Fundamentals of Banking
This course serves as an introduction to private sector banking (as opposed to central banking). Banks are at the very centre of the financial system. They act as intermediaries between all the four sectors of the economy (the household, corporate, government and foreign sectors) and all other financial intermediaries.
They are also at the very centre of the money market, the market for short-term debt, marketable and non-marketable, and the interbank markets. They also create the all-important payments system. The banks are unique in that they are able to create new money (by new bank lending), and this is so because money is whatever is generally accepted as the means of payments / medium of exchange: bank deposits (notes and coins make up a minor part of the money stock). Because of this, and other reasons (moral hazard, for example) banks are also inherently unstable, and require robust regulation and supervision. Also because of this, banks are the target of monetary policy implementation.
At the end of the course, the participants should be able to:
• Describe the context of banking: the financial system;
• Explain the essence of banking;
• Describe the creation of money, the money identity, and the meaning and significance of bank liquidity;
• Evaluate the various risks with which banks contend; and
• Discuss the significance and elements of banking regulation.
The course consists of the following modules:
• Module I: Essence of banking
• Module II: Money creation
• Module III: Risk in banking
• Module IV: Bank models and prudential requirements
In order to ensure the best possible outreach, the course will be delivered through e-learning. Through a multiple-instructional setting, the goal is to achieve the learning objectives by means of learning technologies that match personal learning styles and by the inclusion of non-linear learning that aims at the development of just-in-time skills of adult learners. At the same time, in order to allow participants maximum flexibility of scheduling, the learning will be conducted in an asynchronous manner. Using a state-of-the-art training architecture, UNITAR will combine self-learning with assessments and online discussions. The pedagogy - adapted specifically to professionals in full-time work - will help train participants through various experiences: absorb (read); do (activity); interact (socialize); reflect (relate to one’s own reality).
This course is targeted to officials of government ministries and agencies directly involved in financial market matters such as central banks, state banks (such as development banks), state retirement and insurance funds, state representatives of securities exchanges and staff members of financial market-related supervising agencies. Private sector participants such as bank and other financial intermediary employees, members of exchanges / broker-dealers, lawyers, accountants, company treasurers and directors will also benefit from this course.
A certificate of completion will be issued by UNITAR to all participants who complete the course-related assignments and assessments successfully. Course schedule is subject to change. Course fee is non-refundable but transferrable to another course or participant and subject to change as per UNITAR's policy on pricing.