Integrated course, 5.00 ECTS
The LV presents the instruments of profitability and risk controlling of a bank, which form an essential basis for monitoring and controlling business processes. The focus here is on the calculation of bank-specific ratios and their decomposition to the individual business areas. At the quantitative level, the focus is on risk-adjusted earnings management.
The core contents comprise:
 Functions and structure of the bank controlling system;
 Results analysis, market interest method;
 Overview of key figures in the banking sector with a focus on lending and custody business;
 Contribution margin accounting in the bank;
5] Risk controlling (incl. overall bank VaR, economic capital)
 Performance measurement in the bank; earnings/return controlling: RoRAC, RoRWA, RoI;
 Procedures for risk and capital allocation; decomposition of key bank figures;
 Objectives of credit institutions, business models of banks, risk-adjusted, profit-oriented bank management;
 Linking of liquidity, risk and capital management into a value-oriented overall bank management;
 Strategic selection of product portfolio and sales channels; addition of products from outside the industry;
 Management responsibility; management decision-making powers; role of capital providers;
The course strengthens the holistic understanding competence and thus the understanding of interdependencies in the banking sector, which is central in practice at the corporate management level, but also in the evaluation of individual business areas or divisions. The concrete implementation of a management model for a bank, taking into account risk and earnings aspects, is to be computer-supported using MS Excel, thus strengthening the methodological competence of the students.
Recommended or required reading and other learning resources / tools
References: Bartetzky (2012): Praxis der Gesamtbanksteuerung, Schäffer-Poeschel. Botsis et al (2013): Kennzahlen und Kennzahlensysteme für Banken, Springer. Choudry (2011): An Introduction to Banking, Wiley. Daheim/Thiele (2011): 100 Bankkennzahlen, cometis. Enthofer/Haas (eds./2011): Handbuch Treasury, Linde. Hartmann-Wendels et al (2010): Bankbetriebslehre, Springer. Horsch et al (2011): Wertorientierte Banksteuerung I und II, Frankfurt School V. Koch/McDonald (2009): Bank Management, Cengage Learning. Rolfes (2008): Gesamtbanksteuerung, Schäffer-Poeschel. Schierenbeck (2012): Ertragsorientiertes Bankmanagement, Band 1 bis 3, Gabler. Wernz (2012): Banksteuerung und Risikomanagement, Springer.
Academic journals: Die Bank, Bankarchiv, Bankmagazn, Journal of Banking and Finance.
Mode of delivery
3 ECTS: ILV
Prerequisites and co-requisites
Assessment methods and criteria
ILV: final examination, including immanent assessment in the practice part