Subject Overview

A comprehensive study of banking institutions, regulation, customer relationships, deposits, lending, payments, risk, treasury, technology, governance and emerging banking models, integrating theory with operational and managerial practice.

Learning Goal

Students will be able to explain banking principles and terminology, perform core banking and credit analyses, evaluate risks and performance, apply legal and regulatory requirements, use contemporary digital tools responsibly, and make ethical, customer-focused banking decisions.

Syllabus

1. Foundations and Evolution of Banking

Learning Objective: Explain the meaning, functions, economic role and evolution of banks; distinguish commercial, cooperative, development, investment, central, universal, digital and shadow banking institutions; and understand financial intermediation, money creation and banking business models.

Category: foundation

2. Banking Systems, Central Banking and Monetary Policy

Learning Objective: Examine banking-system structures, central-bank functions, monetary-policy instruments, reserve requirements, liquidity facilities, deposit insurance and the transmission of policy decisions to credit, interest rates, inflation and economic activity.

Category: foundation

3. Banking Regulation and Prudential Supervision

Learning Objective: Understand licensing, supervisory approaches, Basel capital and liquidity standards, capital adequacy, leverage, asset classification, provisioning, recovery and resolution, regulatory reporting, compliance obligations and the rationale for prudential regulation.

Category: core

4. Banker–Customer Relationship and Banking Law

Learning Objective: Analyze the legal nature of banker–customer relationships, account mandates, rights and duties, confidentiality, lien, set-off, appropriation, garnishment, agency, nomination, succession, consumer rights and liabilities arising from banking transactions.

Category: core

5. Customer Onboarding, Deposit Products and Service Operations

Learning Objective: Apply customer identification, KYC, customer due diligence and account-opening procedures; compare current, savings, term and specialized deposits; calculate interest; and manage account operations, mandates, closures, dormant accounts and customer service.

Category: application

6. Payment Systems and Negotiable Instruments

Learning Objective: Explain cheques, drafts, bills of exchange, promissory notes, endorsements, crossing, collection and dishonour; evaluate card, electronic funds transfer, real-time payment, clearing and settlement systems; and manage payment fraud and operational controls.

Category: core

7. Principles of Bank Lending and Credit Policy

Learning Objective: Apply safety, liquidity, profitability, purpose, diversification and security principles; interpret credit policy and lending powers; distinguish fund-based and non-fund-based facilities; and structure retail, MSME, agricultural and corporate credit products.

Category: core

8. Credit Appraisal, Pricing and Decision-Making

Learning Objective: Conduct borrower assessment using character, capacity, capital, collateral and conditions; analyze financial statements, cash flows, ratios and working-capital needs; use credit scoring and rating models; price loans according to risk; and prepare defensible credit proposals.

Category: application

9. Security, Documentation and Credit Administration

Learning Objective: Evaluate collateral and guarantees; distinguish pledge, hypothecation, mortgage, assignment and lien; complete documentation, valuation, insurance, perfection and registration processes; monitor covenants and loan utilization; and identify early-warning signals.

Category: application

10. Problem Loans, Recovery and Insolvency

Learning Objective: Classify stressed and non-performing assets, estimate expected credit losses and provisions, undertake restructuring and resolution, apply recovery and enforcement mechanisms, assess insolvency options, and balance recovery objectives with fair customer treatment.

Category: application

11. Bank Risk Management and Internal Control

Learning Objective: Identify and measure credit, market, liquidity, interest-rate, operational, compliance, cyber, conduct and systemic risks; apply risk appetite, three-lines governance, stress testing, scenario analysis, business continuity, internal controls and audit frameworks.

Category: advanced

12. Asset–Liability Management, Treasury and International Banking

Learning Objective: Manage liquidity, maturity gaps and interest-rate exposure; understand investment portfolios, money and foreign-exchange markets, derivatives and transfer pricing; and apply trade-finance, correspondent-banking and foreign-exchange principles.

Category: advanced

13. Bank Financial Statements, Performance and Analytics

Learning Objective: Interpret bank balance sheets and income statements; calculate net interest margin, spread, cost-to-income, capital, liquidity, asset-quality and profitability indicators; apply CAMELS-style analysis, budgeting, benchmarking and data dashboards to managerial decisions.

Category: application

14. Digital Banking, FinTech, Data and Artificial Intelligence

Learning Objective: Evaluate core banking, mobile and internet banking, APIs, open banking, cloud, blockchain, digital identity and embedded finance; apply data analytics and AI to service, fraud and credit decisions; and address cybersecurity, privacy, explainability, bias and model risk.

Category: contemporary

15. Governance, Ethics, Sustainability and the Future of Banking

Learning Objective: Apply board governance, fiduciary responsibility, professional ethics, anti-money-laundering and sanctions controls, whistleblowing, customer protection and complaint redressal; assess ESG and climate risks, financial inclusion, green finance, digital currencies, platform banking and future workforce requirements.

Category: strategic