The institute of Bankers, Bangladesh (IBB) published lecture plan for the subject Management of Financial Institutions (MFI) under the coaching class of Exam December 2018. Lecture plan of Management of Financial Institutions (MFI) is given below:

• Course Title : Management of Financial Institutions (MFI)
• Course Code : MFI-604
• Class Schedule : From 6:30 PM to 8:30 PM
• Course Teacher :Md. NurulHoque

• Contact details : Phone no:01711971494, 01755620481, 9332302 (R) , Email:dgmnurulhoque@yahoo.com

• Text Book: Fundamentals of Financial Institutions Management- 5^th Edition. International Students Version - Cornett M. and Anthony Saunders.

• Reference Book : 1) Lecture Sheet 2) Core Risk Management Guideline of BB 3) The Economics of Money, Banking and Financial Markets by Harper Collins

• Course Objectives : 

• Lecture-1-2: Introduction to Financial Institutions:

• An overview of banks and Non-banks system and their services, impact of Govt. policy and regulation.
• International sanction; UN, UNSCR,EU,OFAC etc. 
• Financial statement of financial institution.
• Financial intermediaries and advantages enjoyed by market participants.
• NBFIs and it’sServices and use of fund; role of NBFIs in economy. 
• Various concept of electronic banking.
• Important role of modern banking,bankers-customers relations; Rights, obligations, lien, banker’s lien and garnishee order, lender vs service provider.
• Islamic banking and Insurance; nature, role andrequirement.
• Financial intermediaries and financial spread sheets.
• Liquidity measurement and management, unhealthy competition & non-performing loan.
• Financial markets, financial instruments; money market and capital markets; area, operations and role in financial sectors.
• Recent financial scams and its effects in banking sectors.
• Recent trend, scenario,problems, new products/services and development in BFIs and NBFIs.
• Need to know-SME financing ,Green banking, Agent banking& mobile financial services,unitvs branch banking; plastic money, debit and credit card, KYC-KYE, CDD-EDD, IPs, PEPs, CTR, STR, SAR, TP, Walkin customers, PPI, NID, legacy accounts, type of deposit accounts, investment company; types & functions, role of BB, need of more private bank, new interest rate policy, funded & non-funded loan, payment in due course, MICR, 

• Lecture-3-4:Assets Liability Management (ALM) Techniques:

• Risk components and Core risk; management techniques ALM objectives.
• ALM techniques, targets, indicators, strategic and weakness. 
• Balance sheet analysis- Assets and Liability and equity; off balance sheet liabilities.
• Assets liability management policies- balance sheet and Cash flow analysis, maturity mismatch, liquidity contingency plan and regulatory compliance.
• Market risk, capital adequacy under BASEL approach.
• Compliances of money laundering law and regulations, money laundering Act-2012. FATF recommendations.
• Off balance sheet portfolio item.
• Need to know-CCU, CAMLCO, BAMLCO, BFIU, STR, SAR, AML/CFT, KYC, KYE, CTR, STR.
• Business and market risk: Identification, measurement, mitigation and management of risk.
• Adjustment of risk and income on investment; Investment decision- capital budgeting, capital rationing, liquidity and AD ratio management, effect on performance of FIs.
• Loan syndication, borrower selection and deposit mixing,

• Lecture -5-6: Managing Sources of Fund:

• Fund and Various  sources fund:
• Balance sheet sources
• Off balance sheet sources; contract-forward and future, option- call and put option, SWAPS, Securitization and lone sale. 
• Derivative sources
• Securitization and loan sale.

• Management of  capital adequacy under BASEL-1,11&111:

1. Minimum capital requirement (MCR)
2. Adequate capital and need for capital adequacy
3. Core capital 
4. Supplementary capital
5. Addl. Supplementary capital 
6. Capital adequacy as BASEL approach,pillar-1,2&3
7. Cost of fund and implication of interest rate(single digit).
8. Credit risk, market risk and operational risk.
9. Regulatory capital; Tier-1 capital, Tier-2 capital, Tier- 3 capital.
10. Basel -11 vs Basel-111. 

• Lecture-7-8 :Profitability,Productivityand consumer :

• Measuring and evaluation of financial performances
• Financial statement analysis; balance sheet, cash flow, and liquidity analysis.
•  Reformulating analysis: adjustment and measurement of errors; financial ratio analysis.
•  Objectives and importance of FSA.
•  Tools of financial analysis
•  Financial forecasting
•  Determine the profitability; profitability ratios-ROA,ROI, ROE,ROS,GPM,OPM and EPS, NIM, NOM, 
• Ensuring tools; components, importance; CAMELS rating, credit risk grading (CRG), early alert warning by BB, Stress testing, self-assessment and audit.
• Need to know- Non-performing loan & effect on profitability,

• Risk and uncertainty in BFIs and NBFIs.
• Core risk; Guideline of Bangladesh bank; Policy guideline and procedural guideline.
• Risk components.
• Risk management; Identification, measurement, control, mitigation and monitoring.
• Evaluation of risk: Financial risk,business risk, management risk, security and relationship risk.

• Risk control techniques: CAMELS rating, credit risk Grading, implementation of BASELapproach,fund flow analysis, credit rating and SWOT analysis. 
• Loan classification and provisioning; nonperforming assets.
• Liquidity and liability management.
• Loan portfolio management, selection of business and borrower, sanction, disbursement and monitoring of loan.  
• Core risk, market risk, operational risk and reputation risk.
• Need to know- IPs & PEPs, KYC & KYE, CDD& EDD, CTR & STR, Independent testing procedures and self-assessment report.

• Lecture: 11-12:Islamic banking and  insurance business in Bangladesh:

• Islamic banking system.
• Insurance; life, fire and marine insurance.
• Overview on course and discussion on importance issues for examination.