Commercial Bank Management

About the course

Subjects

Microeconomics Macroeconomics International economics Finance Business economics

Course content

This course covers commercial banks' role in delivering financial services in an economy. The first section covers assets, liabilities, off-balance sheet items, and the measurement of performances to provide an overview of the core functions of a commercial bank. The next section focuses on the various risks commercial banks face, including credit risk, interest rate risk liquidity risk, and the approaches to manage them in a highly competitive and regulated environment. The role of the central bank and the adoption of Basel rules on managing the risks are studied in detail. The course will also cover the emergence of digital banking and the role of cryptocurrencies, including the role of bitcoin and blockchain technology. The course will include a discussion on the Principles for Responsible Banking, and the role of banks in the transformation to a green economy. Finally, students will be introduced to Fintech.

See course description in course catalogue

What you will learn

To achieve the grade 12, students should meet the following learning objectives.

Identify, explain, discuss and apply the core concepts, models and methods
Recognize the role of commercial banks in the financial intermediation of capital in an economy
Identify and discuss the role of the central bank in managing monetary policy, ensuring the safety and soundness of the banking system
Learn the various assets and liabilities of modern-day commercial banks including off-balance innovations such as mortgage-backed securities and loan guarantees
Classify and explain the various risks faced by commercial banks including credit, interest rate risk, and liquidity risk.
Define and discuss value creation in banks and the measures used to analyze bank safety and performance

Course prerequisites

The course builds on concepts from Corporate Finance and Accounting. Students are expected to have a good background in basic financial principles and tools including time value of money, risk-return portfolio optimization, CAPM, capital structure theory, and applications. Basic knowledge of financial statements and statistical analysis are also desirable but not mandatory.

Facts

Level

Bachelor

Type

Elective

ECTS

7.5

Code

BHAAV2503U

Teaching periods

Autumn – semester

Academic year

2025/2026

Status

Available places

Teaching language

English

Teaching Format

Hybrid

Exams

Written exam on campus
Individual exam, winter

Assessment type

7 point grading scale