University of Veterinary and Animal Sciences

UVAS Business School

Department of Economics and Business Management

Course Code: Course Title: Commercial Banking

Program: BBA 7 and MBA 5 Semester: Fall/Winter
Credit Hours: 3 Total Sessions: 36
Teacher’s Name: Syeda Reema Aftab Email: reema.aftab@uvas.edu.pk

Course Description:

The course is designed to equip students with knowledge of a Commercial Banking and its regulatory
framework and environments in Pakistan, and as it exists in a developed economy. On completion of the
course the students shall be able to demonstrate an understanding of the subject matter and financial
environments in Pakistan.

Learning Objectives:

On completion of the course the students shall be able to demonstrate an understanding of the
subject matter and financial environments, not only in Pakistan but in the outside developed
financial world. To critically examine the salient features of financial system and role of
commercial Banking in it. To understand the regulatory framework, the world regulatory
architecture shaping up. The strength and weaknesses of some of the regulations.

Teaching-Learning Methodology:
 Lectures
 Reading Material
 Handouts
 Project Report

Assessment & Evaluation:

Class activities (including quizzes, assignments 10%

etc)
Mid Term 30%
End Term 60%
Total 100%
Recommended Textbook and Readings:

 Bank Management & Financial Services. By Peter S. Rose & Sylvia C. Hudgins. 8th
Edition
 Banking Laws from Institute of Banking of Pakistan.
 Banking System Review. A publication by SBP, available on SBP website

CALENDAR OF ACTIVITIES
Semester Starting Date: October 28, 2019
Week Contents Tasks/Activities
Introduction to the course and Background Knowledge
1. Assessment

Chapter 1: An Overview of the Banks and the Financial-

Services Sector
2.
What is a bank? Different kinds of financial service firms;
Leading competitors of banks
Chapter 1: An Overview Introduction of Banks and the
Financial-Services
3. Different roles played by the bank and other financial
institutions; Services offered by the banks and their closest
competitors

Products and Services offered by the Banks

4. Personal Banking (Current accounts; Savings and Term
Deposits; Bancassurance)
Products and Services offered by the Banks
5. Personal Banking (Investment services, Asset Management,
Consumer loans, Domestic remittance)

Products and Services offered by the Banks

6. Corporate Banking (Transaction and Banking accounts;
Savings and Term deposits; SME financing)
Products and Services offered by the Banks
7. Corporate Banking (Corporate and Investment Banking;
Treasury services, Trade services, Agricultural financing)
8. Products and Services offered by the Banks
Islamic Banking (Musharakah, Mudaraba, Murabaha,
 Salam, Istisna, Ijarah)

9. Mid Term Examination

Chapter 5 The Financial Statements of Banks and Their
Principal Competitors

An Overview of Balance Sheets and Income Statements. Assignment

10. The Balance Sheet (Report of Condition). The Principal Announcement and
Types of Accounts. Recent Expansion of Off-Balance-Sheet Discussion
Items in Banking the Problem of Book-Value Accounting;
Auditing: Assuring Reliability of Financial Statements

Chapter 5 The Financial Statements of Banks and Their

11. Principal Competitors

A Comparison to Bank Statements.

Chapter 5 The Financial Statements of Banks and Their
Principal Competitors
12.
An Overview of Key Features of Financial Statements and
Their Consequences

Chapter 6 Measuring and Evaluating the Performance

of Banks and Their Principal Competitors

Evaluating Performance; Determining Long-Range

13. Objectives; Maximizing the Value of the Firm: A Key
Objective for Nearly All Financial-Service Institutions;
Profitability Ratios: A Surrogate for Stock Values; Using
Profitability Formulas for Banks and Other Financial’
Service Companies

Chapter 6 Measuring and Evaluating the Performance

of Banks and Their Principal Competitors

Breaking Down Equity Returns for Closer Analysis; Periodic review of

14. Breakdown Analysis of the Return on Assets; What a Assignment
Breakdown of Profitability Measures Can Tell Us;
Measuring Risk in Banking and Financial Services; Other
Goals in Banking and Financial-Services Management

15. Chapter 6 Measuring and Evaluating the Performance

of Banks and Their Principal Competitors

The Impact of Size on Performance. Size, Location, and

Regulatory Bias in Analyzing the Performance of Banks and
 Competing Financial Institutions Using Financial Ratios and
Other Analytical Tools to Track Bank Performance— The
UBPR

Chapter 11 Liquidity and Reserve Management:

Strategies and Policies

Introduction; The Demand for and Supply of Liquidity; Why

16. Financial Firms Often Face Significant Liquidity Problems
Asset Liquidity Management (or Asset Conversion)
Strategies Borrowed Liquidity (Liability) Management
Strategies; Balanced Liquidity Management Strategies;
Guidelines for Liquidity Managers

Chapter 11 Strategies for Liquidity Managers

Estimating Liquidity Needs. The Sources and Uses of Funds

Approach... The Structure of Funds Approach. Liquidity
Indicator Approach. The Ultimate Standard for Assessing Assignment
17. Liquidity Needs: Signals from the Marketplace. Legal Submission and
Reserves and Money Position Management. Regulations on Evaluation
Calculating Legal Reserve Requirements; Factors
Influencing the Money Position. Factors in Choosing among
the Different Sources of Reserves Central Bank Reserve
Requirements around the Globe

18. Final Term Examination