TON DUC THANG UNIVERSITY

FACULTY OF FINANCE AND BANKING

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HoChiMinh City, …. December 2015

UNDERGRADUATE DEGREE PROGRAM IN FINANCE AND BANKINGCOMMERCIAL BANKING

SYLLABUS

1. Course Name: COMMERCIAL BANKING 22. Course Code: 3. No of credits: 3 (3.0)4. Degree level: Bachelor in Finance and Banking Code:5. Time allocation:

- Theory: 45 teaching hours.- Self – study: 90 hours.

6. Pre-requisite: Prerequisites: English 1, Commercial Banking 1Prohibitions: English 2, Money and Capital Market

7. Description: Following the subject Commercial Banking 1, this subject examines organization structure of banks as well as how banks and other financial firms are organized to serve their customers. In addition, the subject also focuses on analyzing the balance sheets and income statements of commercial banks. Moreover, This subject will introduce an overview of banking management techniques such as: risk management, liquidity and reserve management, capital management, etc. Finally, the subject covers relevant prudent regulations for commercial banks in order to manage these risks.

8. Main objectives: - Knowledge: Provide students knowledge about organization structure and main risks of commercial banks as well as the hedging tools for against these risk.- Skills: After completing this course, students will understand:

Key factors which reshaped commercial banks in economic integration period Traditional and modern business activities of banks Organization structures of banks The balance sheets and income statements of banks and other financial firms Define and explain assets, liability and fund management Market rate and interest rate risk, the goals of interest rate hedging The use of derivatives in managing commercial bank’s risks. Liquidity management strategy and estimating liquidity needs

Capital and Risk Exposures Applications of Basel 1 & Basel 2 Planning to Meet Capital Needs

- Thinking: It is expected that students perceive the role and purpose of science, knowledge

through their studying and researching activities.

- Attitude and behavior: It is expected that students comply with the principles, ethics in the

scientific research.

9. Brief course contentChapter 1: The Organization and Structure of Banking and the Financial Services IndustryChapter 2: The Financial Statements of Banks and Theirs Principal CompetiorChapter 3: Risk ManagementChapter 4: Liquidity and Reserve ManagementChapter 5: Management of Capital

10. Outcome of the courseResults

1 Understand

2 Remember

3 Apply

4 Analyze

5 Judge

6 Offer: none

11. Student tasksThe highest professional standards are expected of all students who study this course. The collective class reputation and the value of the program’s experience hinges on this. This includes:

Being on-time and in your seat when class starts Staying until the end of class. Should students have to leave class early, please have

the courtesy of letting the instructor know before the beginning of the period and leave quietly so as not to disturb the other members of the class.

Being constructive to the learning environment. E-mail and the Internet access are not allowed during lectures. Mobile phones (both smart and inept) and other electronic devices need to be set to silent during class at all times.

Being “present” in the class and focused on class material. The lectures will sometimes cover extra material (e.g., exercises, discussions) not contained in lecture notes.

Students are responsible for everything covered or assigned in class. If students miss a class, it is entirely their responsibility to determine what they have missed including any administrative announcements lecturer may have made.

Collect themselves the lending/borrowing document for expanded study. Coming prepared to contribute to the class. Communication with the lecturer.

Think about this class as though it was a job, and professionalism in class is a good discipline to prepare you for the real world.

12. Teaching materialsMain textbook/ resources: Bank management and financial services / Peter S. Rose, Sylvia C. Hudgins

Other resources: [1] Quản trị ngân hàng thương mại = Commercial bank management / Peter S. Rose ; Nguyễn Huy Hoàng, Nguyễn Đức Hiển, Phạm Long dịch [2] PGS.TS. Nguyễn Đăng Dờn. Nghiệp vụ ngân hàng thương mại. NXB Đại học Quốc gia, 2013.[3] PGS.TS. Nguyễn Đăng Dờn. Hệ thống bài tập và bài giải nghiệp vụ ngân hàng thương mại. NXB Đại học Quốc gia, 2013.[4] TS. Nguyễn Minh Kiều. Nghiệp vụ ngân hàng thương mại. Nhà xuất bản Thống kê, 2013[5] TS. Nguyễn Minh Kiều. Bài tập và bài giải nghiệp vụ ngân hàng thương mại. NXB LĐXH, 2013.[6] Law on the State Bank of Vietnam, 2010, State Bank of Vietnam[7] Law on Credit Institutions, 2010, State Bank of Vietnam[8] Circular No. 36/2014/TT-NHNN dated November 20, 2014 of the State Bank of Vietnam

13. Assessment scheme

On-going assessment: - Class Performance1: 20%- Class Performance2: 20%- 01 mid-term test: 20% - Final Exam: 40% Completion Criteria: Final Result >=5

14. Scoring scale: 10 points

15. ScheduleSession

ContentCategory Self-study Outcomes Requirements

Student's tasksT E P D

Chapter 1: The Organization and Structure of Banking and the Financial Services Industry1.1. The Organization and Structure of the Commercial Banking Industry1.2. Internal Organization of Banking Firm1.3. The Array of Organization Structures and Types in the Banking Industry1.4. An Alternative Type of Banking Organization Available as the 21st Century Opened: Financial Holding Companies (FHCs)1.5. Mergers and Acquisitions Reshaping the Structure and Organization of the Financial Services Sector1.6. Financial Firms Goals: Their Impact on Operating Cost, Efficiency, and Performance

[1] - [4] At class: None

Preparation

Reading:

- [1] Reading: Chapter 3

(P65-P96)

- [1] Insights and Issues: The structure and organization of banks in Europe and Asia (chapter 3)

After class

Reading and Assignments:

- [7] Reading: Law on Credit Institutions, 2010, State Bank of Vietnam- The questions and

problems at the end of

the chapter.

Chapter 2: The Financial Statements of Banks and Theirs Principal Competitors2.1. An Overview of Balance Sheet and Income Statements2.2. The Balance Sheet 2.3. Components of the Income Statement 2.4. The Financial Statements of Leading Nonbank Financial Firms: A comparison to Bank Statements2.5. An Overview of Key Features of Financial Statements and Their Consequences

[1] - [4] At class: None

Preparation

Reading:

- [1] Reading: Chapter 5

(P129-P164)

After class

Reading and Assignments:

- [1] Assignment: First look at your BHC’s financial statements (chapter 5)

- [1] Assignment: Evaluation of your bank’s profitability (chapter 6)

- The questions and problems at the end of the chapter.

Chapter 3: Risk Management3.1. Asset-Liability Management and Duration Techniques3.2. Using Duration to Hedge against Interest Rate Risk3.3. Financial Futures, Options, Swaps, and

[1] - [4] At class: None

Preparation

Reading:

- [1] Reading: Chapter

7-8-9 (P217-P319)

Other Hedging Tools3.4. Asset-Backed Securities, Loan Sales, Credit Standbys, and Credit Derivatives

After class

Reading and Assignments:

- [1] Assignment: Your bank’s interest rate sensitivity (chapter 7)

- The questions and problems at the end of the chapter.

Chapter 4: Liquidity and Reserve Management4.1. The Demand for and Supply of Liquidity4.2. Why Financial Firms Often Face Significant Liquidity Problems4.3. Strategies for Liquidity Managers4.4. Estimating Liquidity Needs4.5. Legal Reserves and Money Position Management4.6. Factors in Choosing among the Different Sources of Reserves4.7. Central Bank Reserve Requirements around the Globe

[1] - [4] At class: None

Preparation

Reading:

- [1] Reading: Chapter

11 (P359-P395)

- [6] Reading: Law on the State Bank of Vietnam, 2010, State Bank of Vietnam

After class

Reading and Assignments:

- The questions and problems at the end of

the chapter.

Chapter 5: Management of Capital5.1. Capital and Risk 5.2. Types of Capital in Use5.3. One of the Great Issues in the History of Banking: How much Capital Is Really Needed?5.4. The Basel Agreement on International Capital Standards: A Continuing Historic Contract among Leading Nations5.5. Planning to Meet Capital Needs

[1] - [4] At class: None

Preparation

Reading:

- [1] Reading: Chapter

15 (P485-P518)

- [8] Reading: Circular No. 36/2014/TT-NHNN dated November 20, 2014 of the State Bank of Vietnam

After class

Reading and Assignments:

- [1] Assignment: Your bank’s capital: the cushion for losses and funds for growth (chapter 15)

- The questions and problems at the end of the chapter.

16. Description of Evaluation

Evaluation Category

Weight Duration Type of questionsNumber of questions

Scope of knowledge and skill of questions

Process point 1 20%In class (depend on lecturer)

Random Exercises/Answer the question during class + Multiple choice questions

At least 2 exercises/many questions/class

Integration of studied knowledge and skills of chapters covered so far

Process point 2 20%In class (depend on lecturer)

Random Exercises+ Multiple choice questions

At least 1 exercises + 1 team project

Integration of studied knowledge and skills of chapters covered so far

Mid-term test 20% 45 minutesRandom Exercises+ Multiple choice questions

At least 20 questions and 2 exercises

Integration of studied knowledge and skills of chapters covered so far

Final exam 40% 60 minutesRandom Exercises+ Multiple choice questions

At least 40 questions and 2 exercises

Integration of studied knowledge and skills of chapters covered so far

Giảng viên biên soạn Chịu trách nhiệm khoa học

Trưởng Khoa

NCS.

Giảng viên đọc lại, phản biện Kiểm soát so sánh mẫu

Trưởng phòng đào tạo

NCS.

Kiểm soát chuyên môn

Trưởng Bộ môn

Phê chuẩn của Chủ tịch hội đồng khoa học và đào tạo

Ngày tháng năm

NCS. GS. LÊ VINH DANH