II семестр

ECTS credits: 3, what includes: lectures (30 hours), practice and seminars (30 hours), individual work (20 hours), tasks for self - education, consultations and exam.

Course’s Aim:

Bank Management course begins by identifying and explaining the many instruments and markets banks use and operate in. It then provides an overview of the roles of banks in advanced financial systems and the value they add to economies. Balance sheet and profit and loss statements are analysed to understand banks' commercial and investment activities. Financial ratios from these statements are calculated to compare commercial banks' relative financial performance and areas for improvement. The course also covers designing of capital structure, factors affecting capital structure, and impact of capital structure on the value of the Bank. This course explains the mechanics of credit and investment portfolio management. It give emphasis on the types and measurement of risks, return, diversification of portfolios and the various asset pricing models and the investment decisions.

Key Topics:
Topic 1. Bank Management System
Topic 2. Organisation of the Banking activity and Strategic Management Topic 3. Bank Marketing
Topic 4. Bank Human Resources Management
Topic 5. Bank Capital Management
Topic 6. Management of the Bank credit and investment portfolios Topic 7. Assets and Liability Management at the Bank
Topic 8. Bank Liquidity and Profitability Management
Topic 9. Bank Risk Management
Topic 10. Internal Control as an Instrument of the Bank Management

Tasks of the Learning:

• studying the theoretical and practical principles of the Bank Management System;

• studying the types of organisational models to set-up the bank;

• acquaintance with international regulations on Bank capital management;

• mastering the methods of Liquidity, profitability and Risks assessment;

• developing comprehensive understanding the key models of Bank Assets and Liability Management;

• mastering strategies of the Bank Development in ensuring financial stability and safety;

• skill acquisition of estimation the regulatory indicators and prudential measures of banking

  activity;

• creation of a comprehensive understanding of inner control to evaluate the effectiveness of

  the Bank Management System.

  Foresee Results:

  After the Course Bank Risk Management has finished, the students will be able:

  • to Know: key definitions, methodology, tools, principles and functions of banking management; System of information provision of the bank management; understand the content of strategic, operational and financial planning; to evaluate the general strategy of the bank development; to be

guided in strategies and models of making managerial decisions on active and passive operations of the bank; principles and the main types of organisational structures in banking; features of management of shareholders capital, borrowed funds, active operations of banks; forms and methods of risk management in the activities of banks; peculiarities of management of the loan and investment portfolio; risk hedging instruments in the banking activities.

• to Understand: the goals, tasks and development programs of the bank depending on the market situation; essence, algorithm and main tasks of development marketing programs; features of management of communication policy at the Bank; types of Bank business models and decision- making processes taking into account Liquidity, Risk and Profitability indicators.

• to Apply: methodical approaches and tools of bank management in the process; methods for developing marketing plans and forecasts for the development bank services; carry out systematic analysis of profitability and liquidity of the bank; models for the assessing financial risks and capital adequacy to cover them; techniques for the analysing the loan and investment portfolio of the bank and the stability of the resource base, using the methods of financial analysis; methods of managing assets and liabilities, risks, liquidity and profitability of the bank for effective decision- making: evaluating tools to range the Bank financial status taking into account internal and external factors.

Methods of Control:

Assessment of knowledge, skills, and abilities of students in the course “Bank Management” is carried out on the basis of the results of current and final control. The current control is carried out during the semester of practical, seminars and is estimated by the sum of the points scored. Semester control is conducted in the form of an exam in the terms provided by the schedule of the educational process.

Scheme of accumulation of points in discipline, which students receive

Current test control - 30 points Total Final Control - 20 points Exam - 50 points

Students will be able to receive additional points in case of participation:

• in students’ scientific conferences -10 points;
• in the olympiads-10 points;
• Publication of the conference thesis or articles - 20 points;
• conducting research and presenting results: 20 points (in the case of prize-winning place the research work is estimated at 40 points);

Lecturer: Larysa Sloboda, PhD. in Economy, Associate professor at the Department of Finance, Banking and Insurance, Lviv Institute.