Commercial Bank Management

Concept of commercial bank and commercial bank management; Historical development of commercial bank in Nepal; Functions of commercial banks; Organization structure of Nepalese commercial banks; Role of Internal Audit Department to check up irregular activities; and Regulatory authority of commercial banks in Nepal.

Concept of risk; Types of risks by commercial bank: interest rate risk, market risk,credit risk, off-balance sheet risk, foreign exchange risk, country risk, technology risk,operational risk, market risk, liquidity risk, and insolvency risk ; Interest rate risk:refinancing risk and reinvestment risk, market value risk; Credit risk: causes of creditrisk, firm-specific credit risk and systematic credit risk; and Technology risk andmeasures to be taken by Nepalese commercial banks to reduce the technology risk .

Meaning and nature of bank's deposit; Types of deposit: demand deposit, saving deposit, time deposit, call deposit, and recurrent deposit; Procedure of account opening; KnowYour Customer (KYC); Dormant account and procedures of making the dormant accountactive; Procedures of closing account; Card services: debit card, credit card, prepaid card;Deposit marketing and customer care services; Deposit insurance; and NRB directives ondeposit mobilization.

Concept and nature of bank credit; Types of credit: term loan, revolving loan, corporate loan, consumer loan, trust receipt loan; Credit process; Credit monitoring and supervision; Credit recovery; Credit marketing; Credit administration; Collaterals and margin: types and valuation; Loan classification and loan allowances, Credit risk and its management; Credit insurance; and NRB directives on loans.

Cash management; Security of vault; Cash insurance; Cash counter; Roles andresponsibilities of cashier; Clearing system; Electronic clearing; and Intra-bank and interbank fund transfer.

Fund transfer and remittance services; Utility payment services; Advisory services; Standing order from customer; and check and bill clearing services

Concept, Letter of credit: parties involved in L/C, types, procedures of opening L/C, rolesand responsibilities of involved parties; Export financing: pre-shipment and post- shipment finance; and foreign currency loan.

Meaning and concept; convertible and non-convertible currency; exchange rate system inNepal; Roles of Foreign Exchange Dealer Association of Nepal (FEDAN); and meaningof Nastro and Vostro accounts.

Introduction; scope of treasury; Back office and Front office; Asset liability management;and Roles and responsibilities of asset liability committee (ALCO).

Structure of statement of financial position; Structure of profit or loss account; and Major Performance Indicators of Nepalese Commercial banks.

Meaning and concept of e-banking; Internet banking; Branchless banking; Mobile banking; ABBS; ATM; and Opportunities, threats and challenges in the use of financial technology (FinTech).