Standard

Updated: 08/28/06

RState Standard

*Institutionally Developed

*College: n/a

BAF 210 - Contemporary Bank Management

Course Description

Emphasizes the relevance of banks and the economy, bank regulations and policy, bank organizational structure, bank management, the financial institutions’ environment, bank deregulation, and asset/liability management.

Competency Areas	Hours
History of Commercial Bank Management	Class	5
Commercial Bank Management Development	D. Lab	0
Bank Management Concepts	P. Lab/O.B.I.	0
Major Banking Legislation	Credit	5
Federal Reserve Organization
Monetary and Fiscal Policy Tools
Management Strategies
Business Loan Pricing

Prerequisite:

BAF 100

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
HISTORY OF COMMERCIAL BANK MANAGEMENT		4	0	0
	Explain the development of banking and bank management.
COMMERCIAL BANK MANAGEMENT DEVELOPMENT		4	0	0
	Understand bank services, governmental policy, bank technology, and bank consolidation.
BANK MANAGEMENT CONCEPTS		10	0	0
	Describe the dual banking system, major currency acts, the impact of deregulation of banking, and the Federal Reserve System.
	Understand bank organization, unit banking and branch banking, bank holding companies, affiliated banks and correspondent bank, bankers’ banks, and point-of-sale banks.
MAJOR BANKING LEGISLATION		5	0	0
	Understand the financial statements of banks, evaluating bank performance, determining interest rates, and controlling a bank’s interest-sensitive gap.
FEDERAL RESERVE ORGANIZATION		4	0	0
	Describe the concept of rates of return on stocks, assets, and equity, earnings per share of stock, net interest margin, and profit margins.
MONETARY AND FISCAL POLICY TOOLS		5	0	0
	Understand the composition of interest rates, yield curves and their signals, duration concepts, interest rate risk, and portfolio management.
MANAGEMENT STRATEGIES		15	0	0
	Describe off-balance sheet financing, securitization, participating loans, loan sales, stand-by credit letters, and credit swaps.
	Understand the investment function, management of reserves, deposit services, and non-deposit investment products.
	Understand bank liquidity, supply and demand, asset liquidity needs and management, money position management and the composition of assets
	Understand management of the banks’ equity capital position, measuring the size of bank capital, raising capital, and bank lending policies.
BUSINESS LOAN PRICING		3	0	0
	Understand how to identify fraud.
	Understand proper business ethics, bank customer service, and management principles.
	Pricing of deposit related services, using marginal cost to set interest rates, and deposit pricing.

Suggested Resources

Rose, Peter S. Commercial Bank Management. 4^th Edition. Irwin McGraw-Hill.