Summary of information on each course/module

1.

Name of Course/Module

2.

Course Code

Bank Management
BFN2044

3.
4.

Status of Subject
MQF Level/Stage

Core
6

Note :
Certificate MQF Level 3
Diploma MQF Level 4
Bachelor MQF Level 6
Masters MQF Level 7
Doctoral MQF Level 8

5.
6.

Credit Value
Version

3 Credit Hours

(state the date of the last Senate approval)

Date of Previous Version : September 2005

7.
8.

Pre-Requisite
Name(s) of academic/teaching staff

BFN1014 Financial Management

Norizaton Azmin Mohd. Nordin / Noor Ashikin bt
Mohd Rom

9.
10.

Semester and Year offered

Trimester 3 Year 3 or 4
Rationale
This course features an in-depth coverage of the important bank management issues of today with
emphasis on asset-liability management, risk management and bank performance. The course also
covers more recent issues in banking such as Islamic banking, bank mergers and acquisition, and
Internet banking.
Objective of the course/module in the programme :
To describe the theory and practice of bank operations.

11.

Date of Current Version : June 2011

To analyze bank performance

To illustrate how banks should make financial management decision.
To identify the importance of adapting change and creating value as the way for firms to succeed.
12.

Subject Learning Outcomes :

At the completion of the subject, students should be able to perform the following tasks:
LO1 Describe the theory and practice of bank operations(C2)
LO2 Analyze bank performance(C6)
LO3 Illustrate how banks should make financial management decision (C4)
LO4 Identify the importance of adapting change and creating value as the way for firms to succeed (C1).

13.

Mapping of Subject to Programme Outcomes (POs)

Mapping to Programme Outcomes

Ability to apply fundamental skills and techniques of finance in various

business events

PO1

% of
contribution
20%

Acquisition of knowledge and competency in the specialised areas of

financial engineering

PO2

60%

Ability to understand and solve the strategic dimensions of business work

in a team effectively

PO4

10%

Capability and enthusiasm for self-improvement through continuous

professional development and life-long learning

PO5

10%

15.

Teaching Learning Strategies:

The approach towards learning strategy are through:
Lectures based method of instructional strategy in classroom that provides a way to communicate and
disseminating a large amount of information.
Active learning strategy that allows student to talk and listen, read, write and reflect as they approach course
content through problem solving exercise and case studies all of which requires student to apply what they
have learned.
Cooperative/group collaberation learning that encourges student to forms groups and work together that
engages student in active discussion about issues and problem. Foster students communication skills,
promote thinking and decision making skills.

16.

17.

Assessment Methods and Types :

Method and Type
Assignment/Presentation

Description/Details

Percentage

Group discussion, written report and

Oral Presentation

30%

Test

Written exam

20%

Final Exam

Written exam

50%

Details of Subject
Topics
Overview of Banking Industry
Financial System Structure, The Banking Institutions, Bank Organization and
Regulation (Central Bank of Malaysia Act 1958, Banking and Finance Act
1989, Islamic Banking Act 1983, etc), Banking Trends and Competition

Mode of Delivery
Lecture
Tutorial
3

Analyzing Bank Performance

Bank Strategic Planning, Budgeting and Marketing

Bank Capital, Cash Assets and Competition for Funds

Managing Liabilities and Managing Capital Risk

Extending Credit to Business and Individuals

Overview of Credit Policy and Loan Characteristics, Evaluating Commercial
Loan Requests, Evaluating Consumer Loans, Problem Loans and Loan
Losses and Customer Profitability Analysis and Loan Pricing

Special Topics
Islamic Banking, Investment Banking (Merchant Banking), Global Banking,
Off-Balance Sheet Activities and Non-Interest Income and Bank Mergers and
Acquisitions
Financial Innovation and Information Technology in the Banking
Industry
The internet and home banking in the 21st century

19.

Details of Assignment:
Example Assignment 1: Banks in Malaysia: Roles, services and Performance
Objectives: To expose the students with the role, function, services offered by the financial institutions.
To apply the technique used in assessing the performance of the institutions.
Nature of assignment: Visit to the Financial Institutions, Secondary data collection, interviews (where
necessary) - produce a Term paper

20.

30.

Description: Students will be asked to collect information about their respective Financial Institutions.
They will assess the banks data and evaluate the performance.
Total Student Learning
Face to Face
Total Guided and
Time (SLT)
Independent Learning
Lecture
28
28
Tutorials
14
14
Laboratory/Practical
Presentation
Assignment(Group)
2
10
Mid Term Test
12
Final Exam
2
20
Sub Total
46
84
Total SLT
130
Reading Materials :
Textbook
Reference Materials

Peter Rose and Sylvia Hudgin, Bank

Management And Financial Services, Mc
Graw Hill, International Edition 2012, 9 th
Edition.

1.

Bank Negara Malaysia, (1994) Money and Banking

in Malaysia 4th Edition. Kuala Lumpur: BNM
Available 2 copies in MMU Cyberjaya: HG1601.M 66
1994

2.

Rose, Peter S. and Hudgins, Sylvia C., Bank

management & Financial Services, 6th ed. (2005),
Prentice Hall, New Jersey.
2010 Edition: 2 copies available at MMu Cyberjaya:
txtHG181 .R67 2010
2008 Edition: 1 Copy available at MMU Cyberjaya:
HG181 .R67 2008
2005 Edition: 1 copy available at MMU Cyberjaya and
1 copy available at MMU Melaka: HG181 .R67 2005

32.

3.

Abdul Samad A., Nik Rahmat K., and Bhupalan R.,

Guide to Islamic Banking in Malaysia: An Overview,
2nd ed. (1994), Institut Bank-Bank Malaysia, Kuala
Lumpur.

4.

Current and on-line newspapers and magazines,

such as Bankers Journal Malaysia, World Bank J

Mapping of assessment components to Learning Outcomes (Los)

Assessment Methods:
Assignment/
Project
Mid-term Exam
Final Exam

33.

34.

Individual or Group
Written Exam
Written Exam

Learning Outcomes
LO1

LO2

LO3

30%

10

40

40

60

20%

30

30

30

30

50%

60

30

30

10

Mapping of Learning Outcomes (LOs) to Programme Outcomes (POs)

LO No.
Description
PO1
LO1
LO1 Describe the theory and practice of bank
operations(C2)
25.0
LO2
LO2 Analyze bank performance(C6)
25.0
LO3
LO3 Illustrate how banks should make financial
management decision (C4)
25.0
LO4
LO4 Identify the importance of adapting change and
creating value as the way for firms to succeed (C1).
25.0

LO4

PO2

PO4

PO5

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

Appendix (to be compiled when submitting the complete syllabus for the programme) :
1. Mission and Vision of the University and Faculty
2. Mapping of Programme Objectives to Vision and Mission of Faculty and University
3. Mapping of Programme Outcome to Programme Objectives
4. Programme Objective and Outcomes (Measurement and Descriptions)

BFN 2044 Semester Planning

Week

Date

30/3-

Chap

3/4
2

Topics

An Overview of Banks and the Financial-Services Sectors

Government Policy and Regulation on Banking and the
Financial-Service Industry (BAFIA, AMLA)

Remarks

Set up a group
of 5.

Tutorial 1: Grameen Bank, Investment Banks, Offshore

Banks, Central Banks, The Federal Reserves, The

6/4-

10/4

World Bank, International Monetary Fund.

Bank Products (Savings and Current Account)
Bank Products (Fixed Deposits and Remittance)
Tutorial 2: Cases in Banking System (Fraud, Forgery,
Money Laundering)

13/4-

17/4

Bank Products (Bankers Cheque, Telegraphic Transfer,

and Foreign Currency Notes)

The Financial Statements of Banks and Their Principal

Competitors
Tutorial 3: Set up a bank using BAFIA.

20/424/4

6
7

27/41/5

Midterm Exam 1 hour (Chap 1-3)

Format

and

Measuring and Evaluating The Performance of Banks and

venue will be

Their Principal Competitors

announced.

Asset Liability Management

The Investment Function in Banking and Financial

10

Services Management.
Tutorial 4: Chap 5 Textbook- Problems 5.1, 5.2, 5.3, 5.4
Tutorial 5: Chap 6 Textbook-Concept Check: 6.4, 6.5,
6.6, 6.7, 6.11, 6.13, 6.16. Problems 6.1, 6.2 and 6.4

4/5-8/5

11
16

Liquidity and Reserves Management: Strategies and

DUE

Policies

ASSIGNMENT:

Lending Policies and Procedures

Tutorial 6:

(BEFORE

Chap 7 Textbook- Problems 7.1, 7.2, 7.4, 7.10, 7.17 and

12PM)

7.18
Chap 10 Textbook- Concept Check: 10.1, 10.2, 10.3,
10.10 and 10.22

DATE

MAY

2015

11/5-

17

Lending to Business Firms and Pricing Business Loans

15/5

18

Consumer Loans, Credit card and Real Estate Lending

Tutorial 7:
Chap 11 Textbook: Concept Check 11.1, 11.2, 11.3,
11.4, 11.5 and 11.6. Problem 11.1
Chap

16

Textbook:

Concept

Check

16.6,

16.7,

16.8,16.10
Chap 17 Textbook Concept Check 17.2 and 17.3.
Problem 17.1

18/5-

STUDY WEEK

24/5
9

25/531/5

FINAL EXAM STARTS

BFN 2044 Bank Management Group Project (20% Of Coursework

marks) (T3 2014/15)
Students should form a Group of 5 members. Each Group need to register
their members before the end of week 2, in which each group shall be given 1
bank to analyse (Please use the cover page attached, fill it up and send to
lecturer in week 2).
For each Bank assigned, the Group shall find the latest 3 years of the Banks
Annual Report (For example 2012, 2013 and 2014). You can use Bloomberg in
FOM Faculty Lab or in the Library.
Based on the Annual report, each Group must calculate and provide the
following:
1) ROE
2) ROA
3) Net Interest Margin
4) Net Non-Interest Margin
5) Net Operating Margin
6) Earnings Spread
7) Net Profit Margin
8) Asset Utilization
9) Equity Multiplier
10) Tax Management Efficiency Ratio
11) Expense Control Efficiency Ratio
12) Asset Management Efficiency Ratio
13) Fund Management Efficiency Ratio
14) Explain the trends of each ratio above.
15) Explain the strenghts and weaknesses of this Bank based on the result
of the ratios calculated.
16) Explain at least 10 types of risks the bank are facing.
17) Explain how the Bank can improve itself.
You can refer to textbook for the formulas page 171-177.
FORMAT (Must have):
Title page & Table of content
References & End Notes
Spacing 1.5 & Font Times New Roman
Minimum no. of pages: 30 pages
DUE DATE: 6 MAY 2015 (WEDNESDAY BEFORE 12.00 PM).

ANY LATE SUBMISSION WILL DEDUCT 2 MARKS EACH DAY. ANY

PLAGIARISM FOUND WILL DEDUCT HALF OF THE TOTAL ASSIGNMENT
MARKS.

BFN 2044
BANK MANAGEMENT
BANK ANALYSIS ASSIGNMENT
SEM 3 2014/15

FOR:
(Lecturers Name)
Lecture Group: ______
Name of Bank: ___________________
Date: ______________

GROUP MEMBERS:
NAME

STUDENT ID

% OF CONTRIBUTION

SIGNATURE