Financial Institution is an institution regulated by the government which provides financial services for its members or stakeholders. Management of Financial Institutions paper enables DU BMS students to understand the tools and techniques of management of banks and financial institutions.
Here we present Delhi University TYBMS Sem 5 Syllabus – Management of Financial Institutions:
Unit 1 – 12 lectures
- Structure of Indian Financial System – an overview
- Financial social reforms – context, need and objectives
- Major reforms in the last decade
- Competition
- Deregulation
- Capital requirements
- Issues in financial reforms and restructuring
- Future agenda of reforms
- Regulation of banks
- NBFCs and FIs: Salient provisions of banking regulation act and RBI act
- Role of RBI as a central banker
- Products offered by banks and FIs
- Retail banking and corporate banking products
- Universal banking – need, importance, trends and RBI guidelines
- Core banking solution (CBS)
- RTGS and internet banking
- NBFCs and its types
- Comparison between banks and NBFCs
Unit 2 – 11 lectures
- Analyzing bank performance
- The balance sheet
- Income statement
- Profitability
- Liquidity and solvency analysis
- CAMELS Risk System
- Asset liability management
- RBI guidelines on asset liability management
- Liquidity risk
- Liquidity management
- Setting up prudential limits
- Interest rate risk
- ALM vis a vis profitability
- Factors affecting interest rates
- Structure of interest rates
- Gap analysis with numerical
Unit 3 – 11 lectures
- Investment and Funds management
- Funds flow analysis
- Borrowing and lending behavior of FIs
- Valuation of investments
- SLR and CRR management with numerical
- Risk management in banks
- RBI guidelines on credit risk management
- Credit policy
- Credit process
- Characteristics of different types of loans
- Assessing credit risk
- Credit risk rating and credit pricing
- Exposure norms
- Parameters of financing by banks and FIs
- Prevention and detection of frauds
- Capital adequacy norms
- Basel agreement II and III
- Effect of capital requirements on bank operating policies
Unit 4 – 11 lectures
- Management of non-performing loans
- Classification of assets
- Income recognition and provisioning norms with numerical
- Reasons for NPAs
- Preventive and corrective steps
- Corporate debt restructuring
- Recovery management policy
- Compromise and settlements.
Unit 5 – 11 lectures
- Insurance companies
- Economics of insurance
- Life insurance
- General insurance
- Reinsurance
- Insurance sector reforms
- Liberalization of insurance sector
- Entry norms for insurance sector
- Investment management policies
- Exposure norms.
Text books and References:
- Financial markets and institutions : A modern perspective – Saunders, Anthony and Cornett, Marica Millon
- Financial institutions and markets: Structure, growth and innovations – LM Bhole
- Financial institutions and market – Madura, Jeff
- www.rbi.org
- Teaching will be mainly through latest study material available from RBI, various stock exchanges, market regulators and Government agencies.
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