slide 1 - uacs skopje

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UNIVERSITY AMERICAN COLLEGE SKOPJE

Department: “School for busines administration”

Course: “PRINCIPLES OF BANKING”SEMESTER: SPRING 2007

Instructor: Tome Nenovski, Ph. D.

e-mail: [email protected]

Meeting hours: Thursday, 16:00 – 19:00 p.m.

12.04.23 05:08 Tome Nenovski, Ph.D. 2

1. REQUIRED TEXTS:

a) Rose S. Peter: “Commercial Bank Management", Mc Graw-Hill Irwin, New York, 2003, (available at UACS library);

b) Nenovski Tome:”Formiranje ceni na proizvodite i na uslugite na korporativnite banki”, “NAM pres” – Skopje, 2005, (available at UACS library);

c) Koch W. Timothy, S. Scott MacDonald: “Bank Management”, Thomson South-Western, USA, 2003 (available at UACS library);

d) Trpeski Ljube: “Pari i bankarstvo”, Economy Press, Skopje, 2003 (available at UACS library);


2. BIBLIOGRAPHY SUGESTED:

a) Theodore A. Platz, Jr.: “Banking”, Barron’s Business Library, New York, 1991 (available at UACS library);

b) Pance Jovanovski, Tome Nenovski: “Kreditna politika”, Evropski Univerzitet Skopje, 2006 (available at UACS library);

c) Tome Nenovski: “Paricen poredok i banki”, "Ragjanje na denarot“, "Ekonomsko ogledalo“ and “Tranziciski tunel” (available at UACS library);

d) UACS Library: Various books on the subject are available.


3. LEARNING OBJECTIVES

- To familiarize students with the basic aspects, elements and principles of banking and it’s meaning for the economy;

- To present main bank goals, various bank products and services, risks that banks are exposed to, and ways for estimating the successfulness of banks;

- To familiarize students with institutional structure of the banking system, bank role within the financial system of the country and with the needs and ways for controlling bank activity;

- To present Macedonian banking system;

- To motivate students to understand the basic banking elements and principles through presenting theoretical and practical course aspects.


- Presenting basic banking elements and principles;

- Presenting (if needed) additional information on particular banking principles and elements;

- Presenting practical aspects (case studies) on particular banking issues and problems;

- Real - life examples and case-studies examination and analyses.

4. WAY OF TEACHING


5. METHODS FOR COURSE PRESENTATION

- Review key themes through the system of Power Point (using video-projector);

- Table/Chart Presentation;

- Giving instructor notes to students for each lecture;

- Taking notes by the students.


6. REQUIREMENTS FROM STUDENTS FOR SUCCESSFUL TEACHING/ 1

- Attending classes regularly;

- Taking instructor notes;

- Participating in class discussions;

- Interactive contribution in classes;

- Preparing and following programs for home reading;

- Critical thinking on the issues presented in the classroom;


6. REQUIREMENTS FROM STUDENTS FOR SUCCESSFUL TEACHING/2

- Social and academic students behavior (no plagiarism, no cheating etc.);

- Expanding knowledge about banking by serious approach to other sciences which support Banking (Macroeconomics, Monetary Policy, Credit Policy, Public Finance, Finance Analyses..);

- Respecting the faculty rules and procedures.


7. EXAMINATION STRUCTURE/1

Examination consists of five parts:

a) EXAM

- Mid-term exam

- Final exam

Both parts of the exam will include analysis of some issues on particular course aspects.



b) ESSAY ASIGNMENT (PROJECT): Students will be asked to present in written form his/her opinion on some Banking related subject that is connected with the course program;

c) PRACTICAL ASSIGNMENT: Students will be asked to present orally his/her opinion on Banking related subject given by the instructor;

d) CLASS ATTENDANCE: Class absebce may have negative impact on student final grade and vice versa;

e) STUDENT PARTICIPATION in subject discussion.



The individual impact of the items mentioned above on the final grade will be:

- Mid - term exam 30%

- Final exam 35%

- Project 15%

- Practical assignment 10%

- Attendance 5%

- Participation 5%


7. EXAMINATION STRUCTURE/4Guideliness used for assigning grades:

Grade Percentage Quality points PerformanceA 96-100 4,00 ExcellentA- 90-95 3,67 ExcellentB+ 87-89 3,33 Very GoodB 83-86 3,00 GoodB- 80-82 2,67 GoodC+ 77-79 2,33 GoodC 73-76 2,00 SatisfactoryC- 70-72 1,67 SatisfactoryD+ 67-69 1,33 UnsatisfactoryD 63-66 1,00 UnsatisfactoryD- 60-62 0,67 UnsatisfactoryF 0-59 0,00 Fail



ATTENTION:C- or better is required to use a course ether as a prerequisite or as a major requirement.

I WISH YOU A SUCCESSFUL JOURNEY THROUGH THE ENDLESS

BANKING AREA.

Tome Nenovski, Ph. D.

12.04.23 05:08 14


Department: “School for business administration”

“PRINCIPLES OF BANKING”- COURSE PROGRAMME -

Instructor: Tome Nenovski, Ph. D.


1. Intruduction to banking

1.1. What is a bank?

1.2. Bank appearance and development

1.3. Bank roles and tasks

1.4. Bank functions

1.4.1. Deposit function

1.4.2. Credit function

1.4.3. Payment function

1.4.4. Financial-advisory function

1.4.5. Foreign trade function


2. The structure of banking system

2.1. Central bank

2.2. Commercial Banks

2.3. Bank Holding Companies

2.4. Investment Banks

2.5. Specialized banks

2.6. Saving houses

2.7. Credit unions

2.8. Deposit Insurance Agencies


3. Basic Banking Goals3.1. Maximizing Profit 3.2. Bank Value Increase3.3. Other banking goals

3.3.1. Efficiency3.3.2. Greater Market Intervention Power3.3.3. Reaching satisfactorily financial potential and optimal structure of bank placements;

3.3.4. Finding ways for absorbing risks;

3.3.5. Bank flexibility to market changes (economic, financial, etc.);

3.3.6. Retain clients confidence;

3.3.7. Retain stability; etc.


4. Bank products and services

4.1. Products and services that were offered by the banks trough the history

4.2. Clasical bank products

4.2.1. Deposits

4.2.2. Credits

4.2.3. Neutral (off-balance) activities

4.3. Contemporary bank products

4.4. Dealing with securities


5. Bank industry innovations5.1. Factors that create innovations (deregulation, competition,

information technology, globalization, economy of scope, economy of scale)

5.2. More important bank innovation

5.2.1. Securitization

5.2.2. Credit selling for collecting money

5.2.3. Guarantees stand by

5.2.4. Credit derivatives

5.2.5. Electron banking

5.2.6. Innovation in dealing with securities


6. Banking principles

6.1. Liquidity

6.2. Soundness and Efficiency

6.3. Lucrativeness/Profitability

6.4. Transparency


7. Banking risks7.1. Types of bank risks

7.1.1. Interest rate risk

7.3.2. Credit risk

7.3.3. Operational risk

7.3.4. Other risks

7.2. Managing bank risks

7.2.1. Financial derivatives (financial term agreements, options, swaps)


8. Pricing bank products and servicies

8.1. Pricing deposit products and services

8.2. Bank deposits structure

8.3. Functional deposit costs analyses

8.4. Methods for pricing deposit products and services

8.5. The influence of money market interest rates on pricing deposits

8.6. Basic determinants for pricing credits

8.7. Client profitability analyses

8.8. Methods for pricing credits


9. Basic principles for extending credits

9.1. Strategic bank planning

9.2. Target groups in crediting

9.3. Credit limitations

9.4. Credit policy procedures

9.5. Creating credit culture

9.6. Credit sector organization in a bank

9.7. Authorization for extending credits


10. Finacial analysis

10.1. Basic elements of financial analysis

10.2. Methods for client creditworthy estimation (“CAMPARI”, “SWOT”, “6Cs”, “PEST”)

10.3. Cash flow analysis

10.4. Client financial reports analysis

10.5. Analysing relative indicators for client financial capability

11. Analysing and estimating Bank performance

11.1. Analysing Bank Financial Statements

11.1.1. The Balance Sheet

11.1.2. The Income Statement

11.1.3. The Relationship between Balance Sheet and Income Statement

11.1.4. The other important bank financial statements

11.1.5. Methods for analysing bank financial statements

11.2. Analysing bank performance coefficients



12. Bank supervision (regulation)12.1. Reasons for Bank Supervision (Regulation)

12.1.1. The role of the regulatory institution

12.2. The Basel agreement (Basel standards I)

12.1.1. Capital Adequacy

12.2.2. Bank credit exposure

12.2.3. Risk-weighted credit clasiffication

12.2.4. Bank clasiffication in accordance their credit portfolio quality

12.3. The New Basel Agreement (Basel Standards II)


13. Banking system in the Republic of Macedonia

13.1. The development of the RM banking system

13.2. The structure of RM banking system

13.2.1. National Bank of the RM

13.2.2. Commercial banks

a) Founding commercial banks

b) Commercial banks goals

c) Bank financial activities

d) Managing and governing banks


13. Banking system in the Republic of Macedonia/2

13.2.3. Macedonian bank for supporting

development

13.2.4. Post-office bank

13.3.5. Saving houses

13.4.6. Deposit insurance fund

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Department: “School for business administration”

“PRINCIPLES OF BANKING”-Suggested themes for preparing essays

(projects) –

Instructor: Tome Nenovski, Ph. D


“PRINCIPLES OF BANKING”Suggested themes for preparing essays

(projects) –

1. Central bank: Legal foundation, role, governing, functions, instruments;

2. Commercial banks: Role and functions;

3. Deposit insurance agencies: Needs and functions;

4. The first bank goal: Maximizing the profit;

5. The second bank goal: Bank value increase;

6. Bank products and services (in general);

7. Bank deposits;



(projects)/28. Types of credits extended by the banks;

9. Types of off-balance bank activities;

10. Bank dealing with securities;

11. Bank industry innovations: needs, determinants, types;

12. Securitization;

13. Electron banking;

14. Bank principles;

15. Interest rate risk;



(projects)/3

16. Credit risk;

17. Operational risk;

18. Managing the bank risks;

19. Methods for pricing deposits;

20. Methods for pricing credits;

21. Credit limitations: legal and quantitative;

22. The method of “6Cs” financial analysis;

23. The method of “SWOT” financial analysis;



(projects)/4

24. Cash flow analysis;

25. Analyzing bank performance coefficients;

26. The relationship between Balance Sheet and Income Statement;

27. Basel I supervision standards;

28. Bank Capital adequacy;29. Bank Credit exposure; 30. Risk-weighted credit clasiffication;


(projects)/5

31. Basel II supervision standards;32. The structure of RM banking system;33. Procedures for bank foundation in RM;34. Macedonian Bank for supporting the

development;35. RM Agency for deposit insurance.

12.04.23 05:08 D-r Tome Nenovski 34

slide 1 - uacs skopje

Documents

uacs library c tome

uacs library b nenovski

uacs library d uacs

particular banking principles

banking macroeconomics

principles of banking

basic banking elements

particular banking issues