Banking Management
PROF. ELENA BECCALLI; PROF. CLAUDIO CASALETTI
COURSE AIMS
The course aims to provide an in-depth view of the main spheres of bank
management. At the end of the course, the student should have an understanding of
the following themes with respect to banks: strategic orientation of the business
model, marketing area, organisational structure, technological factor, management
of the credit process, internal control systems and corporate governance.
Throughout the course a special focus will be placed on the analysis of practical
applications and empirical data with respect to the topics studied.
COURSE CONTENT
INSTRUCTIONAL OBJECTIVES THAT THE STUDENT SHOULD HAVE ACHIEVED BEFORE TAKING THE
COURSE
Before taking the course, the student should:
– understand the types of intermediaries operating in a financial system;
– understand the economic functions carried out by banks;
– understand funds management and the management of bank loans;
– understand the structure of financial statements for credit intermediaries;
– understand the capital adequacy regulations.
INSTRUCTIONAL OBJECTIVES OF THE COURSE
The strategic orientation of business models
After having completed the study of the material, the student should:
– understand the principal models of bank intermediation (originate-anddistribute and originate-and-hold) and know how to explain the reasons for a
bank failure with the originate-and-distribute model;
– understand the business model for an investment bank and know how to apply
such knowledge to the analysis of recent cases of failure /acquisition;
– understand the mass-customisation strategies employed by banks and know
how to apply such knowledge to the analysis of a case of success in the credit
card segment.
The marketing area
After having completed the study of the material, the student should:
– understand the definition and the sphere of operations for bank marketing;
– understand the purposes and types of market segmentation models;
– understand the planning of marketing;
– understand the organisational models for the marketing area;
– know how to set up and resolve a case of launching an ad campaign for a
banking product.
The organisational structure
After having completed the study of the material, the student should:
– understand the principal organisational structures of a bank;
– understand and know how to evaluate the effectiveness and efficiency of bank
organisational models;
– understand the organisation of lending activity (organisational decentralisation,
managerial role of the branch head and adoption of scoring systems) in Italy.
The technological factor
After having completed the study of the material, the student should:
– understand the magnitude and mix of investments in technology in the banking
sector;
– understand the percentage of e-business with respect to a bank's operations and
know how to apply such knowledge to a case of a bank with global operations;
– understand the concept of customer relationship management and know how to
apply it to a case of credit card management;
– understand the impact of technology on bank performance;
– know how to measure the impact of technology on bank performance and to
apply such knowledge to global banks.
The credit management process
After having completed the study of the material, the student should:
– understand the phases of the credit process: initial review, disbursement/review,
approval, monitoring;
– know how to apply methods for verifying conformity and measurement during
monitoring.
The system of internal controls within banks
After having completed the study of the material, the student should:
– understand the significant of internal control systems in managerial models;
– understand the development over time of oversight with respect to internal
controls systems;
– understand the role of internal controls systems in integrated risk management.
An integrative module will be carry out by Doc. Claudio Casaletti on the topic
“Electronic money”.
READING LIST
Given the particular structure of the course and the analysis of certain topics over a long
term horizon, it is not possible to identify specific textbooks that cover all course topics.
Accordingly, various reading references will be indicated in class.
Series of readings and supplemental instructional materials will be made available on the
course site of the Blackboard platform.
TEACHING METHOD
The course will be taught through lectures, assignments with presentations by students
and seminars by experts on the subject.
ASSESSMENT METHOD
Written exam (90 minutes), with possible interview. Assessment of corporate cases
discussed in groups in class, if any.
NOTES
Further information can be found on the lecturer's webpage at
http://docenti.unicatt.it/web/searchByName.do?language=ENG or on the Faculty notice
board.