INFORMAZIONI SU

Bank Management

CORSO DI STUDIO: Corso di Laurea Magistrale in Banca e Finanza

a.a. 2015/2016

Denominazione insegnamento/Course Title

Bank Management
Economia e gestione bancaria

Lingua dell’insegnamento: Inglese
Crediti e ore di lezione: 9 CFU, 72 ore di lezione

Moduli: NO

Settore/i scientifico disciplinare: SECS-P/11

Docente: Enrico F. Geretto
Indirizzo email: enrico.geretto@uniud.it
Pagina web personale: http://people.uniud.it/page/enrico.geretto

Prerequisiti e propedeuticità/Requirements

The course takes place in the second semester of the second year of the bachelor degree: it assumes as prerequisite, the exam of 'Intermediari finanziari: bilanci e vigilanza'.
Regarding the prerequisites, they are both represented by the teachings imparted in the three-year course (with reference to issues such as connoting the subject area like Economics of Financial Intermediaries, Banking and Insurance Operation Techniques, etc.) and, more generally, by the contents characterizing the subjects that have been taught during the first year of the bachelor degrees

Conoscenze e abilità da acquisire/Knowledge and skills

The knowledge and skills provided to students through the course are expected to result in the potential ability to integrate themselves under different management areas characterizing the banks activities (Finance, Credit, Risk Management, Planning and Control, etc.): this in line with the strategic objectives of the bachelor degree course in Banking and Finance

Skills

The course aims to give knowledge regarding the following major elements:
• The functions of the bank and its actions as part of the financial system;
• The analysis of the bank's balance sheet and the determination of its performance;
• The transversal functions: marketing and organization;
• The typical areas of management (funding, loans, securities investment, liquidity and treasury management);
• Risk management (interest risk, liquidity risk, market risk, credit risk, operational risk);
• Capital management and value creation.

In this way it should be understood the rules applied in practice by banks in the management of its various business areas.
Through the proposition of these themes, it should be created the conditions so that those attending are able to address and fully carry out activities related to both the management of peripheral units (branches, agencies, regional offices, etc.), and in the case of coverage of functions at general headquarter (Finance Dept., Risk Management Dept., Credit Dept., etc.)

Soft skills:

The development of transversal skills is guaranteed by two educational choices that have always characterized the course, namely:
• The reliance of the examination of different management profiles of a particular bank at groups of students (with high number equal to three to four units) and this with reference first to the analysis of balance sheet data and then with an extension to further activity areas (using data obtainable from the notes to the account);
• The assignment to groups (differently composed, but with the same high number) of the study about the tools for measuring credit risk developed by the major international rating agencies or otherwise used by main international banks (and this only after the presentation by the teacher of modeling known in the literature).
In both cases the students will product some reports with a presentation at the end of the course (cumulatively and individually).
In this way are therefore developed on the one hand, the team working ability, the problem solving capacity, the literature search, etc., and, secondly, created the conditions for the growth of the ability to produce written material and its presentation, on a collective and individual basis.

Programma e contenuti dell'insegnamento/Course description

The course includes the following topics:
1. Introductory aspects (the functions performed by banks; relations with the domestic market operators; main problems in the management of banking);
2. The bank’s balance sheet: reclassification and key performance indicators calculation (group work);
3. The transversal functions. A) The relationship with the market: strategy analysis and marketing activities; B) The organizational structure: model analysis and impacts on efficiency and stability profiles;
4. The main areas of banking management (policy analysis and technical management of: saving collection, loans, securities investment, liquidity and treasury management - ALM);
5. The risk management activities (interest rate risk, liquidity risk, market risk, credit risk, operational risk). The obligations related to the introduction of the Risk Appetite Framework;
6. Capital management (quantification and allocation aspects) and the creation of shareholder value (measurement aspects).

Attività di apprendimento e metodi didattici previsti/ Teaching and Learning activities

The slides of the lectures (which will be released gradually for single block of contents dealt) cover the entire teaching program. They must be properly integrated with the contents provided by the textbook adopted: for this activity are indicated not only the relevant parts, but also additional articles or text that they can use for further details on the specific theme.

As stated above, participation in the course will include the development of a report concerning the bank’s balance sheet analysis, as well as specific details on the five models of international reference regarding the measurement of credit risk.

For each teaching block are foreseen exercises and case discussions: the latter sometimes in the presence of experts from the banking sector.

Modalità di verifica dell'apprendimento/Examination

The exam consists of an oral exam in which are presented the balance sheet elaboration (with reference to a particular bank ) and are discussed the performance achieved. Subsequently, the student must present its work with reference to the particular model of credit risk assessment assigned. In this regard it should be detailed: methodological references; quantitative applications; definition of PD, EL and the UL, both for single exposure, and at the portfolio level. It will follow some questions on further parts of the program dealt during the lessons.

Ideally half vote is assigned considering the result of the work presented (and delivered to the teacher prior to the final examination, for the relative appropriate checks), while the other half is depending on the mastery and depth of understanding of the issues included in the course program.

Testi / Bibliografia/Bibliography

Rose P., Hudgins S., Bank management & Financial Services, McGraw-Hill, ninth edition, 2013.

Strumenti a supporto della didattica/Further readings and support material

Slides can be downloaded from the website.

Additional teaching materials (freely downloadable) will be indicated at the beginning of each learning module.

Tesi di laurea/Thesis

Being one of the closing courses of the bachelor degree in Banking and Finance are accepted and quite often proposed (mainly during the lessons) thesis both with an experimental nature, and with more purely theoretical character.

Note/Remarks

The course was designed and implemented having as main reference the attending student. For this reason it is appropriate for students unable to attend classes to establish contact with the teacher to define content, supports and mode of study.Same forecast for Erasmus students.