Management of Commercial Banking

Module-I: Functions, Regulation, Financial Statements and Performance

Week 1 :• Functions and Forms of Commercial Banking • Regulations of Commercial Banking • Banks’ Financial Statements
Week 2 : • Profitability Measures • Efficiency Measures • Stability Measures • Liquidity Measures • Loan Quality Measures
Module-II: Valuation of Securities and Commercial Bank Risk

Week 3 : • Pricing of Bank Stocks • Pricing of Fixed Income Securities of Commercial Banks Week 4 :
• Risk management process • Risk types: Credit risk, Market risk, Operational risk, Liquidity risk, Solvency risk, Legal risk • Risk measures
Module-III: Asset-Liability Management (ALM): Management of Interest Rate Risk

Week 5 :
• Static Gap Analysis • Earnings sensitivity analysis • Duration Gap analysis • Economic value of equity sensitivity analysis Week 6 :
• Use of Futures, Options, Swaps and Other Hedging Tools in ALM • Risk management using Asset-Backed Securities and Credit Derivatives

Module-IV: Management of Lending Activities of Commercial Banks

Week 7 : • Lending Functions • Loan PolicyWeek 8 : • Loan Pricing • Credit Evaluation Process for Industrial and Retail Loans
Module-V: Managing Investment Portfolios and Liquidity of Commercial Banks
Week 9 : • Investment Alternatives • Evaluation of Investment Risk • Investment StrategyWeek 10 : • Estimation of Liquidity Needs • Funds Management of Liquidity • Optimum Bank Liquidity
Module-VI: Management of Liabilities, Capital and Off-Balance Sheet Activities of Commercial Banks

Week 11 :
• Management of Deposits and other liabilities • Role of Bank Capital • Capital Adequacy • Capital StandardsWeek 12 : • Financial Guarantee • Derivatives • Trade Finance • Foreign Exchange