Faculty of Business Administration

University of Chittagong
BBA Program
6 th
Semester to 8 th
Semester: 2015-2016, 2016-2017, 2017-2018, 2018-2019 and 2019-2020
(Department of Banking & Insurance Specialized Course)
Date:26/11/2018
Specialized Course
6th Semester
BI 306 - Central Banking
BI 307 - Corporate & Retail Banking
BI 308 - Financial Market and Institutions
BI 309 - Management of Life Insurance
BI 310 - Corporate Finance
7th Semester
BI 401 - Islamic Banking & Insurance
BI 402 - Management of General Insurance
BI 403 - Commercial Bank Management
BI 404 - Credit Management
BI 405 - Investment Banking

8th Semester
BI 406 - International Financial Management
BI 407 - Bank and Insurance Regulations
BI 408 - Financial Statement Analysis
BI 409 - Research Methodology
BI 410 - Strategic Management
BI 411 - Internship

1
 Course Code: BI-306
Course Title: Central Banking
Marks: 100 Credits: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)
Course Objective:

The objectives of the course are to explore the whole issues of central banking like objectives,
functions, autonomy, regulatory aspects of central banking, and various approaches of bank
supervision. The course is expected to increase the level of understanding of the students relating to the
role of central banking in combating bank failure and financial crisis. A good part of the syllabus is
devoted on central banking in Bangladesh. That will help the students to think about the environment
of central banking practices in our country.

Marks : 75

Course Contents:

Central Banking
Central Bank in the Financial System-Evolution- Objectives, Characteristics and Functions of Central
Banks-Features of Modern Central Banks- Autonomy of Central Banks and Its Implications for the
Macroeconomic Performance-Separation between Supervisory and Monetary Authorities.

Central Banking and the Conduct of Monetary Policy

Money Supply Process-Control of the Monetary Base- Multiple Deposit Creation- Money Multiplier-
Tools, Goals, Strategy, and Tactics of Monetary Policy-Monetary Policy Framework in Bangladesh

Bank Supervision and Examination

Theories, Objectives and Agencies of Bank Examination - Reasons for Bank Regulation- Methods of
Bank Examination-Onsite and Off-site - CAMELS Rating System- Deposit Insurance System- Risk
Based Supervision and Its Features - Basel Core Principles for Bank Supervision

Internal Control Mechanism

Internal Control and Compliance- Meaning, Objectives and Importance – Internal Audit and Inspection,
Scope and Function of Internal Audit, Audit Programs and Procedures- Common Type of Irregularities
and Examination-External Audit and Inspection-Statutory and Govt. Commercial Audit- Preparation,
Submission and Handling of Audit Reports- Risk Based Internal Audit (RBIA) in Banks- Bangladesh
Bank Guidelines on ICC

Financial Stability and Central Banking

Bank Failure – Definitions, Reasons for Bark Failure, Determinants of Bank Failure, Financial Crisis,
Financial Stability and the Role of the Central Bank – Financial Stability Reporting

2
Central Banking in Bangladesh
Bangladesh Bank and Its Objectives and Functions- The Bangladesh Bank Order, 1972, Relevant
Sections of The Bank Company Act-1991 and The Financial Institutions Act-1993 - Prudential
Regulations of Bangladesh Bank

Basic Text:

1. ThammarakMoenjak (2014), Central Banking, Theory and Practice in Sustaining Monetary and
Financial Stability. John Wiley & Sons Singapore Pte. Ltd.

References:

1. Mishkin, F. S. The Economics of Money, Banking and Financial Markets. Pearson, Boston.
2. Dr. A. R. Khan – Bank Fund Management
3. Peter S. Rose (2007). Commercial Bank Management, 5th Edition, McGraw-Hill.
4. Sheng, A. Bank Supervision: Principles and Practice. EDI Working Paper.
5. Roles and objectives of modern central banks-BIS Publications on the Governance of Central
Banks
6. Bangladesh Bank Policies and Guidelines.
7. Relevant Research Papers on Central Banking.

3
 Course Code: BI-307
Course Title: Corporate and Retail Banking
Marks: 100; Credit: 3.00 hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course objective: The objective of the course is to provide the students fundamental knowledge
regarding retail and corporate banking practice. The students will receive an overview about the
services products that banks are offering for corporate and retail customers.

Marks : 75
Course Contents:
1.Corporate Banking: Meaning and Importance,Various services(Cash management, Debt
management, Factoring and forfeiting, Trusteeship, custodial services, Business advisory services,
Offshore services, Trade services, Forex management)

2.Corporate Deposit and Financing:Importance of institutional deposits vis a vis retail deposits,
Various types of corporate deposit accounts, Corporate finance(working capital finance, fund and
non- fund based limits & export-import finance), Corporate debt restructuring, Investment banking.

3.Corporate Banking Services Merchant Banking, Corporate advisory services( Capital

restructuring, Project advisory services, Private equity and venture capital, Loan syndication),
project & infrastructure finance( Definition, characteristics of project finance, Market
analysis(International competitiveness & SWOT analysis, Assessing the project cost, means of
financing project, Estimation of project cash flows, Use of free and equity cash flow valuation for
assessing project), Financial analysis(Break-Even analysis, Decision Tree, Scenario Analysis,
Sensitivity analysis), Risk mitigation methodologies in project(securitization, project planning,
Network techniques for project implementation, Disbursement-supervision & follow up by lender,
infrastructure financing cash flow deal agreement with parties involved, monitoring and follow up
of project.

4.Retail Banking History and definition, role within the bank operations, applicability of retailing
concepts, distinction between retail and corporate banking.

5.Retail products: Overview, Customer Requirement, Product development process, Liabilities and
asset products. Approval process of retail loans, credit scoring, Important asset products (home,
Auto/ vehicle loan, personal loan, educational loans, credit/debit cards, credit vs debit cards,
remittances, fund transfer).

6.Marketing/ Selling of retail products, MIS and accounting retail strategies: Delivery
channels, Customer relationship management, Technology for retail banking, trends in
retailing(insurance, Demat Accounts, Online and mobile banking, Wealth management, reverse
mortgage, growth of E-Banking, cross selling opportunities.

7.Recovery of retail loan / non-performing asset: Defaults, Rescheduling, Recovery process, BB

guidelines.

4
8.Micro Finance Micro credit, Grameen credit, Role of micro finance, SHG, Role of NGO,
microcredit lending models, Micro credit loan delivery models.

Basic Text:
1)Merchant Banking and financial Services Dr. K. Ravichandran
2)Fundamentals of Retail Banking O.P. Agarwal
3) Projects planning, Analysis, selection. Financing, Implementation and review Prasanna Chandra

Reference Books:
4) Retail Banking Technology Michel Violano, Shimon Craig
5) Future of Retail Banking Joseph Divanna
6) Online Materials.

5
 Course Code: BI-308
Course Title: Financial Market and Institutions
Marks: 100 Credit: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objectives:
This course is intended to contribute toward the understanding of the students with regard to the role of
financial institutions and markets within the financial system. After completion of the course students
are supposed to learn the following subject matters:
 Underlying ideas relating to financial asset, financial institutions and markets.
 Composition and functions of bank and non-bank financing institutions.
 Role of insurance companies, investment companies and pension funds.
 Theories relating to the term structure of interest rates.
 Role of central bank toward the implementation of monetary policy.

Marks : 75

Course Contents:

1. Introduction: Financial Asset, Types of Financial Asset, Debt versus Equity Instruments, Properties
and Pricing of Financial Asset, Financial Markets, Globalization of Financial Markets, Derivative
Markets and The Role of Government in Financial Markets.

2. Depository Institutions: Concept; Asset/Liability Problems of Depository Institutions; Activities

and Characteristics of Commercial Bank, Savings and Loan Association, Savings Bank and Credit
Union; Central Bank and the Creation of Money; and Monetary Policy.

3. Non-Depository Financial Institutions: Activities and Characteristics of Insurance Companies,

Investment Companies and Pension Funds.

4. Level and Structure of Interest Rate: Theories of Interest Rates, The Determinants of the
Structure of Interest Rates, The Yield Curve, The Term Structure of Interest Rates, Forward Rates and
Theories of Term Structure of Interest Rates: The Pure Expectations Theory, The Liquidity Preference
Theory and The Preferred Habitat Theory.

5. Organization and Structure of Markets: Primary Markets and the Underwriting of Securities,
Secondary Markets.

6. Markets for Government Debt: Treasury and Agency Securities Markets, Municipal Securities
Markets.

7. Markets for Corporate Securities: Common and Preferred Stock Markets, Corporate Bond
Markets.

6
8. Mortgage and Securitized Asset Markets: The Mortgage Market, Mortgage-Backed Securities
Market and Asset-Backed Securities Market.

9. Market for Foreign Exchange Rate Risk Control Instrument: Foreign Exchange Rates, Spot
Market and Instruments for Hedging Foreign Exchange Risk.

Text Book:
1. Foundations of Financial Markets and Institutions – Frank J. Fabozzi, Franco Modigliani,
Frank J. Jones and Michael G. Ferri.

Reference Books:
1. Financial Markets, Instruments and Institutions - Antony Santomero and David Babble.
2. Financial Market and Institutions - Jeff Madura.

7
 Course Code: BI- 309
Course Title: Management of Life Insurance
Marks: 100 Credits: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objective:
Management of life insurance is a specialized course for the students of BBA 6th semester, department
of Banking & Insurance of University of Chittagong. The course has been designed to provide
fundamental concept regarding the management of life insurance so that the students can acquaint the
basic knowledge of the life insurance management, its organization form, company formation and
administration. This course will also facilitate the students to know the most important aspects of any
life insurer; say marketing management, financial management, underwriting function, pricing
methods of different life insurance products. This course also offers the concept of actuarial principles
and their application for making mortality statistics and life insurance management under the context
of Bangladesh.

Course contents:

Marks : 75

1. Introduction to Life Insurance Organization & Management:

Organizational form of life insurer, Organization structure of insurance companies, Life insurance
company formation, Office organization and Administration, Corporate reorganization-Mutualization
& Demutualization, Planning and control cycle-Strategic planning, Tactical Planning, Value based
Planning, Performance monitoring & Control, Trends in life insurer organizations-Network
organization, Creating work group & team, Strategic Alliance.

2. Marketing Life Insurance:

Developing marketing program, Managing Distribution Channel-Marketing Intermediary, Financial
Institutions, Direct Response, International Dimensions of distribution channel-Life insurance
distribution worldwide, The role of Multinational Insurer, Product development process, Present
product orientation-Term life policy, Whole Life policy, Endowment, Annuity & Takaful, Future of
life insurance Marketing.

3. Life Insurance Underwriting:

Concept Of Underwriting, Need For Underwriting, Guiding Principles Of Underwriting, Factors
Affecting Insurability-Life And Health Insurance, Sources Of Information Concerning Insurance Risk,
Methods Of Risk Classification, Special Underwriting Practices.

4. Life Insurance Actuarial Principles:

Concept Of Actuary Science, Measurement Of Risk, The Use Of Probability To Forecast Future
Events -Law Of Larger Number, Mortality Statistics, Mortality Table, Underlying Principles: Interest,
Assumptions Underlying Rate Computations, Interaction Of Probability, Mortality And Interest
Concepts.

8
5. Pricing Life Insurance Products:
Net Single Premium-Term life, whole life, Annuity, Endowment. Net Level Premium, Concept of
Gross premium, General Considerations in Deriving Gross Premiums, Developing tentative gross
premium structure, Testing the gross premium structure-Asset Share Models, probability Measure,
Selection of Most probable Assumptions, Asset Share Calculation,

6. Cash Values, Reserve and Surplus management of Life Insurer:

Reserve-Definition, Features, Types, Calculation Method, Actuarial Assumptions Regarding Reserve;
Surrender Value or Cash Values- Meaning of Surrender Claim, Circumstances for paying Surrender
Claim, Justification for paying Less; Concept of Surplus-Sources of Gain, Distribution of Surplus.

7. Life Insurer Financial Management-Part 1

Life Insurer as Financial Intermediary, Financial Management Fundamentals-Goal of the firm, Agency
problem, Life Insurer Risk Management-Actuarial Risk, Systematic Risk, Credit Risk, Liquidity Risk,
Risks in providing Insurance Service, actuarial Classification, Financial Classification, Reconciliation
of financial and actuarial classification of risk; Capital Management-Capital and the risk of insolvency,
Evaluating Capital Needs, Capital Planning Process;

8. Life Insurer Financial Management-Part 2

Managing Life Insurance Cash Flow-Segmentation by product line, Liability Cash Flow, Asset Cash
Flow, Interest Rate Sensitivity Analysis, Application of cash flow Analysis; Financing Life Insurance
Companies; Investment Management-Establishing Investment policy, Investment Risk, Investment
Asset Class, Investment Portfolio Construction; Financial Reporting;

9. Life Insurance Management: Bangladesh Perspective

Marketing Management of Bangladeshi Life Insurer; Underwriting Process; Application of Actuarial
Knowledge in Life Insurance Companies; Financial management of Bangladeshi Life Insurer;
Regulations & Acts Governing Insurance |Business in Bangladesh.

Basic Texts:
1. Kenneth Black Jr. & Harold D Skipper Jr., Life and Health Insurance-13th Ed., Pearson
Education, India, 2012

Reference Books:
1. Harrington Neihus-Risk Management & Insurance (13th Ed).
2. George E Rejda Risk Management & Insurance (10th Ed).
3. Publications of Jiban Bima Corporation.

9
 Course Code: BI- 310
Course Title: Corporate Finance
Marks: 100; Credit: 3.00 hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objectives:
In this course you will study the main issues in modern corporate finance. The subject
‘corporate finance’ is a well-established discipline, which is concerned with corporations large
enough to have issued shares that are ‘quoted’ on a stock market. The aim of the course is to
provide students with a broad based understanding of the principles and techniques of
Corporate Finance and applying them to the main decisions faced by a financial manager in a
modern corporate firm.

Course Contents:
Marks : 75

Learning Outcomes: When you have completed your study of this course you will be able to:
 describe modern principles of corporate finance and evaluate their validity
 rationalize corporate finance decisions in the light of agency problems and conflict of
interest among corporations’ stakeholders
 analyze firms’ investment decisions
 discuss firms’ choice of capital structure and its implications for the value of the firm
 examine and discuss the key issues related to dividend policy and their implications for
the value of the firm
 critically assess the reasons behind mergers and acquisitions and their welfare
implications
 analyze the corporate decision making implication from the behavioral perspective
 to understand and apply the tools that are used to corporate valuation.

Unit-1: Overview of Corporate Finance

 The foundation of Corporate Finance
 The Objective in Decision Making
 Long Term Financial planning and growth
 Value and Price : An Introduction
 The Basics of Risk
 Live Case Study

Unit-2: Analyzing Long-Term Investment

 Risk measurement and Hurdle rates in practice
 Estimating Earnings and Cash Flows on Projects (Review)
 Investment Decision Rules – A critical evaluation
 Investment Analysis with Inflation and Exchange Rate Risk
 Project Interactions, Side Benefits, and Side Costs
 Probabilistic approaches to investment analysis
 Live Case Study
10
Unit-3: Analyzing The Capital Structure
 The Financing Mix : Tradeoffs on Theory
 The Optimal Financing Mix
 The Financing Mix and Choices
 Live Case Study

Unit-4: The Payout Policy

 Analyzing cash Returned to stock Holders
 Beyond cash Dividends: Buyback, Spinoffs, and Divestitures
 Live case Study

Unit-5: Valuation
 Valuation : Principles and practice
 Value Enhancement : Tools and techniques
 Live case Study

Unit-6: Special Topics

 Mergers and Acquisition
 Behavioral Finance- Implications for Financial Manager
 Live case Study

Text Book
1. Applied Corporate Finance: A User’s Manual by Aswath Damodaran , Third Edition, John Wiley &
Sons Inc. (2011)

Basic Texts:
1. Corporate Finance: Theory and practices by Aswath Damodaran , Second Edition, John Wiley &
Sons Inc.
2. Fundamentals of Corporate Finance by Ross, Westerfield & Jordon, 9th Edition, McGraw Hill
Education.
3 .Principles of Corporate Finance by Brealey, Myers & Allen, 10th Edition, McGraw Hill Education.

Reference Books:
Web Resources:
1. http://people.stern.nyu.edu/adamodar/New_Home_Page/ACF3E/appldCF3E.htm
2. http://people.stern.nyu.edu/adamodar/
3. http://aswathdamodaran.blogspot.com/

11
 Course Code: BI 401
Course Title: Islamic Banking & Insurance
Marks: 100; Credit: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objectives:
This course is intended to contribute toward the understanding of the students with regard to the
functioning of Islamic financial institutions. After completion of the course students are supposed to
learn the following issues:
 Underlying ideas relating to the principles of Islamic financial system.
 Various financing and investment products of Islamic banks and Islamic financial institutions.
 Distinction between conventional and Islamic insurance companies.
 Instruments of Islamic securities market.
 Role of supervisory board in Islamic finance.

Marks : 75

Course Contents:

1. Islamic Financial Principles: The Prohibition of Riba, Implications of Non-Interest based Finance,
The Prohibition of Gharar, Participatory Finance and Risk and Reward Sharing, Partnership
Contracts and Guarantees.
2. Legal Systems and Shari’ahLaw: Shari’ah Law;Laws that convert entire Financial System to being
Shari’ah Compliant;Distinct Liability and Asset Structure of Islamic Banks; Liquidity Management
Issues;Regulation of dedicated Islamic Banks and Windows;Sources of Shari’ah: the Quran, Sunnah
and Fiqh Muamalat; and Composition and responsibilities of Shari’ah Board.
3. Islamic Deposit Facilities: Various Deposits in Islamic Banks; The Characteristics of Qard Hasan,
Wadia and Amanah Deposits; Wakala Treasury Deposits for Fixed Time Periods; Mudarabah
Investment Deposits; and Restricted and Unrestricted Investment Deposits.
4. Islamic Investment Methods: Murabahah, Mudaraba, Musharakah, Salam Contracts involving
Advance Payments and Parallel Salam, Islamic Leasing (Ijara) and Hire Purchase, and Project
Finance using Istisna and Parallel Istisna.
5. Islamic Fund Management: Islamic Fund Management Advantages for Shari’ah Compliance,
Categories of Islamic Funds, Screening Methodologies, Sector Screening for Acceptable Business
Activity, The Dow Jones Islamic Market Indices and Lessons from the Ethical Investment Industry.
6. Sukuk Securities: Rules for the Issuance of Sukuk; Sukuk Bills, Bonds and Notes; Sukuk
Characteristics, Choices and Concerns; and Sukuk Experiences in the Gulf and South East Asia.
7. Takaful Insurance:Takaful versus Conventional Insurance, Mutual Insurance Principles, Family
Takaful Insurance, Risk management by Takaful Companies, and Re-Takaful Operations and
Underwriting.

12
8. The Islamic Financial Infrastructure: Islamic Development Bank (IDB), Islamic Financial
Services Board (IFSB), Accounting and Auditing Organisation for Islamic Financial Institutions
(AAOIFI), International Islamic Financial Market (IIFM), International Islamic Liquidity
Management Corporation (IILM), and Central Shari’ah Board for Islamic Banks in Bangladesh.

Text Books:

1. An Introduction to Islamic Finance: Theory and Practice – Zamir Iqbal and Abbas Mirakhor.
2. Islamic Capitalism and Finance – Murat Cizakca.

13
 Course Code: BI 402
Course Title: Management of General Insurance
Marks: 100; Credits: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objective:
Insurance business has emerged as one of the prominent areas of financial
services during recent times. Insurance in general and non life insurance in particular performs
remarkable function by insuring the insurable public and private property and thereto minimizing
significant business and operational risk for smooth operation of business. Nowadays in Bangladesh
insurance sector is most developing business area. In that very relation ‘Management of Non Life
Insurance is a specialized course for the students of BBA 7th semester, department of Banking &
Insurance of University of Chittagong. The course has been designed to provide the fundamental
concept regarding the management of non life insurance so that the students can acquaint the practical
and theoretical and knowledge of the general insurance management. The course will provide the basic
contents of non life insurance management including- organization form and management structure,
different non life insurance products and their pricing mechanics, marketing management, financial
management, underwriting and claim management.

Course contents:
Marks : 75
1. Introduction to Non life Insurance:
Concept of insurance, Concept of general insurance, Subject Matter of general insurance, Historical
background, Nature of insurance contract: Basic principles, organizational form and structure,
Functional departments, Management style and approach.
.
2. Management of Fire insurance:
Fundamental concept-Principles, Subject matter. Underwriting Management; formulation and
Classification of Fire Insurance Policies-policy draft, qualities of a good draft, Policy Conditions-Rate
fixation -Fire Claims and settlement management.

3. Management of Marine Insurance:

Fundamental concept-Basic Principles, Subject Matter; classification in detail, Marine Insurance
Policy management; Policy formulation, classification and policy conditions , Marine Losses,
Managing product pricing, Underwriting, Claims; required documents and their Settlement
Management.

4. Management of Motor Insurance:

Fundamental concept-Basic Principles, Subject Matter; major classification, motor Insurance Policy
management; Policy formulation, classification and policy conditions , Managing product pricing,
Underwriting and Claim Management.

14
5.Burglary Insurance: Fundamental Concept, Policy types and origin, Subject matters: Risk Covered
by Burglary insurance, Application of Insurance principles, Burglary Insurance Service, , Underwriting:
proposal and premium determination, Claim Settlement.

6. Fidelity guarantees insurance: Fundamental concept, Application of Insurance Principles, Subject

matters: Risk Covered by Fidelity guarantees insurance, Policy types, Policy conditions, Underwriting
and claim settlement.

7.Miscellaneous Accident Insurance: Banker’s Indemnity Insurance, Jeweler’s Block Insurance,

Television Insurance, Multi-Peril Insurance, Special Contingencies Insurance, Plate Glass Insurance,
Blood Stock Insurance, Sports Insurance, Neon Sign Insurance, Crop Insurance, Cattle Insurance,
Other contemporary general insurance.

8.General Insurance management Bangladesh Perspective:

Basic Texts:
1. Panda G and Mahajan M., Principles and Practice of Insurance-third edition, Kallyani
Publishers, India-2013
2. Ganguly A., Insurance Management-Latest edition, New Age International Publisher-2010

Reference Books:
1. Harrington Neihus-Risk Management & Insurance (13th Ed).
2. George E Rejda Risk Management & Insurance (10th Ed).
3. Mishra M N.,(Latest edition) Principles and Practice of Insurance
4. F. Godwin, Principles and Practices of Fire Insurance.
5. Templeman, Principles and Practice of Marine Insurance.
6. Magee, General Insurance.
7. GOB, Insurance Act, 1938.
8. GOB, Laws Relevant of Insurance, Rules & Regulations Issued From Time to Time.
9. Risk Management and Insurance By- Trieschmamm- Hoyd Sommer, Publisher- Thomsom
South West 12th Edition.
10. Publications of Sadharan Bima Corporation.
11. Shahiduddin Ahmed, Insurance Business in Bangladesh.

15
 Course Code: BI-403
Course Title: Commercial Bank Management
Marks: 100; Credits: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)
Course Objectives:
This course is intended to contribute toward the understanding of the students with regard to the role of
commercial banks in the economy. After completion of the course students are supposed to learn the
following subject matters:
 Underlying ideas relating to commercial banking
 Composition and functions of a commercial bank
 Role of commercial banks in Bangladesh
 Functions of different divisions and departments of a commercial bank
 Challenges of banking in dynamic environment
 Contemporary issues in banking and performance indicators of banking business

Marks : 75

Introduction: history of commercial banking, concept of commercial banking, guidelines to establish

banking company in Bangladesh, govt. policy & regulations, organizational structure of commercial
banks in Bangladesh, Banking Companies Act 1991.

Financial Statements of Bank: key performance indicators of a commercial bank, interpretation of

financial statements (Balance Sheet, Income Statement, Retained Earnings Statement, Cash Flow
Statement), financial ratios, notes to financial statements.

Management of Interest Rate Risk: concept of risk, relevant risk to a banker, interest rate risk,
management of asset-liability gap, management of asset-liability’s duration gap, simulation, sensitivity
analysis, balance sheet & off-balance sheet techniques of asset-liability management, financial
derivatives to hedge interest rate risk.

Liquidity & Reserve Management: Demand & supply of liquidity, why banks face liquidity crisis,
strategies for liquidity managers (asset, liability & balanced liquidity management), Estimating
liquidity needs (sources & uses of funds, structure of fund approach, liquidity indicator approach,
signals from marketplace), reserve requirements, factors influencing money position & reserves.

Management of Capital: Bank capital, components of bank capital, core & supplementary capital,
Basel accord і, Basel accord іі, Basel accord ііі, capital adequacy, categories of bank based on capital
adequacy, roles played by bank capital.

Management of Deposit& Non-Deposit Liabilities: Bank deposit, different sources of bank deposit,
factors effecting bank deposit combination & deposit pricing, different pricing strategies by banks,
sources of non-deposit liabilities, rationale for non-deposit liabilities, deposit management in highly
competitive market, lifeline banking.

16
Management of Credit: Evolution of credit system, credit cycle, different types of credit products,
continuous vs. term lending, short term vs. long term loans, loan pricing, customer profitability
analysis, loan pricing, determinants of creditworthiness, credit policy, credit regulations, steps in
lending process, credit monitoring and reviews.

Management of Investment: Rationale for investment, investment policies, where and how to invest,
investment circle, determinants of investment, investable securities, money and capital market
instruments, returns from investment, pricing investment and managing funds.

Commercial Banking in Bangladesh: Contemporary issues in banking, performance of the

commercial banks in Bangladesh, banking in dynamic economic environment, banking in international
environment, mergers and takeovers.

Text Book:
1. Bank Management & Financial Services by Peter S. Rose & Sylvia C. Hudgins

Reference Book:
1. Bank Management by Timothy W. Koch, S. Scott MacDonald
2. Bank Management: A Fund Emphasis by Dr. A R Khan
3. Commercial Bank Management by Peter S. Rose
4. Commercial Banking: The Management of Risk by Benton E. Gup& James W. Kolari

17
 Course Code: BI 404
Course Title: Credit Management
Marks: 100; Credits: 3.00
(Written: 75, Internal Evaluation: 20 and Viva: 05)
Course Objectives:
The worldwide credit crunch, which started in 2006 with sub-prime mortgages in the United States and
the deteriorating credit culture of Bangladesh have highlighted the fundamental importance of the
credit decision. While the credit decision is relatively straightforward in principle (a lender must
decide whether to give credit or refuse credit to a potential client), in practice it involves experience,
judgment and a range of analytic and evaluative techniques that are designed to determine the
likelihood that money will be repaid or, equally, that the money will be lost by the credit not being able
to repay. This course covers the essential credit assessment processes that involve credit risk
identification, evaluation and subsequent management. It largely adopts a process- and techniques-
based approach to credit risk assessment that covers a range of judgmental or experience-based
methods and more formal or analytical models that have been developed to support the ultimate
decision. The course also covers how credit losses may be mitigated once they have been incurred and
money recovered if a credit defaults on its obligation.

Course Contents:
Marks : 75
Credit Management in Banks
Credit –Credit Vs Investment–Credit Contract–Basic Requirements for Lending, Basic Functional
Credit Operational Process, Principles of Lending – Challenges of Lending

Bank’s Credit Policy

Credit Operational Manual, Credit Policy, Government Regulation of Banks (prudential guidelines) –
Institutional Structure – Need for Statutory Reserves – Cash Reserve Ratio (CRR) – Statutory
Liquidity Ratio (SLR)

Types of Lending and Borrower

Banker-Customer Relationship, Borrower Selection, and Different types credit Facilities provided by
the Financial Institutions, Types of Borrower

Credit Analysis
Credit Risk, Credit Risk Management, Credit Risk Assessment, Credit Risk Assessment Techniques,
Business Risk Assessment, Credit Appraisal

Financial Statement Analysis

Background of Credit Risk, Grading, Credit Risk Grading, Functions of Credit Risk Grading, Uses of
Credit Risk Grading

CRG Manual of Bangladesh Bank

Types of financial statement– Financial statement analysis– Objectives of financial statement analysis–
Steps in financial statement analysis– Ratio Analysis & Limitation of financial statement analysis and
Cash Flow Analysis.

18
Security and Documentation of Bank Credit
Security – Creation of Security – Documentation against Credit facilities – Types of Documents –
Importance of Documentation – Steps in Documentation.

Credit Risk Monitoring and Control

Loan Monitoring– Importance of monitoring– Methods of Monitoring– Loan Review-- Early Warning
System

Bank Loan Classification, Provisioning and Loan Rescheduling

Loan Classification, Provisioning and Rescheduling- BRPD relevant Circulars in these matter.

Off-Balance sheet Financing in Banking and Credit Derivatives

Loan Securitization - Loan Sales - Standby Letter of Credit- Credit Derivatives- Prospects of Credit
Derivatives in the Banking Industry of Bangladesh

Recovery Management:
Non-Performing Loan – Detection of Non-Performing Loan – Causes and cost of Non-Performing
Loan – Warming Signals – Management of Non-Performing Loan.

Corporate Governance and Credit Discipline

Corporate Governance in Financial Institutions - Corporate Governance Vs Credit Discipline -
Corporate Governance Vs Productivity and Profitability

The BASEL Framework and Credit Risk

BASEL Framework in Banks and its Objectives, Capital Adequacy and BASEL Framework, Lending
Policy Vs BASEL- III

Contemporary and Comparative Credit Management Issues

BOOKS & REFERENCES RECOMMENDED:

2. Ken Brown, Peter Moles (2014). Credit Risk Management. Edinburgh Business School, Heriot-
Watt University Edinburgh.
3. JoEtta Colquitt (2008), Credit Risk Management- How to Avoid Lending Disasters and Maximize
Earnings. Third Edition. McGraw-Hill.
4. Duffie, D., & Singleton, K. J. (2012). Credit Risk: Pricing, Measurement, and Management: Pricing,
Measurement, and Management. Princeton University Press.
5. MA Matin. Credit Operations and Risk Management in Commercial Bank
6. Ron Wells (2004), Global Credit Management - An Executive Summary, John Wiley & Sons Ltd
7. Research Papers on Credit Risk Management related Theories and Practices.

19
 Course Code: BI-405
Course Title: Investment Banking
Marks: 100; Credit: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Objectives:

The course is designed to orient the students with the concepts, tools, techniques and management
issues related to Investment and Merchant Banking. Through this course, the students are expected to
learn the process of delivering merchant banking services efficiently.

Marks : 75

Course Contents:

Introduction to Investment Banking

Investment Banking, Evolution of Investment Banking, Difference between Investment Banking and
Merchant Banking, Business Portfolio of Investment Banks, Recent Trend in Investment Banking,
Regulatory Framework for Investment and Merchant Banking in Bangladesh.

Overview of Primary Market

Primary Equity Market- Fundamental Concepts on Equity Securities, Valuation Methodologies for
Shares, Equity Issues in Primary Market, Primary Market Issuers, Primary Market Investors, Primary
Market Intermediaries, Primary Debt Market- Fundamental Concepts on Debt Securities, Types of
Debt Instruments.

Overview of Capital Market

Financial Market and Capital Market, Historical Evolution of Capital Market, Historical Evolution of
Bangladesh Capital Market, Stock Exchanges, Institutional and Regulatory Framework of Capital
Market, Capital Market Instruments, Intermediaries, Infrastructure, Regulators, Listing, Clearing and
Settlement of Transactions in the Capital Market, Security Market Indicators.

Issue Management and Underwriting

Public Offering through Prospectus-Pre-Issue Activities-Origination, Due Diligence Investigation of
Prospectus, Coordination, Marketing, Underwriting, Filing Prospectusto Bangladesh Securities and
Exchange Commission, Post-IssueActivities-Allotment of Share, Refunds, Listing,Right Issue, Repeat
Public Offer, Public Offers of Debt Securities, Exit Offers, Private Placement of Equity and Debt
Securities.

Security Selection, Valuation and Portfolio Management

Overview and Theory of Valuation; Valuation of Bond - Yield, YTM; Valuation of Common Stock-
Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT); and Valuation of Preferred
20
Stock. Investment Decision Process – Fundamental Analysis – Macro-Economic Analysis – Industry
Analysis – Company Analysis and Stock Selection; Technical Analysis.Portfolio Theory; Portfolio
Risk and Return; Portfolio Management Strategies–Active and Passive, Portfolio Performance
Evaluation- Sharpe, Treynor and Jensen Measures

Introduction to Derivative Markets and Securities Advisory Services

Business Advisory Services, Project Advisory Services, Financial Restructuring Advisory Services,
Mergers and Acquisition related Advisory Services, Advisory Services to the Government.

Lease Financing, Factoring, and Venture Financing

Lease Financing- Concepts, Types, Benefits and Difference with Buy -Factoring – Domestic and
International: Concept, Types and Mechanism; Forfaiting, Venture Financing – Concept, Characteristics,
Process, Structure and Exit Route.

Books Recommended:

1. Subramanyam, P.G. Investment Banking-An Odyssey in High Finance.Tata-McGraw Hill, New

Delhi.
2. Machiraju, H. R. Merchant Banking. New Age International Pvt. Ltd. New Delhi.
3. Reilly, F. K. and K. C. Brown. Investment Analysis and Portfolio Management. Thomson South-
Western, Singapore.
4. John F. Marshall & M. E. Ellis.Investment Banking & Brokerage: The New Rules of The Game.
5. Fischer, D.E. and R. J. Jordan. Security Analysis and Portfolio Management. Prentice Hall of
India, New Delhi.
6. Selected Rules and Ordinances issued by BSEC

21
 Course Code: BI-409
Course Title: Research Methodology
Marks: 100; Credit: 3.00 Hours
Course Objectives:
The Objectives of the courses are to acquaint the students with the concept methodology & steps of
research work along with statistical tools to be used for research work. This will be helpful to
researchers both in the academic area & practical field.
Course Contents:

Marks : 75

1. Introduction to Research Methodology: Meaning, Objectives, and significance of Research in

business. Types of Research, Research Approaches, Research Methods Vs Research Methodology.

2. Research Process: Stages, Concept of Variables, Stages with Forward and Backward linkages,
Hypothesis, Models, Ethical Issues in Research.

3. Research Problem: Formulation of Research Problems, Selecting Research Problems, Necessity of

Defining Research Problems-Induction and Deduction and Combining inductive and Deductive
reasoning, Techniques involved in defining Research Problems.

4. Research Design: Need for Research Design, Features of Good Research Design, Important
Concepts, Relevant to Research Design, Types of Research Design.

5. Sampling Design: Concepts of Population and Sample, Parameter and Statistic, Implications of
Sample Design, Types of Sampling, Methods of Sampling, Criteria for selecting a Sampling
Procedure” Concept of Standard Error, Point and Interval Estimation of Population Parameters (Mean
and Variance), Sample Size Determination, Confidence Level.

6. Data Collection Procedure: Methods of Collecting Primary and Secondary Data, Designing
Questionnaire, Pilot Survey, Business Case Study.

7. Data Measurement: Measurement in Research, Measurement Scales, Types of Scales, Sources of

Error in Measurement, Test of Sound Measurement, Techniques of Developing Measurement Tools,
Scaling, Important Scaling Techniques, Scale Construction Techniques.

8. Analysis of Data: Multivariate Data Analysis: Multiple Correlation and Regression Analysis-Partial
Correlation and Regression, Multi-Colinearity: Diagnosis and Remedy Process, Example of Business
Problems.
Review of Testing Procedures of Parametric Hypotheses, Testing Non-Parametric Hypotheses: Chi-
Square Test, Rank Test, Manu-Whitny U. Test, Kolmogrov-Smirnov Z. Test, Kruskal-Wallis H Test,
Example of Business Problems.
Analysis of Variance (ANOVA), Multivariate Analysis of Variance(MANOVA). Example of Business
Problems.

22
9. Interpretation and Report Writing: Meaning and Significance of Report Writing, Different Steps
involved in Report Writing, Layout of the Research Report, Types of Reports, Oral Presentation
Techniques of Reports, Footnoting, Bibliography, Referencing and Citation”

10. Issues in Research Methodology in Business Research: Conditions Favouring Research in

Business, Application of Behavioural Science.

Text Book:
2. Research Methodology-Methods & Techniques by C.R. Kothari.
3. Wiltuam G Zikmund, Business Research Methods, 8th Edition.
Reference Books:
3. Donald R Cooper and S. Schindler, Business Research Methods, 8th Edition.
4. Uma, Sekaran, Research Methods for Business; A Skill Building Approach, 4th Edition.
5. Saunders, Lews & Thornhill, Research Methods for Business Students, 4th Edition.

23
 Course Code: BI 410
Course Title: Strategic Management
Marks: 100; Credit: 3.00 Hours
(Written: 75, Internal Evaluation: 20 and Viva: 05)

Course Introduction
Strategic Management is the integrative capstone course for business/management graduating students,
designed to develop skills for strategic thinking and analysis, leadership, communication, teamwork
and cross functional integration. The format of this course will include both strategic management
theory and case analysis. In this course, students will be exposed to the various concepts and
techniques of strategic management and strategic management process that focuses on how firms
analyze, formulate and implement strategies.

This course requires the students to integrate theory and concepts from other functional areas, such as
marketing, finance, production, human resources, economics, statistics, etc. The major responsibility of
students in this course is to make objective strategic decisions and to justify them through oral and
written communication. For this purpose, strategic management cases will be analyzed in this course.
Strategic management cases typically describe the external conditions and internal situation facing a
firm and presents sufficient information to develop, analyze and choose alternative strategies.

Chapter Outlines:

Marks : 75

Chapter 1: Strategic Management – Introduction: What is Strategic Management? Why is Strategic

management Important? The Strategic Management Process, The Role of Corporate Governance and
Stakeholder Management, The Strategic Management Perspective and Coherence in Strategic
Direction.

Chapter 2: Analyzing the External Environment of the Firm: Creating the Environmentally Aware
Organization. SWOT Analysis, and The General Environment, The Competitive Environment, and
Strategic Group.

Chapter 3: Assessing the Internal Environment of the Firm: Value Chain Analysis, Resource Based
View of the Firm and Evaluating Firm Performance.

Chapter 4 (Hill & Jones): Functional Level Strategy: Achieving Superior Efficiency and Materials
Management, Just in Time, Efficiency, Achieving Superior Quality and Achieving Superior Innovation,
Achieving Superior Responsiveness to Customers.

Chapter 5: Business Level Strategy: Types of Competitive Advantage and Sustainability, Industry
Life Cycle Stages: Strategic Implications.

24
Chapter 6: Corporate Level Strategy: Making Diversification Work: An Overview, Related
Diversification, Unrelated Diversification and The Means to Achieve Diversification

Chapter 7: International Strategy: The Global Economy: A Brief Overview, Factors Affecting a
Nation’s Competitiveness, International Expansion, Achieving Competitive Advantage in Global
Markets and Entry Modes of International Expansion

Chapter 8: Strategic Control and Corporate Governance: Ensuring Informational Control and
Attaining Behavioral Control, The Role of Corporate Governance.

Chapter 9: Creating Effective Organizational Designs: Traditional Forms of Organizational Structure,

Linking Strategic Reward and Evaluation Systems to Business Level and Corporate Level Strategies,
Boundaryless Organizational Designs.

Chapter 10: Strategic Leadership: Leadership: Three Independent Activities, Emotional Intelligence:
A Key leadership Trait, Developing a Learning Organization, Creating an Ethical Organization.

Chapter 11: Analyzing Strategic Management Cases: Why analyze management cases? How to
conduct a case analysis, How to get the most from case analysis, Using conflict-inducing decision
making techniques in case analysis, Following the analysis-decision action cycle in case analysis

Text:
1. Strategic Management - Creating Competitive Advantages, 6th Edition, Gregory G. Dess,
G. T. Lumpkin, Alan B. Eisner, Gerry McNamara, and Bongjin Kim. McGraw Hill
Education (India) Private Limited, 2012.

References:
1. Arthur A. Thompson, A. J Strickland III and John E. Gamble, Crafting and Executing
Strategy – The Quest for Competitive Advantage, McGraw-Hill Irwin.
2. John A. Pearce II and Richard B. Robinson, Jr. Strategic Management, Eleventh Edition,
McGraw Hill.
3. Hill & Jones (??????): Strategic Management

25