Banking Business Game

  • Teamwork
  • Funding source
  • Liquidity risk
  • Bank´s reserve
  • Cost of bank funds
  • Security Funding
  • Repo and Liquidity
  • Fund transfer Pricing
  • Net interest income
  • Economic value of equity
  • Managing the bank book

Mode of delivery

face to face

Type

compulsory

Recommended or required reading and other learning resources/tools

Hull, J.: (2018): Risk Management and Financial Institutions, Wiley, 5th ed.
Koch, W/Macdonald T. (2014): Bank Management, South-Western College Publishing, 8th ed.

Planned learning activities and teaching methods

Students work in groups. Each peer is a bank, which competes in different market environments; the peers must meet management goals with their decisions and actions. The lecturer evaluates the students’ decision-making and the results of the actions. The peer who represents the bank with the highest market value of equity wins the competition.

Assessment methods and criteria

Continuous assessment (100%): After each period the market value of the group´s bank will be evaluated.

Prerequisites and co-requisites

Bank Controlling ALM, Risk Management and International Banking Regulation, International Banking Business, International Bank Management

Infos

Degree programme

International Banking and Finance (Master)

Cycle

Master

ECTS Credits

3.00

Language of instruction

English

Curriculum

Part-Time

Academic year

2023

Semester

3 WS

Incoming

No

Learning outcome

After the successful completion of this course, the students can

  • describe and explain the Asset & Liability Management (ALM) process in their bank
  • explain how the key focus areas of ALM affect day-to-day decision-making in the bank
  • identify and analyse the bank’s exposure to the Key Sources of Financial Risk
  • identify the various strategies and frameworks the bank employs in order to control risks within specified limits
  • identify the key drivers of performance
  • reorganize team structure, if it is necessary to increase decision performance
  • decompose given management goals into sub-goals
  • Infer from subgoals to the right Management actions
  • manage the loan portfolio and bank book in respect to erformance and risk
  • manage the Balance Sheet of their bank
  • manage economic value of equity of their bank

Course code

0230-17-01-BB-EN-21