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University of Jordan Jordan University Business School (JUBS)

Course Syllabus

1 JUBS-March 2017

1. Department Name: Department of Finance 2. Program Name: Bachelor of Finance 3. Program Code 03 4. Course Code and Title: 1603333 Bank Management 5. Course credits: 3 Hours 6. Pre-requisites: 1603211 Principles of Managerial Finance 7. Course Instructor/

Coordinator Name and Email

Dr. Ghada Tayem [email protected]

8. Course web-page: - 9. Academic year: 2016/17 10. Semester: First Second ✓ 1st Summer 2nd Summer

11. Textbook(s) - Bank Management & Financial Services, Rose and Hudgins, latest edition (9

th, International

Edition), McGraw-Hill.

12. References: - The Economics of Money, Banking and Financial Markets, Frederic S. Mishkin, Latest

Edition (14th

, Global Edition); Pearson.

13. Other resources - The website of the Central Bank of Jordan. - Lecture notes available from the e-learning website. 14. Course description

Bank Management is an undergraduate course focusing on the study of banks. The primary

objective of this course is to help students obtain a better understanding the operations of banks.

Therefore, this course focuses on explaining banks’ financial statements and how they reflect

the uniqueness of banks operations. Then it emphasizes how banks obtain their competitive

advantage and how it can be measured through financial statements. Then it discusses in more

details how banks manage their assets and liabilities. In particular the course thoroughly

explains banks’ deposits, and loans. The course ends by discussing the key issues of liquidity,

reserve and capital management.


Course Syllabus

2 JUBS-March 2017

15. Course Intended Learning Outcomes:

Mapping to PILOs CILOs 1 2 3 4 5 6

1. Learn about the many roles financial service-providers play in the economy today. ✓

2. Understand the content, structure and purpose of bank financial statements.

✓

3. Apply analytical tools to analyze a bank’s financial statements. ✓

4. Explore the reasons why financial institutions often face heavy demands for liquidity.

✓

5. Explain the different types of deposits and their pricing.

✓ ✓

6. Learn why capital; particularly equity capital, is so important for financial institutions.

✓ ✓

7. Learn the steps in a lending process, regulations in the industry, and the importance of lending policies for banks and other lending institutions.

✓ ✓

8. Understand how information from bank financial statements can be used as tools to reveal how well their banks are performing.

✓

16. Course evaluation: Assessment Type

Details/ Explanation of Assessment in relation to CILOs

Frequency Weight Date(s)

Second Exam

The second exam examines the CILOs #4 and #5

1 15% Mid April-2017

Midterms The midterm exam examines the CILOs #1, #2, #3, #8

1 30% 22-March-2017

Participation

asking questions, or contributing to discussions

n/a 5% -

Projects/ Case Studies

n/a 0 - -

Final The final should measure all the CILOs

1 50% May-2017

Total 100%


Course Syllabus

3 JUBS-March 2017

17. Description of Topics Covered

Topic Title

Description

An overview of Banks and the Financial Services Sector (Chapter 1)

Understand what a bank is. Contrast and compare the difference between banks and

other financial institutions and the financial services offered by banks.

List old and new financial services offered by banks. Analyze key trends affecting all financial service firms.

The Financial Statements of Banks and Some of Their Closest Competitors (Chapter 5); Problems: 1, 2, 3, 4, 5

Understand the construction of the two main financial statements of banks: Income statement and balance sheet.

Identify the components of items in the two main financial statements

Understand the complexities of off-balance sheet items.

Measuring and Evaluating the Performance of Banks and Their Principal Competitors (Chapter 6); Problems: 4, 5, 6

Learn how to compute ratios evaluating a bank’s performance and the risks the bank is subject to.

Analyze the performance of banks. Analyze the risks facing banks.

Liquidity and Reserve Management: Strategies and Policies (Chapter 11); Problems: 1, 2, 3, 12, 13, 14

Understand the sources of and demands for and supply of liquidity.

Analyze why banks face liquidity problems and the need fpr managing liquidity.

Estimate liquidity needs. Compute legal reserves and understand regulations

concerning required reserves.

Managing and pricing deposit services (Chapter 12); Problems:2, 3, 4, 6

List and discuss the different types of deposit accounts. Understand the changing mix of deposits and deposit costs. Learn different methods used to price deposits.

The Management of Capital (Chapter 15); Problems: 1, 2, 4;

Understand the many tasks of capital. List the types of capital in use. Recognize the importance of capital adequacy and Basel

Accords.

Lending Policies and Procedures (Chapter 16)

Understand the different types of loans offered by banks. Appreciate how bank lending solves the information

asymmetry problems. Recognize the importance of lending regulations.

Lending to Business Firms and Pricing

Learn the methods used to price business loans. Understand the strengths and weaknesses of each method.


Course Syllabus

4 JUBS-March 2017

Business Loans (Chapter 17); Problems:7, 8 Consumer Loans, Credit Cards, and Real Estate Lending (Chapter 18); Problems: 13, 14 ,16

Learn the methods used to price consumer loans. Understand the strengths and weaknesses of each method.

18. Course Weekly Breakdown:

Week Date Topics covered CILOs Teaching Method

Assessment

1 29 Jan – 2 Feb

Introduction

2 5 – 9 Feb An overview of Banks and the Financial Services Sector

No. 1 Discussions, Real-life Examples and illustrations.

3 12-16 Feb The Financial Statements of Banks and Some of Their Closest Competitors

No. 2 & No. 8

Discussions, Real-life Examples and illustrations.

Participation and Exam

4 19-23 Feb The Financial Statements of Banks and Some of Their Closest Competitors

No. 2 & No. 8



5 26 Feb – 2 March

Measuring and Evaluating the Performance of Banks and Their Principal Competitors

No. 3 & No. 8



6 5-9 March Measuring and Evaluating the Performance of Banks and Their Principal Competitors

No. 3 & No. 8



7 12-16 March

Liquidity and Reserve Management: Strategies and Policies



8 19-23 March

Liquidity and Reserve Management: Strategies and Policies



9 26-30 March

Managing and pricing deposit services




Course Syllabus

5 JUBS-March 2017

10 2-6 April Managing and pricing deposit services



11 9-13 April The Management of Capital



12 16-20 April The Management of Capital



13 23-27 April Lending Policies and Procedures



14 30 April - 4 May

Lending to Business Firms and Pricing Business Loans Consumer Loans, Credit Cards, and Real Estate Lending



19. Others:

Description

Attendance policies:

Students are not allowed to miss more than 15% of classes during the semester. Failing to meet this requirement will be dealt with according to the university disciplinary rules.

Absences from exams and handing in assignments on time:

- The exams are paper-based and exams time will be assigned in advance of exams time.

- In advance preparation is required for this course.

- Students will be required to submit 3 assignments.

- No make-up exam will be held if students failed in providing approved absence form signed by the dean or the assistant dean for students affairs.


Course Syllabus

6 JUBS-March 2017

Health and safety procedures:

N/A

Honesty policy regarding cheating, plagiarism, misbehavior:

- Any inappropriate behaviour will not be tolerated and students will face consequences based on the University disciplinary rules.

- Students are kindly requested to keep their mobiles on silent mode during the lecture. Any disturbance caused by mobile phones will not be tolerated and mobile owner will be requested to leave the class.

Course Coordinator: Dr. Ghada Tayem

Head of Department: Dr. Bashar Abu Khalaf

Head of curriculum committee:

Dr. Samer Dahiyat

Dean: Pro. Rifat Shannak

Approved by the Program Coordinator on:

Copy to:

Head of Department

Assistant dean for Development and Quality Assurance

Course Portfolio

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