Diploma in Business and Corporate Banking

Course Syllabus

Business Banking - Credit Value: 1.0

Aims

General Aim

To provide an extensive, detailed and critical knowledge and understanding of the business banking industry and to develop a range of business banking skills, techniques and practices at a professional level.

Specific Aims

To provide a basic understanding of the components of Business Banking.

1. To develop a critical understanding of the canons of lending .
2. To allow bankers to exercise a range of business banking lending skills, techniques and practices.
3. To interpret and assess business accounts by critical analysis, evaluation and synthesis of complex issues.
4. To review the ongoing interface and communication with customers and their spectrum of reactions to the principles of business banking.
5. To develop effective problem solving and decision making using appropriate quantitative and qualitative skills including identifying, formulating and solving business problems and assessing and managing risk in a business banking context.

Content

1. The Banker Customer Relationship

Explain the basis of the banker-customer relationship which gives rise to contractual rights and obligations.
Analyse the rights and duties of banker and customer and explain the consequences of any breach of them.

2. The Canons of Lending

People / Character
Purpose / Amount
Repayment Capability / Terms
Security
Remuneration / Margin

3. The Balance Sheet and its Ratios

The Balance Sheet - a summary.
Ratio Analysis and Interpretation.

4. Security for Advances

Types of Security
Margin in the security value.

5. Assessing Customers’ Needs

Customers' Needs
Alternative Methods of Borrowing
Examples of lending to specific sectors e.g. farming, property development / builders.

6. Lending in Foreign Business Transactions

Types of lending in the foreign business sector.

7. Assessing / Control Advances

Monitoring Cash Flow Reports / Projections

8. When Things Go Wrong - Types of Problems

Administration / Receivership
Diligence and Insolvency

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Corporate Finance - Credit Value: 1.0

Aims

General Aim

To provide an extensive, detailed and critical knowledge and the skills required by financial services professionals to allow them to operate effectively in the corporate finance environment

Specific Aims

1. To provide an extensive, detailed and critical knowledge of the corporate environment and the finance function.
2. To provide and develop the knowledge, understanding and skills necessary for financial services professionals who wish to give effective advice to customers on their company plans.
3. To apply this understanding and the consequent skills, practices and techniques in assisting customers with the corporate financing requirements of their business and the making of recommendations for the operation of and lending to such businesses.
4. An ability to apply knowledge and understanding of business finance and management by critical analysis, evaluation and synthesis of complex issues.

Content

1. Describe the differences between a public and a private limited company.
2. Describe and explain how ownership and control can differ; state the possible difficulties this may cause and suggest some solutions.
3. Explain how companies are controlled, governed and regulated, including the regulation of takeovers and mergers.
4. Identify the economic influences bearing on companies.
5. Describe the recent trends towards globalisation and securitisation.
6. Describe the operations of financial markets.
7. Identify the financial institutions and explain how they operate in financial markets.
8. Set out what is included in a corporate strategy and explain how it is produced and implemented.
9. Explain the finance function roles of the Financial Director and Treasurer and show how the finance function fits in with the company's corporate strategy.
10. Outline the development of corporate banking and the concept of relationship management.
11. Distinguish between the various financial instruments and sources of finance available to companies.
12. Demonstrate a working knowledge of the time value of money and the use of discounted cash flow techniques, such as net present value and internal rate of return.
13. Carry out simple calculations using the above techniques and also using profitability indices, payback and accounting rate of return.
14. Set out the practical aspects of cash flow appraisal and also explain their use in investment appraisals.
15. Demonstrate knowledge of risk and reward and show how it is used in practice.
16. Explain the cost of capital and demonstrate knowledge of how it is used in practice.
17. Describe what is meant by capital rationing and explain how it operates in practice.
18. List and describe the various types of capital, describe the capital markets and comment on the suitability of a company's capital structure.
19. Explain a company's cost of capital.
20. Explain the factors influencing dividend policies.
21. Distinguish between the different methods of raising debt, both short and long term and explain the advantages of each debt instrument.
22. Comment on the suitability of a company's capital/debt structure.
23. Describe how treasury operations are organised.
24. Describe the factors affecting liquidity management.
25. Demonstrate a practical knowledge of working capital management, including cash management and liquidity policy.
26. Explain hedging and the use of derivatives in interest rate and currency exposure management.
27. Select suitable interest rate management techniques.
28. Describe the transaction, translation risks and economic risks a company runs through trading overseas.
29. Demonstrate a basic working knowledge of hedging currency and interest rate exposures, including options.
30. Explain the strategic and financial rationale behind mergers, acquisitions, divestments and demergers and outline the regulations affecting takeovers.
31. Explain various acquisition and defence strategies.
32. Describe how mergers or acquisitions are evaluated and financed.
33. Describe the process of integration and the issues involved following a takeover.
34. Explain the rationale behind divestment and demergers, including management buy-outs and management buy-ins.
35. Describe the uses of project finance.
36. Explain the assessment of risks and the transfer of risk in project finance.
37. Describe the Private Finance Initiative.

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Retail Banking - Credit Value: 1.0

Aims

General Aim

To provide the student with an extensive, detailed and critical knowledge of the products and practices that exist within the ever-changing retail banking environment.

Specific Aims

1. To provide the student with an extensive, detailed and critical knowledge and understanding of the legal aspects of the banker - customer relationship.
2. To give an ability to apply knowledge and understanding of business and management by critical analysis, evaluation and synthesis of complex issues within the context of the retail banking environment.
3. To give the student a range of skills, techniques and practices in credit at a professional level
4. To develop the cognitive skills of critical thinking, analysis and synthesis utilised when considering the procedures for taking the range of securities for advances.
5. To give an extensive, detailed and critical knowledge and understanding of diligence and bankruptcy.

Content

1. Money Transmission

Forms of Money Transmission
The Clearing Process

2. Savings and Investment

The Difference between Savings and Investment
Savings and Investment Products
Liquidity Management

3. Other Services

Safe Custody
Insurance and Assurance
Share Dealing Services and Advice
Unit Trusts
Travel Services
The Banking Code

4. Banker & Customer

How the Banker-Customer Relationship is Established
The Rights and Duties of a Banker and of a Customer
Bankers' Lien
Clayton's Case
Death of a Customer
Trusts
Testate and Intestate Succession
Electronic Funds Transfer

5. Principles of Lending

The Canons of Lending
Other Considerations

6. Lending Products

Overdrafts
Personal loans
Revolving credit
Credit cards
House purchase loans
Capital release loans
Bridging loans
Term loans
Hire purchase and leasing
Self build loans

7. Mortgage Lending

Background to Mortgage Lending
Types of Mortgage

8. Agency & Contract

Agency
Contract

9. Securities for Advances

Introduction
Standard Securities
Guarantees
Life Policies
Stocks & Shares
Miscellaneous Securities

10. Diligence & Bankruptcy

Types of Diligence
Apparent Insolvency & its Effects
Sequestration

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Financial Management - Credit Value 1.0

Aims

General Aim

To provide an extensive, detailed and critical knowledge and the skills required by financial services professionals to allow them to understand the operation of financial planning and management accounts and their linkages with business planning and strategy.

Specific Aims

1. To provide an extensive, detailed and critical knowledge of the need for clear planning and strategy in all forms of business.
2. To provide and develop the knowledge, understanding and skills necessary for candidates to understand proven methods of financial planning in business.
3. To apply this understanding and the consequent skills, practices and techniques in assisting customers with the financial planning of their business and the making of recommendations for the operation of and lending to such businesses.
4. An ability to apply knowledge and understanding of business finance and management by critical analysis, evaluation and synthesis of complex issues.

Content

1. Basics

Business planning and its links to financial planning
An introduction to management accounting
Costs & estimating costs
Overheads and their absorption into expenses
Absorption costing and marginal costing

2. Decision Making

Cost/volume sales and analysis of profit
Decision making and the need for relevant information on costs and benefits
Decisions relating to price setting; the limiting factors
Decision making related to risks
Appraising capital investments

3. Budgeting; Planning, Control and Performance Evaluation

Planning & Budgets
Controlling Budgets
Variance Analysis
Appraising Performance against plans
Decisions arising from evaluation of performance

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