - Understand bank environment, factors of bank environment, banker customer relationship, obligations and rights of bankers 4- Be able to know about different types of deposit, deposit cost structure, deposit customers and learn how to price deposit and manage dynamic deposit base. 5- Be able to know details about loan and advances of, different modes of charging security and take responsibility for loan sanctioning, follow up, recovery - Be able to know about details concept, function and regulations of foreign trade operation and take responsibility to perform the foreign trade operation in a commercial bank. 7- Be able to understand the basic concept, functions and rules regulation of Islamic Banking System and to take responsibility to perform Islamic Banking Practices by ensuring full compliance of distinguished features of Islamic Sariah 8- Understand the practice of factoring and purchasing/discounting of bills to be able to take responsibilities to perform those in practical life. 9 Understand the different types of risks faced by and management of these risks 10- Understand the important rules and regulations that govern the operation of commercial banks. This course provides a precise introduction to gist of overall banking practices and brief overview of banking industry in Bangladesh. This course includes the needed parts of negotiable instruments act relevant to banking industry and the way a bank manages environment. A thorough discussion is made regarding bank products which includes types of deposit and loan product, management of deposit and loans, pricing of banks products etc. A detail discussion of foreign exchange operation of is included in this course. Here a brief discussion regarding Islamic Banking is also included so that learner can differentiate between conventional banking and Islamic banking system. Finally this course is adorned by including contemporary baking issues and issues regarding rules and regulation that governs banking practices in both domestic and global arena. 4.Content outline of the course / module and the SLT per topic Introduction to Commercial Banking Financial Intermediary; Significance of Financial Intermediary: Different types of Financial Intermediary; Different types of Banks and Banking System;Commercial Banking; Brief overview of Functions of Commercial Banking; Principles of Commercial Banking;Creation of Credit by Commercial Banks; Limitations of Credit Creation, An overview of Banking Scenario in Bangladesh. Negotiable Instruments Negotiable Instrument; Essential Characteristics of Negotiable Instruments; Promissory Notes, Bills of Exchange and Cheque; Parties to Negotiable Instruments; Holder and Holder in Due Course; Precautions to be taken by Paying Banker while making payment of Cheque; Reasons of Dishonoring Cheque; Crossing of Cheques. Management of Bank Environment& Banker-Customer Relationship Meaning of Environment &Business Environment; Need for Study of Environment of Banking; Environmental Factors that Affect Banking Business; Managerial Problems of Banks Caused by External Environment; Concept of Banker and Customers; General Relationship Between Banker and Customers; Obligation of a Banker, Banker s rights; Garnishee Order. Learning Hours Task

3 Deposits Management of Commercial Banks Deposits; Types of Deposits; Types of Banks Accounts; Types of Deposit Customers; Deposit Cost Structure; Forecasting Deposit Need; Significance of Relationship Marketing for Hunting Deposit; Pricing of Deposits; Different types of Pricing Deposits Mid-Term Examination:0 marks, Time: 1.5hrs; Answer any three questions out of four. Each question will carry 10 marks. There may be two/ three parts in each question. Loan & Advances Management of Commercial Banks Loans and Advances, Types of Loans, Sound Lending Principles; Different Types of Loan Pricing; Loan Sanctioning Procedure; Credit 7 Risk Scoring Model; Funded Vs Non Funded Lending; Different Modes of Charging Security; Loan Follow up, Loan Recovery, Loan Classification; Bad Loan Management Foreign Trade Operation of Commercial Banks Foreign Trade Operation; Off-Shore Banking Import Business, Import Order, Import Procedures, Advance TT, Letter of Credit, Types of 8&9 Letter of Credit, L/C Opening Procedures, UPDC-00; Export Business, Export Policy, Export Procedures, Remittances; LORO, VOSTRO and NOSTRO Accounts; Operation distinctions between Islamic Banks and Conventional Banks 10 Concepts of Islamic Banks, Uniqueness of Islamic banks in general banking, loan/investment and international trade. Understanding Different Risks of Commercial Banks Interest Rate Risk, Market Risk, Credit Risk, Off Balance Sheet Risk, 11 Foreign Exchange Risk, Sovereign Risk, Technology and other Operational Risks, Liquidity Risk Measuring and Managing Risks of Commercial Banks Liability and Liquidity Management, Repricing Model and Duration, 12&1 Deposit Insurance and Other Liability Guarantees, Capital Adequacy, Product Diversification, Geographic Expansion, Loans Sales, Securitization Regulation of commercial Banking: Risk Management Guidelines for Banks; Foreign Exchange Guidelines; Guidelines on Money 14 Laundering and Terrorist Financing; Risk Management Guidelines for Banks; Guidance Notes on Prevention of Money Laundering for Banks; BASEL Accord; 15&1 Analysis of Contemporary Cases, Presentation, Quiz Final Examination:50 marks; Time: 2.5 hrs; Answer any five questions out of seven. Each question will carry 10 marks. There may be two/ three parts in each question. 5( a). Teaching- Learning / assessment strategy 5(b) Mode of Delivery Type of Assessment Assignments/Term Paper Lectures Description Independent study, group discussion In-class discussion Lecture, Class Discussion, Reading Assignment & Class Test

4 4. Assessment Methods and Type/Course Assessment State weightage of each type of assessment. LO Method % Assignment +Quiz / Class Test+Presentation 10 Class Attendance 10 Mid Semester Examination ( After six weeks) 0 Final Examination ( After 15 weeks) 50 TOTAL 100 Mapping of Course/Module to Learning Outcomes Learning Outcomes Program Outcomes This course will help to understan priciples, enviroment, basic concepts 2. This course will help to know about funtions of. This course will help to relate thoeirtical concepts with practical scenerio of 4. It will help to know about distintive aspects between conventional banking and islamic banking practice of 5.It will help to know contemprary issues of.measurement and management of risks faced by 7. It will help to know about rules and laws that regulate practices. Required references supporting the course Maheshwari S.N. (1991), Banking: Law and Practice (Latest Edition), Kalyan Publication. Rose Peter S. (2002), Commercial Bank Management, McGraw-Hill/Irwin, 5th edition, New York, USA. Saunders A. and Cornett M. (201), Financial Institutions Management: A Risk Management Approach, McGraw-Hill/Irwin, 8th edition, New York, USA. Recommended references supporting the course 7. Facilities required for teaching and learning; Laptop and Multi -Media projector may be required.

5 5 Prepared by: Checked by: Approved by: Md Amzad Hossain Lecturer Prof.Dr. Mohammed Saiful Islam Co-ordinator Prof.Dr.Muhammad Abdul Mannan Chowdhury Dean