Bank Management

Management Accounting in Banks

Integrated course, 3.00 ECTS

 

Course content

This courses introduced methods of performance and risk control within a bank. These are fundamental to monitoring and controlling respective business processes. A focus is set on he computation of key figures, and their decomposition with regards to single business units.

The core contents of this course include:
[1] Functions and structure of a bank's accounting system;
[2] Measuring performance, market-rate method;
[3] Key indicators for banks (focus: credit and deposit business);
[4] Break-even analysis in banks;
[5] Risk control (incl. the bank's VaR, economic capital);
[6] Performance measures for banks; profit/return control: RoRAC, RoRWA, RoI;
[7] Methods of risk/capital allocation; breakdown of a bank's performance measures.
Optional contents can include:
[8] Bank accounting systems: solutions, architecture;
[9] Measuring performance in AM, trading and advisory.

Learning outcomes

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

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