Banking and Financial Institutions Course

Lesson 1 • Core Banking Business Model

Explains how banks earn revenue through interest spreads, fees, and off-balance-sheet activities. Grounds students in the economic logic of banking.

Lesson 2 • Overview of Financial Systems

Maps the structure of financial systems including markets, intermediaries, and instruments. Connects individual institutions to the broader economic ecosystem.

Lesson 3 • The Nature and Functions of Money

Covers money's origins, properties, and economic functions. Provides the conceptual baseline for understanding why banks and financial institutions exist.

Lesson 1 • Income Statement Analysis

Examines interest income, non-interest income, provisions, and net income. Links revenue and cost drivers to the business model introduced in Chapter 1.

Lesson 2 • Structure of the Bank Balance Sheet

Breaks down asset and liability categories unique to banks. Establishes the accounting framework needed for all financial analysis in later chapters.

Lesson 3 • Key Financial Ratios for Banks

Introduces return on assets, return on equity, efficiency ratio, and net interest margin. Equips students to benchmark performance across institutions.

Lesson 1 • Wholesale and Institutional Funding

Analyzes interbank borrowing, repurchase agreements, and commercial paper as funding tools. Shows how banks supplement retail deposits with market-based sources.

Lesson 2 • Funding Mix and Cost of Funds

Teaches how to calculate blended cost of funds and optimize the funding mix. Directly supports asset-liability management concepts in the next chapter.

Lesson 3 • Deposit Insurance and Guarantees

Explains deposit protection schemes, coverage limits, and moral hazard implications. Demonstrates how guarantees shape depositor behavior and bank risk-taking.

Lesson 1 • Commercial and Corporate Lending

Examines working capital, term loans, and project finance for business borrowers. Extends credit analysis skills to financial statement-based corporate assessment.

Lesson 2 • Loan Pricing and Structuring

Teaches risk-based pricing, fee structures, and collateral arrangements. Connects credit risk assessment to the financial terms of a loan agreement.

Lesson 3 • Principles of Sound Lending

Introduces the five Cs of credit and the lending policy framework. Establishes the decision criteria applied throughout all credit analysis sections.

Lesson 4 • Consumer and Retail Lending

Covers mortgage, auto, personal, and credit card loan structures and underwriting. Applies the five Cs framework to individual borrower assessment.

Lesson 1 • Contingency Funding Planning

Teaches construction of contingency funding plans and stress testing for liquidity. Prepares students to respond to funding crises before they escalate.

Lesson 2 • Interest Rate Risk Fundamentals

Defines repricing risk, yield curve risk, and basis risk in a banking context. Provides the conceptual foundation for all asset-liability management tools.

Lesson 3 • Liquidity Risk Management

Covers liquidity risk sources, measurement metrics, and buffer management. Directly links funding management from Chapter 3 to operational resilience.

Lesson 1 • Credit Risk Measurement and Models

Covers probability of default, loss given default, and expected loss models. Builds quantitative skills for credit portfolio management and capital allocation.

Lesson 2 • Enterprise Risk Governance

Covers the three lines of defense, risk appetite statements, and board oversight. Integrates all risk types into a coherent governance and reporting structure.

Lesson 3 • Operational Risk and Controls

Examines loss event data, key risk indicators, and control self-assessments. Connects risk identification to practical mitigation and governance structures.

Lesson 4 • Risk Identification and Classification

Catalogs credit, market, operational, liquidity, and reputational risks in banking. Establishes the taxonomy that structures the entire risk management framework.

Lesson 1 • Global Regulatory Architecture

Maps the roles of international standard-setters, national supervisors, and resolution authorities. Provides the institutional context for all specific regulatory requirements.

Lesson 2 • Anti-Money Laundering Compliance

Covers customer due diligence, transaction monitoring, and suspicious activity reporting. Equips students to build and evaluate an effective AML compliance program.

Lesson 3 • Regulatory Reporting and Examination

Teaches the structure of supervisory reporting, examination cycles, and remediation. Prepares students to manage regulatory relationships and examination readiness.

Lesson 4 • Prudential Capital Requirements

Details minimum capital ratios, capital buffers, and stress testing requirements. Builds on the capital adequacy concepts introduced in Chapter 2.

Lesson 1 • Business Line Strategy and Profitability

Covers funds transfer pricing, business line P&L, and capital allocation to segments. Connects financial analysis skills to strategic resource allocation decisions.

Lesson 2 • Performance Measurement and Governance

Covers balanced scorecards, executive compensation alignment, and board effectiveness. Integrates risk, financial, and strategic metrics into a unified performance system.

Lesson 3 • Competitive Dynamics in Banking

Analyzes competitive forces, market concentration, and differentiation strategies in banking. Grounds strategic planning in the industry structure students have studied.

Lesson 4 • Mergers, Acquisitions, and Restructuring

Examines bank M&A rationale, valuation methods, and integration challenges. Applies balance sheet and risk knowledge to evaluate deal economics.