Course ObjectiveThis course aims to deepen your knowledge on the business model of banks
and the role they have in the wider economy. After completion of the
course, you should:
- Have a thorough understanding of how banks make their money and the
- Understand the concept of Asset & Liability Management, including
- Be able to explain the role of the different regulators and outline
the most important new regulations that apply to banks and how these
will impact their business model.
- Be able to assess a credit request and be able to apply a credit risk
analysis for a corporate, form an opinion and decide on the request.
- Acquire an academic and critical attitude towards the financial system
in general and the role of banks in particular.
- Understand the basics of Financial Stability and monetary policy and
the impact on banks.
- Understand and explain the concept of money creation.
Course ContentThis course is a multidisciplinary course and deals with two important
aspects of bank management: the bank business model and business process
management within a bank. The first topic is about financial economics,
however we will also zoom into the broader function of banks in the
macro economy. The second is about business process management.
In more detail there are 4 building blocks:
The first building block is about the position of banks in the wider
economy. Both the academic frameworks regarding macro and financial
economy will be studied.
Risk Management is a key element of Bank management. Focus is on
balance sheet risk management and credit risk. The second building block
is about credit risk. The third block about balance sheet risk
Regarding credit risk, the loan portfolio is on average 50-75% of the
bank’s portfolio and determines for a large part the business model of a
bank. The focus in the second block will not only be on individual
credits, also techniques to manage the loan portfolio will be studied.
Balance sheet risk management consists out of capital, interest rate and
liquidity risk. The recent banking crisis shows the impact of
overlooking and underestimation of financial risks. Improving a banking
business model can be seen as an optimisation of a banking portfolio -
having various product-market combinations - in terms of (financial)
risk and return.
The fourth building block focus on the regulatory environment, banking
alternatives and new trends in the banking landscape like the block
chain technology and bitcoin. What is the future business model of banks
and is it still viable in the coming decade?
Teaching MethodsLectures and tutorials
Method of AssessmentCase (individual assessment) ; Case (group assignment) ; Exam
LiteratureBank Management & Financial Services (2012), By Peter S. Rose & Sylvia
C. Hudgins ; ISBN: 978-007-132642-1
Explanation CanvasThis course is for students that look for broadening their horizon.
This course is different in that sense that it is about applying the
concept rather than do the calculations.
|Language of Tuition||English|
|Faculty||School of Business and Economics|
|Course Coordinator||drs. T.A.J. de Jong|
|Examiner||drs. T.A.J. de Jong|
You need to register for this course yourself
Last-minute registration is available for this course.
|Teaching Methods||Seminar, Lecture|
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