UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) FACULTY OF BUSINESS

S AND FINANCE (FBF) Unit Plan 1. 2. 3. 4. 5. 6. Unit Code & Unit Title: Course of Study: Year of Study: Year and Trimester: Credit Hour Lecturing hours and Tutoring hours Lecturer: Tutor: UBFB1023 FINANCIAL INSTITUTIONS OPERATIONS Bachelor of Business Administration (Hons) Banking and Finance Year One (Banking and Finance) 2011/05 3 credit hours 2 hours lecture per week for the duration of 14 weeks 1.5 hour tutorial per week for the duration of 14 weeks Ms. Wei Chooi Yi, Master of Education (Economic) (UKM), Bachelor of International Business (Hons) (International Finance) (UMS) (weicy@utar.edu.my) Ms. Wei Chooi Yi, Master of Education (Economic) (UKM), Bachelor of International Business (Hons) (International Finance) (UMS) (weicy@utar.edu.my) Mr. Faizil Fikri Bin Zakaria, MBA (Finance) (UUM), Bachelor of Finance (Hons) (UUM) (faizil@utar.edu.my) Cik Nurfadhilah binti Abu Hasan, Master of Business Administration (Banking / Finance) (UKM), Bachelor of Business Administration (Hons) (UUM) (nurfadhilah@utar.edu.my) Lecture and Tutorial To provide a fundamental understanding and knowledge of the principles and concepts of the operations of a financial institution. On completion of this unit, a student shall be able to: Know the various product and services offered by financial institutions Understand the basic features of these products and services. Familiar with the rules and regulations concerning these products and services Understand the fundamental principles of banking Gain basic understanding on equities, bonds, forex and derivatives market. Exposed to financial globalization and monetary system Exposed to Malaysian Capital Market Masterplan
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7. 8.

9. 10. 11. 12.

Moderator Mode of Delivery: Objective: Learning Outcomes:

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) 13. Reading List: Main Text: 1. Jee, T. K. (2003), Operations of Financial Institutions, Kuala Lumpur: IBBM. (JT) 2. Melicher R.W & Norton E.A (2008). Finance: Introduction to Markets, Investments and Financial Management, (13th ed.), Colorado: Wiley (M) 3. Securities Commission (2004). Malaysian Capital Market Masterplan. Kuala Lumpur: Securities Commission ( Downloadable Securities Commission website) Additional Text: 4. Sathye M., Bartle J., Vincent M., & Boffey R. (2003). Credit Analysis and Lending Management. Singapore: Wiley 5. Eun, C. S., & Resnick, B.G. (2009). International Finance Management (5th ed). New York: McGraw-Hill Irwin. 6. Moose, I.A. (2004). International Finance: An Analytical Approach (2nd ed.). Sydney: McGraw-Hill Irwin. 7. Saunders, A., & Cornett, M. (2008). Financial Institutions Management: A Risk Management Approach (6th ed.). Boston: McGraw-Hill Irwin. Method of Assessment: No. Method of Assessment 1. Coursework a) Mid-Term Test (Week 7) b) Group Assignment 2. Final Examination GRAND TOTAL 1. Coursework (40%) a) Mid - Term Test (20%) Tests will be given to monitor students progress on the understanding of the lectures and tutorials. The duration of test will be 1 hour 30 minutes and will be scheduled in Week 7. The topics covered from lecture 1 to lecture 5. Description Format: Five (5) subjective questions. Answer ALL the questions. b) Group Assignment (20%) A group of 4 -5 students are required to prepare a report on a product traded in financial institution OR a report regarding a financial institution. Details of the group assignment will be uploaded on to the WBLE. 20% 20% Total

40% 60% 100%

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Each group is required to select one topic from the list as below and submit the choice (with details of group members names and tutorial class number) to the lecturer latest on 6th June 2011 (Monday) before 12 noon for acceptance. Should a topic had been selected by the earlier group, thus the following group with same topic must select a new topic. Students are allowed to perform a report on topic (not in the list) which is related with this course. The group assignment is due on Friday, 22nd July 2011, before or at 12 noon (Week 8) with NO exceptions. Submission in form of hard copy (report) and soft copy (report, journals, and articles used in the report). Late Submission Penalty Clause Deadline for submission of assessment item(s) is to be strictly adhered to. No extension of time will be allowed except in extenuating circumstances, e.g. medical reasons. Students who wish to apply for extension of time for submission of assessment item(s) after the due date shall put in writing the request together with validated documentary evidence to support the application to his/her class tutor. The lead lecturer may consider and grant such extension of due date for the assessment item(s) based on the tutor's recommendation. Any assessment item required by the Coursework Assessment which is submitted after the due date, without an approved extension, will be penalized. A penalty of 10% reduction of the maximum mark applicable to the assessment item(s) will be levied for each day of late submission. A minimum penalty will also be levied for late submission (after the stated time). Weekends and Public Holidays are counted as one (1) day late. Assessment item(s) submitted more than seven (7) days after the due date will be awarded with zero (0) marks. 2. Final Examination (60%) The final examination for this subject will be 2.5 hours and will consist of TWO sections: Section A (40 marks) = ONE (1) compulsory question. Section B (60 marks) = THREE (3) questions in which students are required to answer any TWO (2) questions. 14. INDEPENDENT LEARNING Students are expected to do independent learning and additional readings for each topic to complement the existing lectures and tutorials for each week. Students are to keep up-todate with current events by reading newspapers, financial magazines, bankers journal and online sources such as: Online source Malaysia: http://www.bnm.gov.my http://www.bankinginfo.com.my http://www.sc.com.my
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UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) http://www.abm.org.my http://www.ibbm.org.my http://www.insuranceinfo http://www.pidm.gov.my http://www.klse.com.my

International http://www.bis.org 16. Remark: ACADEMIC REGULATIONS Lectures and tutorials Attendance at lectures and tutorials is compulsory. Students must meet a satisfactory percentage of attendance. Plagiarism Plagiarism is defined as the submission or presentation of work, in any form, which is not one's own, without acknowledgment of the sources. If a student obtains information or ideas from an outside source, that source must be acknowledged. Another rule to follow is that any direct quotation must be placed in quotation marks and the source immediately cited. Plagiarism is also defined as copy of all or part of the work of another student(s) of current or previous batch of this University or another higher learning institution. The University's degree and other academic awards are given in recognition of the candidate's personal achievement. Plagiarism is therefore considered as an act of academic fraudulence and as an offence against University discipline. Intellectual Property Copyright must be seriously protected. The University takes a strong stand against any illegal photocopying of textbooks and any other materials by students. Students are forewarned of the consequences and the penalty that may be meted out if they are "caught in the act". Mode of Referencing Students are advised to incorporate proper academic modes of referencing. The normally acceptable mode of academic referencing is the APA system; please refer to the attached APA referencing system document for detailed usage.

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) TEACHING PLAN WEEKLY SCHEDULE Lecture, Tutorial & Assignment Plan Week Lecture Topic
1. 30 May 2011 3 June 2011 Topic 1:

Tutorial Topic

Assignment / Mid Term Test

Group Assignment Date given: Assignment given during tutorial class (Week 1) Due date: 22nd July 2011 (Week 8)

Reference
JT (Chapter 1) & M (Chapter 1) & Multiple references

Financial Institution & Tutorial 1 Globalisation International & Domestic Briefing on: Finance Current trends in financial - Unit Plan - Group assignment industry requirements - Allocation of group Learning outcome member Students will be able to: - Tutorial Identify the overview of financial participation system. Define the financial system structure in Malaysia. Define the definition of bank. Explain the function and services offer by Bank Negara Malaysia, banking institutions and miscellaneous group. Topic 2 : International Monetary System Bimetallism to flexible exchange rate Current exchange rate system European monetary system European monetary union (Euro) Mexican monetary crisis Asian currency crisis Learning outcome Students will be able to: Explain how the international monetary system evolved. Describe the efforts undertaken to achieve economic unification of Europe. Describe how currency or foreign exchange markets are organized and operate. Explain how currency exchange rates are quoted. Identify the scenarios of Mexican monetary crisis and Asian currency crisis. Tutorial 2 (Topic 1) Minimum 5 questions to be answered and will be discussed in tutorial class.

2. 6 June 2011 10 June 2011

M (Chapter 18) & Multiple references

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Lecture, Tutorial & Assignment Plan Week Lecture Topic Tutorial Topic Assignment / Mid Term Test Reference

3. 13 June 2011 17 June 2011

Topic 3 : Financial Intermediation Learning outcome Students will be able to: Define the role and types of financial intermediaries Describe the way capital can be flow between savers and borrowers. Topic 4 : Regulation and Supervision Bank Deposit Insurance Capital Adequacy Basel I & II Money Laundering (Basel, FATF & AMLA) Learning outcome Students will be able to: Identify the main regulation governing the financial system in Malaysia. Define the problem arises with the Basel 1 and benefit cover with the implementation of Basel II.

Tutorial 3 (Topic 2 ) Minimum 5 questions to be answered and will be discussed in tutorial class. Due date of submission on topic selected to lecturer 6th June 2011 (Monday) before 12 noon.

M (Chapter 2 & 3 & Multiple references

4. 20 June 2011 24 June 2011

Tutorial 4 (Topic 3) Minimum 5 questions to be answered and will be discussed in tutorial class.

Multiple references

5. 27 June 2011 1 July 2011

Topic 5 : Technology in Banking (Malaysia) BNM guidelines on e-banking E-banking in Malaysia Types of e-banking products in Malaysia Learning outcome: Student will be able to: Describe characteristic of electronic cash. Define the types of electronic banking. Explain the use of Electronic Data Interchange System (EDI) to link

Tutorial 5 (Topic 4) Minimum 5 questions to be answered and will be discussed in tutorial class.

JT (Chapter 7) & Multiple references

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Lecture, Tutorial & Assignment Plan Week Lecture Topic
with business communication.

Tutorial Topic

Assignment / Mid Term Test

Reference

6. 4 July 2011 8 July 2011

Topic 6 : Bank-Customer Relationship Definition of customer Type of customer Relationship between bankercustomer Banker and customer duties Learning outcome: Students will be able to: Define the meaning of customer Explain the type of customer Describe the relationship between banker-customer Distinguish banker and customer duties Topic 7: Traditional Banking Product Different types of accounts Savings Current Fixed Deposit Other banking products Leaning outcome: Student will be able to: Explain the mechanism in current and saving account deposits. Determine the differences between current, saving, and fixed account deposits. Calculate the withholding tax and interest payable in deposit accounts. Understand the features of other banking products and services.

Tutorial 6 (Topic 5) Minimum 5 questions to be answered and will be discussed in tutorial class.

JT (Chapter 1 & Chapter 2)

7. 11 July 2011 15 July 2011

Tutorial 7 (Topic 6) Minimum 5 questions to be answered and will be discussed in tutorial class.

Mid-term Test Note: Students will be notified of the date and venue

JT (Chapters 5)

8. 18 July 2011 22 July 2011

Topic 8 : Principles of Lending Credit evaluation Principles of Good Lending Learning outcome: Students will be able to:

Tutorial 8 (Topic 7) Minimum 5 questions to be answered and will be discussed in tutorial class.

Group assignment Due date: 22nd July 2011 (Week 8)

JT (Chapter 8 )

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Lecture, Tutorial & Assignment Plan Week Lecture Topic
Define and explain each type of credit evaluation. Calculate the Risk analysis Explain the credit risk assessment Describe the role of ratios in financial analysis Explain the trend analysis and peer group Topic 9 : Credit Facilities Overdraft Term loan Trust receipts Bankers acceptances Letter of Credit Shipping Guarantee Bank Guarantee Venture Capital Learning outcome: Students will be able to: Define and explain each type of credit facilities. Describe the operations of the different types of credit products. Identify the types of guarantees issued by a financial institution. 10. 1 Aug 2011 5 Aug 2011 Topic 10 : Equities and Bonds Common stocks Preferred stocks Bonds Learning Outcome: Students will be able to: Define the type of stockholders equity Differentiate the function of long term debt and equity Describe the basic role of bonds Explain the trading of bonds 11. 8 Aug 2011 12 Aug 2011 Topic 11 : Foreign Exchange Market Operation of foreign exchange market Type of foreign exchange rate Forward exchange contracts Tutorial 10 (Topic 9) Minimum 5 questions to be answered and will be discussed in tutorial class. M (Chapter 7 & Chapter 8)

Tutorial Topic

Assignment / Mid Term Test

Reference

9. 25 July 2011 29 July 2011

Tutorial 9 (Topic 8) Minimum 5 questions to be answered and will be discussed in tutorial class.

JT (Chapter 9)

Tutorial 11 (Topic 10) Minimum 5 questions to be answered and will be discussed in

JT (Chapter 11)

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Lecture, Tutorial & Assignment Plan Week Lecture Topic Tutorial Topic Assignment / Mid Term Test Reference

12. 15 Aug 2011 19 Aug 2011

Learning Outcome: tutorial class. Students will be able to: Explain the operations of the foreign exchange market Define the type of foreign exchange rate quoted Calculate the foreign exchange transactions Explain the purpose of forward exchange contracts Topic 12 : Futures and Options Tutorial 12 (Topic 11) Futures Options Minimum 5 questions to be answered and Learning Outcome: will be discussed in The students be able to: Explain the characteristic of futures tutorial class. and options market State the role of futures and options market Describe the way futures and options being traded Identify the diagrams of options Topic 13 : Malaysia Capital Market Masterplan Learning outcome: Students will be able to: Identify the main regulation governing the Malaysia Capital Market Masterplan Define the progress of Malaysia Capital Market Masterplan Distinguishing the Regulatory Framework by Securities Commission for Malaysia Capital Market Masterplan Describe the challenges for the Capital Market. Identify the implementation structure of Malaysia Capital Market Masterplan Revision Revision on topics below: Minimum 5 questions Tutorial 13 (Topic 12) Minimum 5 questions to be answered and will be discussed in tutorial class.

JT (Chapter 11) & M (Chapter 9)

13. 22 Aug 2011 26 Aug 2011

Securities Commission:

Malaysian Capital Market Masterplan

14. 29 Aug 2011

Tutorial 14 (Topic 13)

UNIT PLAN UBFB1023 Financial Institutions Operations (May 2011) Lecture, Tutorial & Assignment Plan Week Lecture Topic
2 Sept 2011 Bank-Customer Relationship Traditional banking product Principles of Lending Credit Facilities Equities and Bonds Foreign Exchange Market Futures and Options Malaysia Capital Market Masterplan

Tutorial Topic
to be answered and will be discussed in tutorial class.

Assignment / Mid Term Test

Reference

This Unit Plan is: Prepared by:

Moderated by: _____________________ (Name: Cik Nurfadhilah binti Abu Hasan) Moderator Date:

Approved by: _______________________ (Name: En. Marlehan Mohamed) Head of Department Date:

(Name: Ms. Wei Chooi Yi) Lead Lecturer Date:

Notes: The information provided in this Unit Plan is subject to change by the Lecturer. Students shall be notified in advance of any changes

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