BANK MANAGEMENT

The unit is designed to provide participants with an appreciation of the major issues that arise in the management of a financial institution's assets and liabilities. The course is intended for those undergraduate students in the Finance and Banking major. It also helps the student obtain a thorough understanding of capital adequacy of banks, management of the capital structure, bank earnings, importance of attracting a deposit base, liquidity, investment portfolio composition, lending, audit, personnel, and the policies and procedures of each of these areas. In addition, the major focus in this unit is on understanding the management of the four main risks on a financial institution’s balance sheet: capital risk, liquidity risk, credit risk and interest rate risk. With interest rates now at historical lows and asset values, particularly shares, suffering major declines, financial institutions are now trying to protect their profitability by carefully managing these risks.