Dilla University Department of Accounting & Finance July, 2016

Bank Principles, Practices & Procedures

Dilla University
Business and Economics
Department of Accounting and Finance

Objective of the Upon the successful completion of this module, students should be able to:
module • Identify, measure, and price the various risks faced by the companies
• Perform commercial banking procedures
• Explain the role and functions of financial institutions, and the related
regulation and supervision
• Explain the role of financial markets for the well function of the
economy

Course Information
Course Number AcFn 342
Course Title Bank principles Practices & Procedures
Degree Program BA Degree in Accounting and Finance
Lecturer Misraku Molla (Msc)
Contact Hours 3
(per week)
Course delivery Semi-Block base
Course Objectives At the end of this course students will be able to;
& Competences to • Understand those different services provided by banks for their
be Acquired customers
• Understand what basic will be performed by Central Bank
• Know the responsibility of the bank personal which serves a bank in
different position
• Understand how to manage the asset &liability of the bank
• Enhance the knowledge about the function of the bank to the society
• Differentiate the balance sheet of the bank form other firms
• Identify items should be included in a loan policy
• Know the sequence of information flow within the bank
• Identify the basic operational differences among Development,
Investment and Commercial Banks
• What basic service be provided by Development and Investment
Banks

1|Page by Misraku M.
Dilla University Department of Accounting & Finance July, 2016

Bank Principles, Practices & Procedures

Course This course is designed to quaint students with the basic principle procedure
Description and practice of banks. Throughout this course emphasis will be given to r
elation ship between Banker and customer negotiable (credit) instruments
Banking industry and formulation of bank loan policy specially opening and
crossing of accounts and rule of negotiable instrument s are given detail
discussion so as to equipment students with the necessary regulation of
bank for such instrument and accounts.
WEEKS Course Contents
WEEK 1 1. An over view of banks and their function
1.1. Introduction
1.2. Meaning of Banking
1.3. Types of Banking
1.4. Banking issues in 21stcentury
WEEK 2 2. Central Banking
2.1. Introduction
2.2. Functions of Central Bank
WEEK 3-4 3. Commercial Banking
3.1. Introduction
3.2. Function of Commercial
3.3. Credit Creation
3.4. Balance Sheet of Banks
WEEK 5 4. Bank Customer Relationship
4.1. Introduction
4.2. General vs. Special Relationship
WEEK 6 5. Bank Services
5.1. Opening an Account
5.2. The Paying Banker
5.3. Collecting Banker
5.4. Loan and Advances
5.5. Letter of Credit
WEEK 7 & 8 6. Development and Investment Banking
6.1. Development Banking and Its functions
6.2. Investment Banking Meaning and Functions
6.3. Cooperative Banking and Its Functions

Teaching & The teaching and learning methodology include lecturing, discussions,
Learning problem solving, and analysis. Take-home assignment will be given at the
Methods/strategy end of each chapter for submission within a week. Solution to the
assignments will be given once assignments are collected. Cases with local
relevance will also be given for each chapter for group of students to present
in a class room. The full and active participation of students is highly
encouraged.
Assessment/
Evaluation

2|Page by Misraku M.
Dilla University Department of Accounting & Finance July, 2016

Bank Principles, Practices & Procedures

The evaluation scheme will be as follows:

Test Quiz1 Project Final Total
1
20% 10% 20% 50% 100%
Work load in hours
Hours Required
To
Self- Hr
Lectures Lab Assessments Tutorials Studies Assignment Advising
48 - 10 12 27 - - 97

Roles of the He will come to the class regularly on time and deliver the lecture in a well-
Instructor organized manner. Besides, at the end of each class he gives reading
assignment for the next class. He will make sure that proper assessments
are given. He/she is also responsible to give feedback for each assessment.

Roles of the The success of this course depends on the students’ individual and collective
students contribution to the class discussions. Students are expected to participate
voluntarily, or will be called upon, to contribute to set exercises and
problems. Students are also expected to read the assigned readings and
prepare the cases before each class so that they could contribute effectively
to class discussions. Students must attempt assignments by their own.
Proficiency in this course comes from individual knowledge and
understanding. Copying the works of others is considered as serious offence
and leads to disciplinary actions.
Text and reference  Fabozzi, Frank J, Franco Modigliani, Frank J. Jones. Financial Institutions
books and Markets. 3rd Edition, USA
 Saunders, Anthony and Marcia Millon Cornett. Financial markets and
institutions
 Any banking and related books

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Dilla University Department of Accounting & Finance July, 2016

Bank Principles, Practices & Procedures

Project work Titles

1. The development of banking industry in Ethiopia and its contribution to economic

development (from imperial regime to today’s government)
2. Profitability of banking industry and its determinants in Ethiopia; Before and After
financial liberalization
3. Analysis of Potential risks related with banking industry in Ethiopia.
4. Comparative Analysis of banking industry in Ethiopian with Microfinance and insurance
industries (A multidimensional analysis)
5. Service provided by banking industry in Ethiopia; Outreach, Quality and Diversity

Notes to be remember;

1. Last date for submission and presentation will be before one week the final exam going
to held on.
2. Group members shall not be exceeds than six students
3. It has minimum of 20 points. However, when time problem is happen the test from 10
point will be cancelled and this project paper value will increase to 30 points.
4. Maximum page for one project paper shall not be exceeds than 35 pages type in
computer.
5. You must start this project work actually immediate to the start of this course.

Good time and luck!!!

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