| CODE | BKF2320 | ||||||||
| TITLE | Accounting for Bankers 1 | ||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 2 | ||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||
| DESCRIPTION | The study-unit covers specified areas directly associated with Accounting aspects of Banking. The study-unit covers: 1. Accounting standards associated with Banking ( IAS 39, IFRS 7 and IFRS 9 amongst others); 2. Accounting for Investments - the accounting for fixed income securities and equities; 3. An Introduction to Risk Management - Aspects of Risk directly related to Banking, such as Market Risk, Credit Risk, Reputational Risk, etc.; 4. An introduction to the instruments in the management of risk - An overview of hedging instruments such as forwards, futures, swaps and options; 5. Financial Institution Financial Statements; composition and evaluation - an overview of the structure of a bank's financial statements and their respective valuation; 6. Ratio Analysis - An overview of the salient ratios used in the evaluation of corporate performance and financial standing. A practical case study where participants are placed in a real-life situation where they have to recommend a investment or not; 7. Corporate Valuation Methods - an evaluation and overview of the different classifications of Corporate Valuation models. Study-Unit Aims: The study-unit aims at providing participants with an accounting perspective related to banking activities. It provides a background on all the accounting aspects related to banking, including the presentation of financial statements of banks, specific discussion of IFRS standards related to banking, accounting treatment of the investment portfolio of the bank, and how financial ratio analysis is used in banking, It is structured over fourteen lectures of two hours each. By offering this credit, the Banking and Finance Department of the University of Malta is confident that its graduates will be well equipped to study other more in-depth courses related to banking The Banking and Finance Department’s study-unit on accounting for bankers is unique. It is designed for students who would like to pursue a career in financial services. The accounting for bankers study-unit provides detailed knowledge together with practical skills so that students are able to fulfill their responsibilities more efficiently and effectively once they embark on their profession. By drawing upon international best practice, it helps prepare students to adapt to the modern financial services practitioners’ environment. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: 1. Explain the various accounting standards used by banks 2. Name the various types of instruments that are used to manage risks in banks 3. Explain how bank investments are treated from an accounting perspective 4. List the risks to which banks are exposed 5. Describe how financial ratios are used to assess banks 2. Skills: By the end of the study-unit the student will be able to: 1. Interpret accounting information to understand banks financial health and risk 2. Rank banks in terms of profitability and risk profiles using accounting information 3. Compare the various types of corporate valuation methods 4. Evaluate bank strategies using financial ratios 5. Distinguish different bank risk hedging instruments Main Text/s and any supplementary readings: Main Texts: - Relationship Management in Banking: Principles and Practice: 4 (Chartered Banker Series, 4) by Steve Goulding and Richard Abley, Kogan Page 2018 Supplementary Readings: Material provided by lecturer |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
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| LECTURER/S | Joseph Spiteri |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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