NATIONAL ECONOMICS UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

SCHOOL OF BANKING AND FINANCE Independence – Freedom – Happiness

------------------------- ----------------------------

SYLLABUS
1. MODULE PROFILE
Course Name: COMMERCIAL BANKING
Course code: NHTM1121 Credit: 3
2. ACADEMIC RESPONSIBILITY
Faculty/ Institute: School of Banking and Finance Subject: Commercial Banking
3. COURSE PREREQUISITES
Theory of Money, Banking and Financial Market
4. COURSE CONTENT
The banking industry plays an important role in our lives and careers. The services they offer
are becoming globalized and most of financial service providers are growing quickly. A
possible significant career opportunity is represented in the sector. This module covers issues
relating to theories and practice of bank services. The topics are divided into six broad parts
or blocks comprising: Part 1. Overview of the banking sector; Part 2. Financial Statements of
Banks; Part 3. Managing and pricing deposit services; Part 4. Lending policies and
procedures: managing credit risks; Part 5. Lending to business firms and pricing business
loans; Part 6. Consumer loans, credit cards and real estate lending. The purpose of this
course is to provide students with understanding of banking issues with specific focus on
overview of commercial banks, its financial services, such as mobilizing deposit and lending,
and risk management in banking.
5. SUMMARY OF CHAPTERS
Chapter 1. Overview of the banking sector
This chapter studies the history and development of banking sector and specific definitions
of commercial banks and other financial institutions. In addition, financial services offered
by commercial banks are discussed in this chapter. To understand the banking operations,
students will investigate the balance sheet of a commercial bank. The history of Vietnam
Banking system is also mentioned in this chapter.

1
Chapter 2: Financial Statements of Banks
The purpose of this chapter is to acquaint the reader with the content, structure and purpose
of bank financial statements and to help managers understand how information from bank
financial statements can be used as tools to reveal how well their banks are performing.
Chapter 3. Managing and pricing deposit services
This chapter mentions depository services offered by commercial banks. They are demand
deposit, term deposit, saving deposit and funds from issuing valuable papers. Moreover, the
issue regarding pricing deposit services are discussed in this chapter, namely simple interest,
compound interest, effective interest rate, effective annual rate.
Chapter 4. Lending policies and procedures: managing credit risks
The purpose of this chapter is to learn why sound lending policies are important to banks and
other lenders and the public they serve and how to spot and deal with problem loans when
they appear in an institution’s portfolio. Additionally, the general credit procedure will be
introduced for students to understand the process of offering loans to customers in the
economy.
The key topics are: Types of Loans Banks Make; Factors Affecting the Mix of Loans Made;
Regulation of Lending; Creating a Written Loan Policy; Steps in the Lending Process; Loan
Review and Loan Workouts.
Chapter 5. Lending to business firms and pricing business loans
The purpose of this chapter is to explore how bankers can respond to a business customer
seeking a loan and to reveal the factors they must consider in evaluating a business loan
request. In addition, we explore the different methods used today to price business loans and
to evaluate the strengths and weaknesses of these pricing methods for achieving a financial
institution’s goals.
The key topics in this chapter are types of business loans; analysing business loan requests;
collateral and contingent liabilities; sources and uses of business funds; pricing business
loans and customer profitability analysis.
Chapter 6. Consumer loans, credit cards and real estate lending
This chapter describes consumer loans, credit cards and real estate lending to consumers in
the economy. Students can learn about the many types of loans lenders make to consumers
(individuals and families) and to real estate borrowers and to understand the factors that
influence the profitability and risk of consumer and real estate loans. In addition, the chapter
examines how consumer and real estate loan rates may be determined and the options a loan
officer has today in pricing loans extended to individuals and families.
2
The key topics in this chapter are types of loans for individuals and families; unique
characteristics of consumer loans; evaluating a consumer loan request; credit cards and credit
scoring; disclosure rules and discrimination and loan pricing and refinancing.

6. COURSE OBJECTIVES
Upon completion of this course, students will be able to understand:

 The reasons why banks exist, the main services they offer, recent trends impacting on
business areas, types of banking firms and the differences between domestic and
international banking business.
 The reasons why banks are so heavily regulated and why adequate solvency and
liquidity are critical to maintaining a safe and sound banking system.
 The main components of banks’ balance sheet and income statements, off-balance
sheet activity.
 How banks manage their on- and off-balance sheet positions and the main risks faced
in banking operations.
 The main sources deposits and how banks price their funds.
 The importance of lending policy and procedures, the different types of loans from
banks and their competitors.
 How to analyze loan request from both corporate and individual customers and price
the loans.
 The importance of risk management in banking, especially when interest rates change
over time.
 To apply these skills to the full spectrum of banking operations through classroom
study, integrated team projects and independent research.
 To present modern banking issues and current debates with various topics, including
lending pricing, reserve management, and credit rating among many other themes.
 To develop the students' transferable skills including communication (oral and
written), team work, decision making, economic and risk analysis, time and project
management, and work ethics.
7. COURSE SCHEDULE
Including Note
Number of Homework,
No Chapter Theor
Period Exam,
y
Presentation

3
 1 Chapter 1: Overview of the 7 6 1
banking sector
2 Chapter 2: Financial 7 5 2
Statements of Bank
3 Chapter 3: Managing and 7 5 2
pricing deposit services
4 Chapter 4: Lending policies 7 5 2
and procedures: managing
credit risks
5 Chapter 5: Lending to 7 5 2
business firms and pricing
business loans
6 Chapter 6: Consumer loans, 7 5 2
credit cards and real estate
lending
7 Review 3 2 1
Total 45 33 12

8. SYLLABUS
Week Chapter Activity Note
1 1 Lecture + Discussion
2 1 Lecture + Discussion
3 2 Lecture + Discussion
4 2 Lecture + Discussion
5 3 Lecture + Discussion
6 3 Lecture + Discussion
7 4 Lecture + Discussion
8 4 Lecture + Discussion
9 Mid-term Lecture + Discussion
10 5 Lecture + Discussion
11 5 Lecture + Discussion

4
 12 6 Lecture + Discussion
13 6 Lecture + Discussion

9. REQUIRED TEXTBOOK
- Peter S. Rose and Sylvia C. Hudgins (2016), Bank Management and Financial Services,
McGraw-Hill Irwin Press, nineth Edition
10. OTHER REQUIRED MATERIALS & INFORMATION
- Joel Bessis (2011), Risk management in Banking, John Wiley & Sons, third edition.

- Casu, B., C. Girardone, and P. Molyneux (2006), Introduction to Banking, Harlow: FT

Prentice Hall.

- Timothy W. Koch, S. Scott MacDonald (2009), Bank Management, Eighth Edition

- Howells, P. and K. Bain (2008), The Economics of Money, Banking, and Finance. 4th
Edition. Harlow: FT Prentice Hall.

- Heffernan, S. (2005) Modern Banking Theory and Practice, Chichester: John Wiley.

- Journal of Banking, Journal of Finance (Vietnam), Wall Street Journal; Business Week or
any other equivalent financial journal
- Related websites, as www.sbv.org.vn, www.vcb.com.vn, www.vneconomy.com.vn, etc.
11. COURSE REQUIREMENT & GRADING POLICY
- Students are required to attend at least 75% of class hours. Extra credit will be given for
frequent attendance.
- There will be quizzes during the course. The quizzes are meant to prepare for the exams
and add extra credit to the final grade at the end of the semester of students.
- Students will be grouped for class presentation. In each presentation, there are one group of
presenters and one group of defenders. The defence group is mainly responsible for
commenting and questioning.
 A PowerPoint Presentation is to be sent to lecturers at least 03 days before the
presentation day. Final presentation should be sent to class e-mail at least 01 day
before the presentation day.
 Presentation should consist of
(1) News brief (domestic and international banking news), and
(2) Main topic presentation
5
 (3) Kahoot games
 The whole presenting and defending group is to attend class well on time.
- Final grade is calculated by the below structure:
Criteria Weight Description
Individual works 10% Students should attend at least 75% of class hours. Extra
credit will be given for frequent attendance. However,
activeness in class discussion is the most important.
Group works 20% Students will be grouped for weekly presentation. One
group is the presenter, while the other group acts as the
defender.
Mid-term exam 20% This is a 60 min open-book exam.
Final exam 50% This is a 90 min closed-book exam.

Hanoi, Aug 5th, 2021

Lecturer

Tran Phuoc Huy