Treasury and Liquidity Management in Banks
Integrated course, 3.00 ECTS
This course discusses various aspects of the treasury and liquidity management in banks. Particular attention is given to risk assessment, regulatory requirements and available financial instruments.
The core contents of the course include:
 Liquidity management for banks;
 Bank deposits;
 Risks from term transformation; sun spots and bank runs; liquidity measures: liquidity coverage ratio (LCR), net stable funding ratio (NSFR);
 Regulatory liquidity requirements;
 Money market/investment market instruments: securitization, repos, CP, ABS, CDO, ECB instruments, notes/bonds, convertibles, hybrids.
Optional contents can include:
 Issuance of bank bonds (treasury); information requirements;
 Bank liquidity and financial crises: a critical discussion;
 Settlement of financial market trades and liquidity.
Successful participants in this module have detailed knowledge of the methods and tools of bank management. They understand the general framework in which a bank operates and challenges in liquidity, risk and capital management. In particular they are able to apply their understanding of these challenges in the context of bank management at the group level. This enables the understanding of a bank's value creation process which will serves as basis during the following modules, for example, when assessing products, sales strategies and controlling.
Post successful completion of this module, students have competence regarding the integrated understanding of the banking sector. This can be used in practice when managing certain business areas within a bank, or when evaluation business units or sectors. A group projects offers students an opportunity to further develop their social, team and presentation skills.
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
Modules IFG, FIR, VBU, AUR, QFM (1, 2, 3, 7, 8)
Assessment methods and criteria
ILV: final exam, assessment of active course participation