OLABISI ONABANJO UNIVERSITY, AGO-IWOYE

FACULTY OF ADMINISTRATION AND MANAGEMENT SCIENCES

DEPARTMENT OF BANKING & FINANCE
BFN 212: ELEMENTS OF BANKING
E.O. Adebayo
olufemiadebayo@oouagoiwoye.edu.ng
Grand Floor, FAMS Complex, Main Campus.
Contact: 0803-444-5723
J.A. Obadeyi
obadeyi.james@oouagoiwoye.edu.ng
1st Floor, FAMS Complex, Main Campus
Contact: 0803-356-9575
BFN 212: Elements of Banking (3 Units)
Course Description: The course provides students with basic concept, theories and issues related
to banking. It introduces students to establish principles of banks and non-bank management and
operations in banking sub-sector. It helps students to be exposed to monetary and financial
information so as to help them improve their analytical skills. It covers topics such as meaning and
relevance of money, Nigerian financial system, theory of money, negotiable instruments etc.
Mode of Delivery
Two hours of lecture each week.
Assessment
The final grade for the course will be made up of:
Semester Quiz: 10%
Final Examination: 70%
Class Assignment: 10%
Assignment: 10%
Course Outline
WEEK TOPICS Learning Objectives LECTURER
1 Introduction and Obadeyi
Review of Outline
2 Meaning and At the end of the lecture, the students should be Obadeyi
Relevance of able to understand:
Money a. Evolution of Money
b. Era of spherical Adventure (Anomalism)
c. The Era of subsistence (Autarky or
exchange)
d. The Era of Barter system (Direct exchange)
e. The Era of money exchange community
money
f. The Era of money exchange (Full bodied
money)
g. The Era of paper money
h. The Era of credit money
i. Meaning of Money
j. Functions of Money
k. Primary Functions of Money
l. Secondary functions of Money
m. Contingent functions of Money
n. Other functions of Money
o. Role of Money in the economy

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 p. Static Role of money
q. Dynamic role of money
3 Financial At the end of the lecture, the students should be Obadeyi
Institution and Its able to understand:
Relevance to the a. Meaning of financial institution and its
Economy classification.
b. Nigerian Money Deposit Bank (Commercial
Bank)
c. Other financial institution and its relevance.
4 The Nigerian At the end of the lecture, the students should be Obadeyi
Financial System able to understand:
a Nigerian financial system and its significance
to economic development
b. The financial market and its role in economy
acceleration.
c. The capital market, structure and its
achievement.
5 Nigerian Banking At the end of the lecture, the students should be Obadeyi
Structure able to understand:
a. Evolution of Nigerian Banking System
b. Central Bank of Nigeria
c. Commercial Bank and its functions
6 Types of Financial At the end of the lecture, the students should be Obadeyi
Institutions able to understand:
a. Definitions
b. Financial Institutions
c. Types of Financial Institutions
d. Bank Financial Institutions
e. Non-Bank Financial Institutions
7 Theory of Money At the end of the lecture, the students should be Obadeyi
able to understand:
a. The Classical Approach to demand for
money
b. Irving Fisher`s view to demand for money
c. The Cambridge or Cash Balance Approach
to demand for money
d. The Keynesian Approach to demand for
money: Liquidity Preference
e. Criticisms of the Keynesian theory of
demand for money
f. The Post-Keynesian Approach to demand
for money
g. Williams Baumol Inventory theoretical
Approach
h. James Tobin`s Portfolio Selection mode :
The risk aversion theory of liquidity
preference
i. Friedman Milton theory of demand for
money
j. Criticisms of the Friedman Milton theory of
demand for money

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8 The Control of At the end of the lecture, the students should be Obadeyi
Financial able to understand:
Institutions a. Central Bank of Nigeria
b. The Nigerian Deposit Insurance
Corporation (NDIC)
c. The Federal Ministry of Finance
d. The Securities and Exchange Commission
e. The National Insurance Commission
f. The Federal Mortgage Bank of Nigeria
g. The National Board for Community Bank
9- 10 Negotiable At the end of the lecture, the students should be Obadeyi
Instruments able to understand:
a. Meaning of Negotiable instrument
b. Types of Negotiable Instruments.
c. Characteristics of Negotiable Instruments
d. What Are Negotiable Instruments?
e. Banker’s draft
f. Bank Notes
g. Bill of Exchange
h. Cheque
i. Negotiation and Endorsement
j. Types of Endorsement
11 -12 The Nigerian At the end of the lecture, the students should be Obadeyi
Capital and Money able to understand:
Markets a. Meaning of Money Market
b. Money Market Operators and Methods of
Sourcing for Funds
c. Money Market Instruments
d. Features/Characteristics of a Developed
Money Market
e. Reasons for the Establishment of the
Nigerian Money Market
f. Functions of the Nigerian Money Market
g. Meaning of the Capital Market
h. Reasons for the Establishment of Nigerian
Capital Market
i. Capital Market Institutions (ORGANS)
j. Capital Market Instruments
k. Problems of the Nigerian Capital Market
13 Semester Quiz
14 REVISION
15 SEMESTER
EXAMINATIONS
16 SEMESTER
EXAMINATIONS

Readings
Adebayo, A. (2013). Economics: A simplified approach (2nd ed.). Lagos: African international
publishing limited.
Hajela, T. (2009). Money, banking and public finance (8th ed.). New Delhi, India: Ane Books
Ltd.

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 Jhingan, M.L. (2010). Money, banking, international trade and public Finance (8th edn.). Delhi:
Vrindan Publication.
Jhingan, M.L. (2011). Monetary Economics, (8th ed.). Delhi: Vrindan Publication.
Onyia, A.C. (2007). Element of banking. Lagos: Tayo Falas Nigeria Enterprise.
Course Resources: These journals may be useful for you during the course.
• Weekly financial Times
• Journals of Chartered Institute of Bankers of Nigeria (CIBN).
• The Nigerian Journal of Economics and social studies.
• Daily Business Day Newspaper.

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