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Course Description Course Name : Risk Management in Banking Course Code : MG11 708 Course Type : Compulsory Level of Course : Second Cycle Year of Study : 1 Course Semester : Spring (16 Weeks) ECTS : 5 Name of Lecturer(s) : Asst.Prof.Dr. GAMZE VURAL Learning Outcomes of the Course : To be able to have a practical and theoretical knowledge/skills in banking and bank management To be able to realize the importance of banks in the financial system To be able to explain the functions and working principles of the Central Bank To be able to read the financial statements of banks To be able to evaluate asset-liability management in banks To be able to calculate Gap and Duration analyis To be able to apply the risk management tools Mode of Delivery : Face-to-Face Prerequisites and Co-Prerequisites : None Recommended Optional Programme Components : None Aim(s) of Course : The main objective of this course is to provide information about the importance of financial system and the banking system. Course Contents : In this course, the functions of the central bank and the other banks, general information about the financial statements of banks and basic tools for risk management in banking are discussed. Language of Instruction : Turkish Work Place : Will be determined by the dean´s office   Course Outline /Schedule (Weekly) Planned Learning Activities Week Subject Student's Preliminary Work Learning Activities and Teaching Methods 1 Financial System and the importance of banks Reading the relevant chapter of the Banking Management and Performance Analyisis book and the lecturer´s own course notes Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 2 Central Banks and Monetary Policies Reading the second chapter of the Banking Operations book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 3 Functions of commercial banks, the source and use of funds Reading the 5th chapter of the Banking Operations book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 4 Financial statements analysis in banks Reading the 4th chapter of the Banking Management and Performance Analyisis book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 5 Basic Credit İnformation Reading the 7th chapter of the Banking Operations book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 6 Asste-Liability Management and Risk Management Reading the 1st chapter of the Risk Management and Basel 2 book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 7 Banks´ capital adequacy and market risk calculations Reading the 2nd chapter of the Risk Management and Basel 2 book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 8 Midterm exam Preparation for the exam Written exam 9 Risk management in commercial banks: Credit Risk Management Reading the 3rd chapter of the Risk Management and Basel 2 book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 10 Risk management in commercial banks: Operational Risk Management Reading the 4th chapter of the Risk Management and Basel 2 book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 11 Risk management in commercial banks: Liquidity Risk Management Reading the 5th chapter of the Risk Management and Basel 2 book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 12 Risk management in commercial banks: Interest Risk Management and GAP and Duration Analysis Reading the 15th chapter of the Banking Management and Perormance Analyisis book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 13 Risk management in commercial banks: Exchange Risk Management Reading the 16th chapter of the Banking Operations book Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 14 Current Reviews in Turkish Banking Sector General revising Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 15 Overview of the topics covered Reviewing the sections of the books about the topics covered Presentation of theoretical approaches, powerpoint slides, giving current examples, solving problems on the board, discussion 16/17 Final exam Preparation for the exam Written exam   Required Course Resources Resource Type Resource Name Recommended Course Material(s)  Bankalarda Risk Yönetimi ve Basel 2, Hasan Candan ve Dr. Alper Özün, Türkiye İş Bnaksı Kültür Yayınları  Banka İşlemleri, Alptekin Güney, Beta Yayınları  Banka Yönetimi ve Performans Analizi, Dr.Öztin Akgüç, Arayış Basım ve Yayıncılık  Bankalarda Finansal Yönetime Giriş, Arman Tevfik ve Gürman Tevfik, TBB Yayını  Finansal Pazarlar Finansal Kurumlar ve Sermaye Pazarı Analizleri, Serpil Canbaş ve Hatice Doğukanlı, Beta Kitabevi  Ticari Bankalarda Kredi Portföyünün Analizi, Güler Aras, SPK Yayını  Modern Bankacılık Teori ve Uygulama, İlker Parasız  Financial Markets and Institutions, Jeff Madura, West Publishing Company Required Course Material(s)  http://www.tcmb.gov.tr  http://www.spk.gov.tr  http://www.tbb.org.tr   Assessment Methods and Assessment Criteria Semester/Year Assessments Number Contribution Percentage     Mid-term Exams (Written, Oral, etc.) 1 60     Homeworks/Projects/Others 0 40 Total 100 Rate of Semester/Year Assessments to Success 40   Final Assessments 100 Rate of Final Assessments to Success 60 Total 100   Contribution of the Course to Key Learning Outcomes # Key Learning Outcome Contribution* 1 Defines the basic theoretical models and numerical methods of finance function and describes the intended use. Indicates each model´s weak and strong aspects. 3 2 Analyses strategic and operational plans for financial companies, and creates sufficient knowledge to find solutions to the problems that might arise. 3 3 Explains how to create theoretical models to be used in financial management and how to apply quantitative and statistical methods. 3 4 It teaches how to interpret the findings obtained by the application of theoretical models, quantitative and statistical methods used in financial management. 3 5 Determines the appropriate methods to solve the problems encountered in business. 5 6 Enables financial organizations to reach the most appropriate conclusion with an accurate analysis of the basic financial statements. 5 7 It encourages to take responsibility individually and/or in a team, to lead and to work effectively. 5 8 Is aware of the need for lifelong learning, keeps track of the latest developments in the field and constantly develops professional knowledge and skills . 5 9 It teaches to exploit different sources in a new field in accordance with academic rules, to synthesize and effectively present the information obtained. 5 10 It supports the use of Turkish and at least one foreign language in accordance with the requirements of academic and working life. 4 11 Questions the methods of traditional approach; develops and implements new approaches when needed. 5 12 Identifies the most appropriate approach to financial management by taking into account the goals and objectives of the banking sector, its size, resources, culture and objectives. 5 13 By introducing comprehensive information about Capital Markets, their tools and institutions, it helps the person to utilize his comprehensive knowledge about BIST and the World Stock Exchanges in the best way in the field. 4 * Contribution levels are between 0 (not) and 5 (maximum).   Student Workload - ECTS Works Number Time (Hour) Total Workload (Hour) Course Related Works     Class Time (Exam weeks are excluded) 14 3 42     Out of Class Study (Preliminary Work, Practice) 14 6 84 Assesment Related Works     Homeworks, Projects, Others 0 0 0     Mid-term Exams (Written, Oral, etc.) 1 1 1     Final Exam 1 1 1 Total Workload: 128 Total Workload / 25 (h): 5.12 ECTS Credit: 5