AD477 – Syllabus


Course code/title

AD-477 Bank Management

Class Meeting Hours and Rooms

Monday 5,6,7 IB-210

Instructor Name

Bülent Şenver

Instructor contact information ;

Instructor office hours

Monday 11:30 – 13:00

Course description/Course overview

This course will cover the important concepts and principles of bank management. The topics discussed in this course will be useful to all stakeholders who will have a relationship with a bank.


AD-312 Money & Banking
EC-344 Money, Banking and Financial Institutions

Learning Goals

This course is recommended to every “Business Administration” student who wants to understand how the “Banking System” operates, regardless of his/her major. In today’s world everyone has to deal with a bank at the personal level.

Most business majors will have to work with banks to conduct their businesses, as well. To be successful in dealing with banks in your future life, you should understand how banks operate, how they think, how they make decisions and what their values, strategies, principles and priorities are. Don’t miss this chance to get familiar with banking terminology and concepts.

Learn how to think, see, how to evaluate, decide and speak like a “Banker”. Learn how to negotiate with banks when running your future businesses. Make the most out of your relationship with a bank.

Learning Objectives

In every economy the Baning System is the locomotive of the economy and the private sector. The health growth of the private and government sector companies depends on the healthy operations of the banking sytem and the financial markets.

The objective of this course is to give the students basic knowledge of how the banking system operates. Students will learn the basic principles and concemts of bank management and understand the critical charecteristcs of banking products and services. Students will also learn the basic banking risks and how to monitor these risks.

After completing this cource students will also learn how to negotiate with banks for their products and services in order to maximise their personal and their compay’s benefits.

Performance Evaluation/Grading

20% Project Paper
30% Midterm Exam
50% Final Exam


Attendance to the courses is required. Students who have a valid reason to miss a course should inform the instructor.

Course Schedule

  1. Introduction to Banking System
    1. History of the Banking System
    2. New Developments in the Banking System
    3. Turkish Banking System
    4. Banking Risks (CAMEL)
  2. Banks and Financial Institutions
    1. Types of Banks & Their Functions
    2. Types of Financial Institutions & Their Functions
    3. Competition between Banks and Other Financial Institutions
  3. Banking Products and Services
    1. Retail Banking Products & Services
      1. Demand & Time Deposits
      2. Certificate of Deposits
      3. Credit Cards, Charge Cards, Debit Cards, Smart Cards, Chip Cards
      4. Automated Teller Machine (ATM) Services
      5. Telephone Banking Services
      6. Internet Banking services
      7. Electronic Paymednt Systems
      8. The Stock Exchange products
      9. Consumer Loans
      10. Mortgage Loans
    2. Corporate banking Services & Products
      1. Corporate Loans
      2. Cheque Clearing Services
      3. Promissory Note Services
      4. Cash & Asset Management services
      5. Electronic Fund Transfer Services (EFT)
      6. SWIFT Services
      7. Import & Export Services
      8. The Stock Exchange Products & Services
  4. Managing Bank Assets
    1. Managing Liquid Assets
      1. Cash Management
      2. Managing Bank Balances
      3. Managing Treasury Assets
      4. Utilizing Interbank, Money Markets, Capital Market opportunities
    2. Managing Loan Portfolio
      1. Managing the Credit Risk
      2. Managing Interest Rate Risk, Determining Loan Interest Rates
      3. Managing Interest Rate Sensitivity
      4. Managing Problem Loans
    3. Managing Long-Term Investments
      1. How to Manage Equity Participations
      2. How to Manage Fixed Assets
      3. How to Manage Long Term Capital Market Investments
    4. Managing Foreign Currency Assets and Liabilities
      1. Managing the Foreign Exchange Risk
      2. Managing Short & Long F/X Positions
      3. Spot, Forward, Swop, Hedging Techniques
  5. Managing Bank Liabilities
    1. Deposit Management
      1. Managing Maturity Mismatch Risk
      2. Minimizing Interest Rate Risk
      3. Managing the Interest Rate Sensitivity Gap
      4. Interest Rate Strategies, Fixed, Variable, Indexation
      5. Determining Deposit Interest Rates
    2. Managing other Borrowed Funds
      1. Securitization of Assets
      2. Issuing Bank Bonds and Notes
      3. Managing International Borrowings, Syndicated Loans
      4. Managing Correspondent Bank Accounts
  6. Managing the Bank Support Systems
    1. Human Resources, Personnel and Training
    2. Purchasing and Maintenance Services
      1. How to Manage the Computer & Technology in Banks
      2. How to utilize Accounting , Auditing and Management Reporting Systems
  7. Ethical Issues and Moral Hazard in Banking Business


  1. Bank Management by Timothy W. Koch
  2. Commercial Bank Management by Peter S. Rose
  3. Commercial Banking Management of Risk by Benton E. Gup
  4. Reading Materials assigned to students on
  5. Class Notes

Course Policies/Ethical conduct

  1. Students are recommended to attend to class lectures.
  2. Participation to class discussions are encouraged.
  3. One class will be made at the bank’s head office building and general manager of the bank will address the students on banking issues. Participation to this Bank Visit is recommended.
  4. Project Paper will show the students’ research, analysis and evaluation skills and should be conducted by the student to reflect his/her team work and creativity.