Course objective is to provide necessary knowledge related with financial management that has been important especially for the last 30 years. From the banks point of view asset and liability managemet has been central issue of financial management. Asset management consantrated on loans while liability management consantrated on deposits. Banks have term structure differencies between deposits and loans that cause interest rate risk. On the other hand, there are exchange rate risks on fx loans. Those type of risks have made the risk management important for banks. In this framework, we aim to explain risk and types of risks and asset - liability management of the banks in this lecture.
* This course will be taught face to face in the 2021-2022 Fall Academic Semester. In the CATs system, it will be supported by asynchronous and/or (when necessary) synchronously enriched digital education method.
Lecture, Discussion
Principle Sources
Saltoğlu, Burak, “Finansal Risk Yönetimi”, Mutlu Basım Yayın, İstanbul, 2020.
Altay, Erdinç. “Bankacılıkta Risk, Piyasa Riski, Kredi Riski ve Operasyonel Riskin Ölçümü ve Yönetimi”, Derin Yayınları, 2014.
“İşletmelerde Risk Yönetimi, Türkiye, Almanya ve Avusturya Karşılaştırması”, Derleyenler: Stephan Schönıng, E.Handan Sümer Göğüş, Helmut Pernsteiner, İstanbul Bilgi Üniversitesi Yayınları, 2018.
Yazıcı, Mehmet. “İşletmelerde Risk Yönetimi ve Karar Verme” Beta Yayınları, 2018.
Berk, N, “Finansal Yönetim”, Türkmen Kitabevi, 10.Baskı, İstanbul, 2011.
Course Schedules
Week
Contents
Learning Methods
1. Week
General Framework - Introduction - Financial Risk Definition and Concepts
Lecture, Discussion
2. Week
Macro Economic Analysis and Sector Analysis Financial Institutions and Risks in Financial Institutions
Lecture, Discussion
3. Week
Bank Balance Sheet - Assets and Liabilities Items
Lecture, Discussion
4. Week
Targets of Fund Management in Banking
Lecture, Discussion
5. Week
Funding Sources of Banks
Lecture, Discussion
6. Week
Banking Crises - 1980, 1994, 2000, 2001, 2008
Lecture, Discussion
7. Week
Midterm Exams Week
Assessment of Homeworks
8. Week
Types of Risk in Banking
Lecture, Discussion
9. Week
Risk Management Process - Credit Risk, Liquidity Risk
Lecture, Discussion
10. Week
Market Risk, Interest Risk, Exchange Rate Risk
Lecture, Discussion
11. Week
Capital Adequacy Risk, Leverage
Lecture, Discussion
12. Week
Operational Risk
Lecture, Discussion
13. Week
BIS and Basel I-II-III-IV - Banking Sector Risk Analysis
Lecture, Discussion
14. Week
Hedging - Risk Management of Derivative Instruments
Lecture, Discussion
15. Week
Final Exam
Final Exam
16. Week
Final Exam
17. Week
Final Exam
Assessments
Evaluation tools
Quantity
Weight(%)
Homework / Term Projects / Presentations
2
40
Final Exam
1
60
Program Outcomes
PO-1
To know the responsibility about the position of their job in the field of banks and insurance companies.
PO-2
To explain the importance of research and development issues of their related field by means of individual or group studies.
PO-3
To understand the importance of follow-up the legislation in the field of profession.
PO-4
To express the importance of the banking for national economy and businesses.
PO-5
To do work of their related field by using computer. Store information and using stored information.
PO-6
To take responsibility in the management levels.
PO-7
Finding practical solutions against the problems to business activities and giving the right decision.
PO-8
Assuming responsibility in finance and banking sector and after providing legal terms opened his/her own office on behalf of, train qualified manpower.
PO-9
Analysis and interpretation balance sheet and income statement of a business.
PO-10
To make Bank and insurance accounting.
PO-11
Equipped in terms of customer relations and human resources
PO-12
To receive general information in banking and insurance and be informed about the bank and insurance law.
PO-13
To know camputer programmes well about of the profession.
PO-14
To have knowledge about professional English in banking and insurance.
Learning Outcomes
LO-1
Learns the Turkish banking system and its basic sizes, recognizes the risks faced by the banking system.
LO-2
Learns the concept of risk and basic risk types.
LO-3
Understands how to manage the identified risks. Describes the risk management practices and rules introduced by Basel II, comprehend the latest developments defined in Basel III and Basel IV.
LO-4
Counts and defines foreign fund sources of banks.
LO-5
Explains the risk management practices in the Turkish banking system and indicate the working styles of asset-liability committees.
