Bank management
(ex-Introduction to banking)
Year: 2014-15 - Autumn term (I semester)
Lecturer
Francesca Battaglia
francesca.battaglia@uniparthenope.it
BANK MANAGEMENT
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Prerequisites
2
Course Aims
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Learning Outcomes
3
Teaching Delivery
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Course Assessment & Program
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Recommended textbook
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BANK MANAGEMENT
This course is an introduction to both theoretical and practical issues related to the modern banking
business. The course begins with an overview of the role and genesis of the financial system and the
nature of financial intermediation. It covers the main characteristics and types of banks (e.g.,
commercial and mutual; retail and wholesale; role of central banks) and analyses recent trends and
developments in relation to both domestic and international banking markets. The course also
explores the main items contained in banks’ financial statements and explains how to assess bank
performance by using basic financial ratios. Relating to bank profitability, we analyze accountingbased measures, market-based indicators, as well as risk-adjusted performance measures.
The second part of the course focuses on the bank risk-taking, by analyzing the main bank risks(i.e.
credit risk, market risk, interest rate risk and liquidity risk) and by pointing out the elementary risk
management techniques. In particular, we focus on the estimation of normal distribution VaR, the
historical VaR and the Expected Shortfall. Moreover, it examines the rationale for bank regulation,
by distinguishing among the different types of regulation and by focusing on Basel 3.
Prerequisites
For postgraduate students (laurea magistrale):
 None
For undergraduate students (laurea triennale):
 Economia degli intermediari finanziari
Course Aims
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to introduce basic concepts that relate to the traditional business of banking
to examine the recent trends and developments in domestic and international banking
to provide students with an understanding of banks’ accounts and financial ratios analysis
to examine the most important banking risks and their management
to construct coherent arguments concerning the need for financial regulation
to provide students with an understanding of the importance and role of technology and
financial innovation for modern banks
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Learning Outcomes
After completing this course students should be able to:
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Define bank financial intermediaries
Explain the differences between banks and other financial intermediaries
Explain the role and functions of central banks
Analyse and interpret basic banks’ financial statements and the key performance ratios and
measures
Understand the risks in banking and elementary risk management techniques (i.e. estimate
the normal distribution and the historical VaR and the Expected Shortfall)
Critically evaluate why banks need regulation and understand the key features of Basel 3
Teaching Delivery
2 two-hours lecture as outlined in the “lecture and class schedule”. You are expected to do
relevant reading and preparation before the lecture. It is strongly recommended that also you
do additional reading to supplement the lecture material.
2 two-hours class: seminar and excel applications to real data every week (i.e. estimation of
bank performance and risk).
2 two-hours lecture or class.
Course Assessment & Program
Attending students:
They will be assessed by an interview on one of the main topics analyzed during the course
(selected in agreement with the lecturer)
Not-attending students:
They will be assessed by an oral examination (100%) in one of the scheduled dates in the calendar
of exams. In this case, the course program is the following:
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Casu B., Girardone C., Molyneux P. (2006), Introduction to banking, FT Prentice Hall,
chapters from 1 to 11 (with the exception of the chapter 4);
Rose and Hudgins (2009), Bank Management & Financial Services, McGraw-Hill
International Edition, 8 edition, chapters 8, 15, 16, 17 and 18.
or in Italian language:

Banfi, Capizzi, Valletta, Nadotti (2010). “Economia e gestione della banca”. McGraw-Hill
(all chapters)
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Recommended textbook
(CGM)
Hall*
Casu B, Girardone C., Molyneux P. (2006), Introduction to banking, FT Prentice
(RH)
Rose and Hudgins (2009), Bank Management & Financial Services, McGraw-Hill
International Edition, 8 edition
* denotes strongly recommend
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