TON DUC THANG UNIVERSITY

FACULTY OF FINANCE AND BANKING

----------------------------------HoChiMinh City, . December 2015
UNDERGRADUATE DEGREE PROGRAM IN FINANCE AND BANKING
COMMERCIAL BANKING
SYLLABUS
1.
2.
3.
4.
5.
6.
7.

8.

Course Name: COMMERCIAL BANKING 2

Course Code:
No of credits: 3 (3.0)
Degree level: Bachelor in Finance and Banking
Code:
Time allocation:
- Theory: 45 teaching hours.
- Self study: 90 hours.
Pre-requisite:
Prerequisites: English 1, Commercial Banking 1
Prohibitions: English 2, Money and Capital Market
Description:
Following the subject Commercial Banking 1, this subject examines organization structure of
banks as well as how banks and other financial firms are organized to serve their customers.
In addition, the subject also focuses on analyzing the balance sheets and income statements of
commercial banks. Moreover, This subject will introduce an overview of banking
management techniques such as: risk management, liquidity and reserve management, capital
management, etc. Finally, the subject covers relevant prudent regulations for commercial
banks in order to manage these risks.
Main objectives:
- Knowledge: Provide students knowledge about organization structure and main risks of
commercial banks as well as the hedging tools for against these risk.
- Skills: After completing this course, students will understand:
Key factors which reshaped commercial banks in economic integration period
Traditional and modern business activities of banks
Organization structures of banks
The balance sheets and income statements of banks and other financial firms
Define and explain assets, liability and fund management
Market rate and interest rate risk, the goals of interest rate hedging
The use of derivatives in managing commercial banks risks.
Liquidity management strategy and estimating liquidity needs
Capital and Risk Exposures
Applications of Basel 1 & Basel 2
Planning to Meet Capital Needs

- Thinking: It is expected that students perceive the role and purpose of science, knowledge
through their studying and researching activities.
- Attitude and behavior: It is expected that students comply with the principles, ethics in the
scientific research.
9. Brief course content
Chapter 1: The Organization and Structure of Banking and the Financial Services Industry
Chapter 2: The Financial Statements of Banks and Theirs Principal Competior
Chapter 3: Risk Management
Chapter 4: Liquidity and Reserve Management
Chapter 5: Management of Capital
10. Outcome of the course
Results
1
2
3
4
5
6

Understand
Remember
Apply
Analyze
Judge
Offer: none
11. Student tasks
The highest professional standards are expected of all students who study this course. The
collective class reputation and the value of the programs experience hinges on this. This
includes:
Being on-time and in your seat when class starts
Staying until the end of class. Should students have to leave class early, please have
the courtesy of letting the instructor know before the beginning of the period and leave
quietly so as not to disturb the other members of the class.
Being constructive to the learning environment. E-mail and the Internet access are not
allowed during lectures. Mobile phones (both smart and inept) and other electronic
devices need to be set to silent during class at all times.
Being present in the class and focused on class material. The lectures will sometimes
cover extra material (e.g., exercises, discussions) not contained in lecture notes.
Students are responsible for everything covered or assigned in class. If students miss a
class, it is entirely their responsibility to determine what they have missed including
any administrative announcements lecturer may have made.
Collect themselves the lending/borrowing document for expanded study.
Coming prepared to contribute to the class.
Communication with the lecturer.
Think about this class as though it was a job, and professionalism in class is a good discipline
to prepare you for the real world.

12. Teaching materials

Main textbook/ resources:
Bank management and financial services / Peter S. Rose, Sylvia C. Hudgins
Other resources:
[1] Qun tr ngn hng thng mi = Commercial bank management / Peter S. Rose ; Nguyn
Huy Hong, Nguyn c Hin, Phm Long dch
[2] PGS.TS. Nguyn ng Dn. Nghip v ngn hng thng mi. NXB i hc Quc gia,
2013.
[3] PGS.TS. Nguyn ng Dn. H thng bi tp v bi gii nghip v ngn hng thng
mi. NXB i hc Quc gia, 2013.
[4] TS. Nguyn Minh Kiu. Nghip v ngn hng thng mi. Nh xut bn Thng k, 2013
[5] TS. Nguyn Minh Kiu. Bi tp v bi gii nghip v ngn hng thng mi. NXB
LXH, 2013.
[6] Law on the State Bank of Vietnam, 2010, State Bank of Vietnam
[7] Law on Credit Institutions, 2010, State Bank of Vietnam
[8] Circular No. 36/2014/TT-NHNN dated November 20, 2014 of the State Bank of Vietnam
13. Assessment scheme
On-going assessment:
- Class Performance1:
20%
- Class Performance2:
20%
- 01 mid-term test:
20%
- Final Exam:
40%
Completion Criteria: Final Result >=5
14. Scoring scale: 10 points

15. Schedule
Session

Content

Category
E P D

Self-study

Outcomes
[1] - [4]

Requirements

Student's tasks
At class: None
Preparation
Reading:
- [1] Reading: Chapter 3

Chapter 1: The Organization and

Structure of Banking and the Financial
Services Industry
1.1. The Organization and Structure of the
Commercial Banking Industry
1.2. Internal Organization of Banking Firm
1.3. The Array of Organization Structures
and Types in the Banking Industry
1.4. An Alternative Type of Banking
Organization Available as the 21st Century
Opened: Financial Holding Companies
(FHCs)
1.5. Mergers and Acquisitions Reshaping
the Structure and Organization of the
Financial Services Sector
1.6. Financial Firms Goals: Their Impact
on Operating Cost, Efficiency, and
Performance

(P65-P96)
- [1] Insights and Issues:
The structure and
organization of banks in
Europe and Asia
(chapter 3)
After class
Reading and
Assignments:
- [7] Reading: Law on
Credit Institutions,
2010, State Bank of
Vietnam
- The questions and
problems at the end of
the chapter.

Chapter 2: The Financial Statements of

[1] - [4]

At class: None

Preparation
Reading:
- [1] Reading: Chapter 5
(P129-P164)
After class

Banks and Theirs Principal Competitors

2.1. An Overview of Balance Sheet and
Income Statements
2.2. The Balance Sheet
2.3. Components of the Income Statement
2.4. The Financial Statements of Leading
Nonbank Financial Firms: A comparison to
Bank Statements
2.5. An Overview of Key Features of
Financial
Statements
and
Their
Consequences

Chapter 3: Risk Management

3.1. Asset-Liability Management and
Duration Techniques
3.2. Using Duration to Hedge against
Interest Rate Risk
3.3. Financial Futures, Options, Swaps, and
Other Hedging Tools
3.4. Asset-Backed Securities, Loan Sales,

Reading and
Assignments:
- [1] Assignment: First
look at your BHCs
financial statements
(chapter 5)
- [1] Assignment:
Evaluation of your
banks profitability
(chapter 6)

[1] - [4]

- The questions and

problems at the end of
the chapter.
At class: None
Preparation
Reading:
- [1] Reading: Chapter
7-8-9 (P217-P319)
After class

Reading and
Assignments:
- [1] Assignment: Your
banks interest rate
sensitivity (chapter 7)

Credit Standbys, and Credit Derivatives

[1] - [4]

- The questions and

problems at the end of
the chapter.
At class: None
Preparation
Reading:

Chapter 4: Liquidity and Reserve

Management
4.1. The Demand for and Supply of
Liquidity
4.2. Why Financial Firms Often Face
Significant Liquidity Problems
4.3. Strategies for Liquidity Managers
4.4. Estimating Liquidity Needs
4.5. Legal Reserves and Money Position
Management
4.6. Factors in Choosing among the
Different Sources of Reserves
4.7. Central Bank Reserve Requirements
around the Globe

Chapter 5: Management of Capital

- [1] Reading: Chapter

11 (P359-P395)
- [6] Reading: Law on
the State Bank of
Vietnam, 2010, State
Bank of Vietnam
After class
Reading and
Assignments:

[1] - [4]

- The questions and

problems at the end of
the chapter.
At class: None

Preparation
Reading:
- [1] Reading: Chapter
15 (P485-P518)
- [8] Reading: Circular
No. 36/2014/TT-NHNN
dated November 20,
2014 of the State Bank
of Vietnam

5.1. Capital and Risk

5.2. Types of Capital in Use
5.3. One of the Great Issues in the History
of Banking: How much Capital Is Really
Needed?
5.4. The Basel Agreement on International
Capital Standards: A Continuing Historic
Contract among Leading Nations
5.5. Planning to Meet Capital Needs

After class
Reading and
Assignments:
- [1] Assignment: Your
banks capital: the
cushion for losses and
funds for growth
(chapter 15)
- The questions and
problems at the end of
the chapter.

16. Description of Evaluation

Evaluation
Weight
Duration
Category

Type of questions

Number of
questions

Scope of knowledge and skill

of questions

In
class
(depend on
lecturer)
In
class
(depend on
lecturer)

Random Exercises/Answer the At

least
question during class + Multiple exercises/many
choice questions
questions/class

Process point 1

20%

Process point 2

20%

Mid-term test

20%

45 minutes

Random Exercises+
choice questions

Final exam

40%

60 minutes

Random Exercises+
choice questions

Random Exercises+
choice questions

Ging vin bin son

2 Integration
of
studied
knowledge and skills of
chapters covered so far
Integration
of
studied
Multiple At least 1 exercises
knowledge and skills of
+ 1 team project
chapters covered so far
At
least
20 Integration
of
studied
Multiple
questions and 2 knowledge and skills of
exercises
chapters covered so far
At
least
40 Integration
of
studied
Multiple
questions and 2 knowledge and skills of
exercises
chapters covered so far

Chu trch nhim khoa hc

Trng Khoa

NCS.
Ging vin c li, phn bin

Kim sot so snh mu

Trng phng o to

NCS.
Kim sot chuyn mn
Trng B mn

Ph chun ca Ch tch hi ng khoa hc v o to

Ngy

thng

nm

NCS.

GS. L VINH DANH