International Islamic University Chittagong

Faculty of Business Studies

Department of Business Administration
Program: MBM

Course Title: Theory and Practice of Banking

Course Title: Theory and Practice of
ISCED Code: Course Code: BNKG-4101
Banking
Course Assessments
Credit Hours: 03 Contact Hours: 03
Attendance 10 Marks
CIE: Continuous Case study presentation 10 Marks
Internal Evaluation Class Test/ Assignment/
10 Marks
Quizzes
Mid-term 30 Marks
SEE: Semester End Examination 40 Marks

Course Objectives
The main objective of this course is to provide the fundamentals knowledge on theory and
practices of banking. Specific objectives of the course are as follows:
1. To learn the basic knowledge of banks and banking industry in Bangladesh
along with the various functions and services provided by commercial banks.
2. To provide the knowledge of different categories of bank’s customers, banker customer’s
relationship, electronic banking and central banking.
3. To analyze the concept of Islamic banking, Money laundering, risk management of bank
,Income, Expenditure & Dividend Policy of Banks
Course Learning Outcomes
CLOs Upon completion of this course the students will be able to- Mapping
with POs

CL01 Use basic knowledge of banks and banking industry in Bangladesh along 1,2,3,5
with the various functions and services provided by commercial banks.
CL02 Demonstrate the different categories of bank’s customers, banker customer’s
1,2,5,6
relationship, electronic banking and central banking.
CL03 Evaluate the Islamic banking, Money laundering, risk management of bank 1,3,4,6,7
,Income, Expenditure & Dividend Policy of Banks

Mapping of CLO to PLO Mapping

CLO/PLO PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7
CLO1 1 1 1 - 1 - -
CLO2 1 1 - 1 1 -
CLO3 1 - 1 1 - 1 1
3-High Correlation, 2- Medium Correlation, 1-Low Correlation
 SL.NO CONTENT OF COURSE (as Summary) Hrs. CLOs
01. Introduction 03 CLO1
Origin of the word ―BANK‖, Definition of Bank , Historical development
of banking in world , Banking history in Bangladesh, Nationalization of
Commercial Banks in Bangladesh after liberation war , Objectives of
nationalization Bangladesh Bank and its functions Controlling Volume of
Credit
02. Commercial Banking: Definition of Commercial Bank, Inflow and 03 CLO1
Outflow of Commercial Bank‘s Funds, Different sources of bank funds,
Functions of Commercial Bank, Subsidiary Services by Commercial Bank,
Sound BankingPrinciples, Clearing House System , EFTN, RTGS, Non-
Performing Assets, Factors affecting non-performing assets, Role of
Commercial
Bank in the economy
03. Relationship between Banker and Customer 06 CLO2
Meaning of Banker, Meaning of Customer, General Relationship ofBanker
and Customer , Obligations of Banker, Circumstances whenbankers disclose
customers account information, Garnishee order, Typesof Garnishee order,
Rights of a Banker, Lien and Types of lien
04. E-Banking and M-banking 03 CLO3
Meaning of Electronic Banking , Objective of Electronic Banking, History
and Development of Electronic Banking, Types of Electronic Banking,
Internet Banking, Risk in Electronic Banking, Problems of Electronic
Banking, Mobile Banking, Benefits of Mobile Banking, Mobile
Banking Services, Challenges for Mobile Banking solution
05. Islamic Baning: Meaning of Islamic Banking, Islamic Vs Conventional 06 CLO3
Banking, Practices of Islamic Banking, Partnership Contracts: Bai Al-
Murabaha and Musharakah; Exchange based Contracts: Bay Al-Murbahah,
Bay Al-Istisna, Bay Al-Salam, Bay Al- Dayn, Bay Al-Sarf, Bay Al-Inah, Bay
Al-Tawarruq, Ijarah (Lease), Bay Al-Muajjal (Deferred Sale) / Bay Al-
bithaminajil (BBA), Hire Purchase under ShirkatulMelk. Charity based
Contracts: Quard al- hasanah, Waqf, Hibah; Debt Contracts: Bai Al-Dayn;
Trust based Contracts: Wakalah, Wadiah, amanah, Ariya ,Jualah; Security
Contracts: Rahn, Kafalah and Hiwalah,Currency Contracts: Bai al-Sarf;
Agricultural Contracts: Muzaraah (share cropping), Mushaqah; Risk sharing
Contracts: Takaful, and many others contracts.
05. Special types of Bank’s Customers 06 CLO1
Minor; Lunatics; Drunkard or Intoxicated Person; Married Woman;
Pardanshin Woman; Illiterate Person, Trustee, Executor and
Administrator, Customer‘s Attorney; Joint Account; Local Bodies; Club,
Association, Society, School, College; Partnership; Limited Company.
06. Foreign Exchange and Financing of Foreign Trade 06 CLO2
Foreign exchange, Letter of credit (L/C) and parties involved in L/C, Types
of Letter of credit, Letter of credit opening procedure, Documents require
to L/C, Foreign trade, Import financing and Methods of import financing,
Export financing, Pre-shipment export financing methods, Post-
shipment export financing methods
07. Risk in Banking and its management: 06 CLO3
Concept of Risk and Risk management, Types of commercial banks risk,
Credit risk and its management, Interest Rate Risk and its management,
Liquidity Risk and its management, Operational Risk and its management
,Market Risk; Currency Risk; Counterparty Risk
08. Money Laundering 06 CLO3
Definition of Money Laundering, Background of Money Laundering,
Money Laundering process, Sources of Money Laundering, Role of
Bangladesh Bank in Combating Money Laundering, Information needed
to combat money laundering, Effects of Money Laundering in Economy
and Financial Sectors
09 Income, Expenditure and Dividend Policy of Banks 03 CLO1
Banks Income and Expenditure, Determination of Bank Income, Structure
of Bank Expenditure, Pattern of Dividend Policy in Banks, Guidelines for
Dividend Payment by Banks in Bangladesh.
Text Book
Chowdhury , L. R() A Textbook
on General Banking
Reference Books
Khan, A. R. (2009) Bank Management: A fund emphasis published by Brother‘s
Publications
Course Assessment Pattern (Theory courses):
Bloom’s Category Evaluations out of
100 marks
CIE (50 SEE (40marks)
marks)
Cognitive Affec Attend Mid- Assignment Case Written Exam:
learning tive ance term / Class Test: presentati (50)
Lear Marks : (10) on(:10)
ning (:1 (30)
0)
Remember - - 5 - - 5
Understan - - - 5 - 10
d
Apply - - 5 - - 05
Analyze - - 5 - - 10
Evaluation - - 10 5 - 15
Create - - 5 - - 05
x Respo 10 x x 10
ndin
g
Remarks Course teachers may change the magnitude of marks in Bloom‘s
category(Both for CIE and SEE), but he/she will have to keep in mind that
the % of higher order learning mode must be about 60% or more and
all the Bloom‘s categories to be
addressed during the semester.
Note: CIE = Continuous Internal Evaluation, SEE = Semester End Examination.
Delivery methods & activities: Lecture, White Board Writing, Questions and
Answers, DiscussionsPower point Presentation,
Assessment tools: Class Attendance, Class test, Quizzes/ Assignment. Mid-
Term & Final Exam.Project evaluation & Viva.