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FIN 255: Management of Financial Institutions
- Nature of course: Concentration.
- Lecture Hours: 150.
- Full Marks: 100.
- Pass Marks: 35.
BBS 4th year Management of Financial Institutions Notes PDF
Following are the BBS 4th year Management of Financial Institutions Notes PDF.
Course Objectives:
The course aims to lay the foundation for students on the management of financial institutions by imparting the fundamental concepts and techniques of the operation of financial institutions.
Unit 1: Introduction
Contents:
- Overview of financial institutions.
- Types of financial institutions.
- Role of financial institutions in the economy.
- Risks in financial institutions.
- Development of financial institutions in Nepal.
Also Read: BBS 4th Year Old Questions Paper PDF
Unit 2: Determinants of Interest Rates
Contents:
- Interest rate fundamentals.
- Review of loanable fund theory.
- Movement of interest rates over time.
- Determinants of interest rates for individual securities.
- Inflation, real risk-free rate, default or credit risk, liquidity risk.
Also Read: TU BBS 4th year Syllabus & subjects.
- Special provision or covenants; Term to maturity.
- Term structure of interest rates: unbiased expectation theory, liquidity preference theory, market segmentation theory.
- Forecasting interest rates.
Unit 3: The Central Bank and Monetary Policy LH 15
Contents
- Functions of the central bank.
- Balance sheet of the central bank.
- Monetary tools: Open market operations, the discount rate, and reserve requirements.
- Effects of monetary tools on various 86 economic variables.
Also Read: BBS 4th Year Old Questions Paper PDF
- Money supply versus interest rate targeting: Central bank and monetary policy in Nepal.
Unit 4: Commercial Banks
Contents
- Overview of commercial banks.
- Size and structure of a commercial bank.
- Functions of commercial banks: Financial statements: Balance sheet, off-balance sheet items, other fee-generating activities, statement of profit or loss.
Also Read: BBS 4th Year Old is Gold Pdf.
- Financial statement analysis using a return on equity framework.
- Regulation of commercial banks.
- Capital adequacy regulations of Nepalese commercial banks with reference to Basel III.
Unit 5: Microfinance LH 10
Contents
- Concept of microfinance.
- Microfinance Revolution: Rationale for Growing Microfinance
- Key principles of microfinance; Objectives of microfinance institutions.
- Products and services of microfinance.
Also Read: BBS 4th Year Financial Institutions Important Questions PDF.
- Designing saving and lending products.
- Interpreting financial statements of microfinance institutions.
- Performance evaluation of microfinance institutions.
Unit 6: Saving and Credit Cooperatives LH 20
Contents
- Meaning, types and structure of cooperatives.
- Rationale of growing cooperatives, Key principles of cooperatives, Saving and credit cooperatives.
- Rationale, growth, and structure.
- Products and services of saving and credit cooperatives.
- Interpreting financial statements of saving and credit cooperatives.
- Performance evaluation of saving and credit cooperatives.
Unit 7: Insurance Companies LH 20
- Overview of insurance companies.
- Life insurance companies.
- Types of life insurance companies, Fair value computation of annuity insurance policy.
- Property-casualty insurance companies.
- Types of property-casualty insurance companies.
- Measuring costs and overall profitability of property-casualty companies; Insurance company operations.
- Rate making, underwriting, production, claim settlement, reinsurance, alternative to traditional reinsurance, and investments.
- Financial operations of insurers: Financial statements and performance analysis of life and non-life insurance companies in Nepal.
- Role and functions of Beema Samiti (Insurance Board) in regulating insurance in Nepal.
Unit 8: Investment Companies and Hedge Fund LH 10
Contents
- Overview of investment companies.
- Organizational structure of mutual fund.
- Different types of mutual funds; Net asset value.
- Mutual funds costs and returns.
- Mutual fund balance sheet and recent trends.
- Performance of mutual fund; Mutual funds and their regulations in Nepal.
- Hedge funds: meaning, significance and structure.
Unit 9: Pension Funds LH 10
Contents
- Overview of pension funds; Types of pension funds.
- Defined benefit versus defined contribution pension funds, insured versus non-insured pension funds, private versus public pension funds.
- Retirement benefit calculation using: Flat benefit formula, career average formula, and final pay formula; Return and impact of asset allocation.
- Pension fund regulation and its management practices in Nepal.
- Social security fund in Nepal.
Unit 10: Investment Banks and Securities Firms LH 10
Contents
- Services offered by investment banks and securities firms.
- Securities firms and investment bank activity areas.
- Regulations of investment banking, securities firms, and businesspersons in Nepal.
Other Important Link
a. BBS 4th Year Proposal Sample PDF
b. BBS 4th-year project report pdf
