Commercial Banking Operations syllabus

Commercial Banking Operations

• 1 Introduction to Banking Industry in Nepal (6 LHs)

  • Banks and financial institutions: meaning and necessity
  • Nepalese financial system
  • Banking versus other business
  • Commercial bank concept, management and history in Nepal
  • Functions and regulatory authority
• 2 Risks in Banking Business (6 LHs)

  • Risk concept and commercial bank risk types
  • Interest rate, market, credit, off-balance-sheet and foreign exchange risks
  • Country, technology, operational, liquidity and insolvency risks
  • Refinancing, reinvestment and market-value risk
  • Firm-specific and systematic credit risk
  • Measures to reduce technology risk in Nepalese banks
• 3 Deposit Mobilization (7 LHs)

  • Bank deposits: meaning, nature and types
  • Account opening, KYC and dormant accounts
  • Account closing and card services
  • Deposit marketing and customer care
  • Deposit insurance and NRB directives
• 4 Bank Credit Management (8 LHs)

  • Bank credit concept and loan types
  • Credit process, monitoring and supervision
  • Credit recovery, marketing and administration
  • Collateral, margin and valuation
  • Loan classification and allowances
  • Credit risk management, insurance and NRB directives
• 5 Cash Operation (4 LHs)

  • Cash management and vault security
  • Cash insurance and cash counter
  • Cashier responsibilities
  • Clearing and electronic clearing
  • Intra-bank and interbank transfers
• 6 Agency Services (4 LHs)

  • Fund transfer and remittance
  • Utility payments and advisory services
  • Standing orders
  • Cheque and bill clearing
• 7 Trade Finance (4 LHs)

  • Trade finance concept
  • Letters of credit: parties, types, opening procedures and responsibilities
  • Pre- and post-shipment export finance
  • Foreign currency loans
• 8 Bank and Customer Relationship (4 LHs)

  • Legal relationships: trustee-beneficiary, agent-principal and debtor-creditor
  • Special customer types
  • Anti-money laundering and KYC
• 9 Electronic Banking Services (5 LHs)

  • E-banking concept
  • Internet, branchless and mobile banking
  • ABBS and ATM
  • FinTech opportunities, threats and challenges