Course Organisation

Organisation and Content

Lecture I – 20/04/2027 – Introduction to Commercial Banking I:

The banking business model;
Balance sheet and P&L;
Ethics, conduct and customer service;
Client relationship management, Loan RMs; Deposit / Funding RMs
Key performance metrics, RAROC;
Expectations of the regulator

Lecturer: Professor Moorad Choudhry

Reading: Core text, chapters 1, 2

Lecture II – 27/04/2027 – Introduction to Commercial Banking II:

Banking loan and deposit products;
FX, reference rates, net interest income and net interest margin;
Money market and capital market instruments

Lecturer: Professor Chris Westcott

Reading: Core text, chapters 1, 4, 6

Lecture III – 04/05/2027 – Bank risk management:

Risk management framework (RMF) and risk appetite statement (RAS);
Key risk indicators (KRIs)
Credit risk;
Market risk;
Operational risk;
ALCO MI pack

Lecturer: Malgorzata Tynecka

Reading: Core text, chapters 18, 9

Lecture IV – 11/05/2027 – Bank asset-liability management I:

ALM and traditional gap analysis
Yield curve;
Template ALM policy
Treasury operating model;
Liquidity adequacy;
Liquidity risk management, liquidity risk indicators;
ALCO governance framework and agenda

Lecturer: Professor Chris Westcott

Reading: Core text, chapters 5, 8, 11

Issue ALCO MI KRI metrics and confirm assignment at end of lecture

Lecture V – 18/05/2027 – Bank asset-liability management II:

Basel capital adequacy rules;
Capital management;
ICAAP principles
Banking book market risk (interest-rate risk and FX risk) management

Lecturer: Professor Chris Westcott

Reading: Core text, chapters 3, 7, 16

Lecture VI – 25/05/2027 – Governance good-practice principles:

Governance committee structure;
Senior executive roles and responsibilities;
Risk culture
Past bank failures: lessons learned
Bringing together all risk types under effective governance

Lecturer: Amit Bansal

Reading: Core text, chapter 17

Examination – 08/06/2027 – Online examination

Lecture Seminar and Q&A

At the end of each lecture there will be a 30-minute seminar session during which students and lecturer will discuss the topics raised during the lecture, issues concerning the previous lecture, and engage in group Q&A.

Course Reading

Choudhry, M., The Principles of Banking, 2^nd edition, Singapore: John Wiley & Sons 2012, 2023
(This title is designated the “Core Text” and will be supplied as an e-book to all students)
Choudhry, M., Moorad Choudhry Anthology, Singapore: John Wiley & Sons 2018
Financial Times Guide to Banking, The Financial Times Series, 2014