MPF_EARB Bank Management

Faculty of Economics and Administration
Spring 2025
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
In-person direct teaching
Teacher(s)
Oleg Deev, Ph.D. (lecturer)
prof. Ing. Eva Horvátová, CSc. (lecturer)
Oleg Deev, Ph.D. (seminar tutor)
Guaranteed by
prof. Ing. Eva Horvátová, CSc.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Tue 8:00–9:50 P403, except Tue 1. 4.
  • Timetable of Seminar Groups:
MPF_EARB/01: Tue 10:00–11:50 VT105, except Tue 1. 4., O. Deev
MPF_EARB/02: Tue 12:00–13:50 VT105, except Tue 1. 4., O. Deev
Prerequisites
Courses: Banking, Financial Management, Security Analysis, Financial Mathematics, Statistics, Mathematics and Econometrics
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 55 student(s).
Current registration and enrolment status: enrolled: 43/55, only registered: 0/55
fields of study / plans the course is directly associated with
Course objectives
The main objective of the course is to acquaint students with an understanding of commercial bank operations and management. The course is aimed at understanding the behavior of banks, their lending and investment activities, sources of funding and basic principles of risk management. The course is also addressing some of the major trends in domestic and international banking in recent times using the basic tools of economic analysis. Particular attention is given to asset liability and liquidity management and bank's off-balance sheet activities.
Learning outcomes
After successful completion of the course, students should be able to:
- describe and analyze various bank performance measures;
- understand the basic accounting operations in banks and their effects on bank's balance sheet;
- discuss the main types of risk that banks face and explain ways to manage these risks;
- assess bank investment activities, methods of portfolio optimization and immunization;
- understand tools of asset-liability and liquidity management;
- evaluate the effective use of capital and capital adequacy requirements.
Syllabus
  • 1. Bank Operations. Functions of Banks. Asset Transformation. Bank Products in the Bank Balance Sheet. Banking Risks.
  • 2. Types of Banking. Bank Business Models. Current Trends in Banking.
  • 3. Bank Performance Analysis. Bank Balance Sheet and Income Statement. Return on Equity Model in Banking. Risk-adjusted Performance Analysis. Loan Valuation.
  • 4. Bank Funding Sources. Costs of Deposits. Costs of Debt and Equity. Funding Sources and Banking Risks.
  • 5. Bank Capital Adequacy. Risk Capital Requirements Approaches. Bank Regulatory Capital.
  • 6. Bank Liquidity Management. Bank Liquidity Needs and Acquisition. Liquidity Measures. Stress Testing.
  • 7. Bank Asset Liability Management. Asset Liability Gaps. Interest Rate Gap and Earnings Sensitivity Analysis.
  • 8. Duration Gap and Economic Value of Equity Analysis.
  • 9. Interest Rate Risk Management. Interest Rate Swaps.
  • 10. Credit Risk Management. Governance Framework for Credit Risk Management. Regulatory Framework for Credit Risk Management.
  • 11. Credit Risk Modeling. Validation and Backtesting.
  • 12. Bank Investment Management. Yield Curve Strategies. Active and Passive Maturity Strategies. Foreign Exchange Activities.
Literature
    required literature
  • CHOUDHRY, Moorad, Polina BARDAEVA, Natasha BOURNE, Michael EICHHORN, Beata LUBINSKA, Engelbert PLASSMANN, Periklis THIVAIOS and Chris WESTCOTT. The principles of banking. Second edition. Hoboken: Wiley, 2023, li, 811. ISBN 9781119755647. info
  • KOCH, Timothy W. and Steven Scott MACDONALD. Bank management. 8e. Boston: Cengage Learning, 2015, xx, 778. ISBN 9781133494683. info
    recommended literature
  • BESSIS, Joël. Risk management in banking. Fourth edition. Chichester: Wiley, 2015, x, 364. ISBN 9781118660218. info
Teaching methods
Lectures, seminars, class discussions, group projects, guest lectures by bank professionals
Assessment methods
For the successful completion of the course students are required::
a) to actively participate in lectures and seminars (the ability to answer questions and solve problems);
b) to submit an individual report on the specified topic (under guidelines) – for presentation and discussion during seminars;
c) written exam and oral discussion.
Final grade consists of: the evaluation of the report (up to 5 grade points), active participation in seminars (up to 6 points) and lectures (up to 6 points) and the results of the final exam (up to 20 points).

Rating scale:
A: 92 – 100 % (28 and more points),
B: 84 – 91 % (26 – 27 points),
C: 76 – 83 % (24 – 25 points),
D: 68 – 75 % (21 – 23 points),
E: 60 – 67 % (18 – 20 points),
F: less than 60 % (less than 18 points)

Students in this course are expected to adhere to the Masaryk University’s high standards of integrity as spelled out in the Disciplinary Code for Students and Directive N.3/2008. Anyone who cheats on exams, or who submits essay that is not their own, will be subject to the penalties set forth in the Code. Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.
Náhradní absolvování
In case of study abroad, contact course teacher for further instructions to discuss the possibilities to fulfill course activities and requirements.
Language of instruction
English
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
Credit evaluation note: k = 1.
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2018, Spring 2019, Spring 2020, Spring 2021, Spring 2022, Spring 2023, Spring 2024.
  • Enrolment Statistics (recent)
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