Finance 434

FINC 434: Bank Management

Prerequisite: FINC 331

Credit Hours: (3)

Intended to provide student with information on both the structure and functions of commercial banks and on established and new practices of bank management with emphasis on reserves, credit, investment and service. Cases used occasionally to simulate and find solutions to real world problems.

Detailed Description of Course

1. The Commercial Banking Environment.
    a. Bank Organization and Regulation.
    b. Banking Trends and Competition.
2. Bank Performance Analysis.
3. Bank Strategic Planning.
4. Bank Marketing.
5. Asset and Liability Management.
    a. Asset Management.
    b. Liability Management.
    c. Investments Management.
    d. Managing Off-Balance Sheet Activities.
6. Bank Capital Structure and Policy.
7. Credit Policy.
    a. Loan Characteristics.
    b. Credit Analysis.
    c. Profitability Analysis.
    d. Loan Pricing.
    e. Problem Loans and Loan Losses.
8. Risk Management.
    a. Managing Interest-Rate Risk.
    b. Managing Liquidity Risk.
    c. Managing Capital Risk.
    d. Managing Credit Risk.
    e. Managing Operational Risk.
9. Global Banking Activities.
10. Trust Services.

Detailed Description of Conduct of Course

A formal approach to understanding current banking environment and various aspects of bank management.

Goals and Objectives of the Course

The purpose of this course is to provide information about banking environment and how to apply traditional finance concepts to the management of commercial banks. The emphasis is on decision making and specific problem solving tools.

Assessment Measures

Graded assignments may include in-class tests, a final examination, pop quizzes, the assignment and presentation of problem exercises, papers, and class preparation and participation.

Other Course Information


Review and Approval
February 2010 Reviewed Dr. Dan Davidson, Chair