8/13/2019 Banking Detailed Course Outline

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Evolution of Banking Services Session-01: History of  Banking 

•  The Origins & Meanings of the word “Bank”

•  Early Bankers

•  The Ancient Egyptians

•  Ancient Chinese

•  The Babylonians•  The Ancient Romans

•  Banking through The Middle Ages

•  Birth of “Modern” Banking – Time of Banking Families

•  Age of Banking & Bankers – Birth of Central Banks in Europe 

•  Changes in Banking & Modern Times

•  Future Trends in Banking 

Session-02: Development  of  Banking Services in Pakistan 

•  Early Years – Banking Services available at the time of Independence 1947

•  Initial Development of Banking Companies 1947‐55•  Green Revolution & its impact of Financial Service Providers 1955‐71

•  Loss Of Bank/Industry Owners upon Separation of East Pakistan 1971

•  Nationalization of Banking Sector 1973‐4

•  Era of Public Sector Banking 1974‐1991

•  Introduction of Consumer Credit by Foreign & Local banks 1989‐90

•  Liberalization of Banking Sector – Re‐emergence of Private Commercial Banks 1990‐onwards

•  Privatization of Public Owned Banks 1992‐onwards

•  Freezing of Foreign Currency Accounts Following Nuclear Testing May 1998

•  Collapse of NDFC & Mehran Bank Scandal 2000‐2

•  Impact of 9/11/2001 – Focus on AML/KYC & Foreign Currency Regulation 2001‐present

•  Rise Of Islamic Banking 2002‐present•  War On Terror – Impact on Pak Economy in general & Banking Sector in particular 2002‐present

•  Global Financial Meltdown & Pak Banking (Export decline/Consumer Credit Collapse2007‐present

•  Blurring of Business Segmentation in time of Cross Selling 2006‐present

•  Future Trends – CRM, BASEL‐II Implementation, New Technologies 2010‐beyond

Detailed Outline“Certified Management Professional” in

“Banking Operations” 

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Session - 03: Types of  Banking Service Providers 

•  State Bank Of Pakistan – The Central Bank

•  National Bank Of Pakistan – Agent to the State Bank

•  Local Commercial Bank – Formerly Known as Scheduled Banks

• Foreign Banks – Operating in Pakistan

•  SMEB, ZTBL, DNS & IDBP – The Specialized Banks

•  Investment Banks – A dying Breed

•  Islamic Banks – Shariah Compliant & Riba Free?

•  Micro Finance Banks – A recent phenomenon

•  NBFIs – Leasing Companies & Modarabas

•  Others – The Postal Savings Bank, Co‐operative Banks & Foreign Currency Exchange Companies

Banking Laws & RegulationsSession-04: Various Laws Regulating Banking Sector 

•  Contract Act•  SBP Act 1956

•  Negotiable Instruments Act

•  Banking Companies Ordinance 1962

•  National Accountability Bureau (NAB) Ordinance 1999

•  Financial Institutions (Recovery of Banking Finances) Ord. 2001

•  Microfinance Institutions Ordinance 2001

•  Payment Systems & Electronic Fund Transfers Act 2007

•  Anti Money Laundering Act, 2010

•  Supreme Court’s Detailed Judgment on Riba 24th June, 2002

•  Office Of the Banking Mohtasib vs. prior system of Banking Courts/ Tribunals

•  SBP SROs (Statutory Regulatory Orders)•  SBP’s quarterly guidelines for risk management

•  F.E. Manual 

Session – 05: SBP Prudential Regulations 

•  What are SBP Prudential Regulations? 

•  Prudential Regulations by Category: 

•  M – KYC & Anti Money Laundering Measures

•  G – Corporate Governance

•  R – Risk Management

•  ‐ Operations•  Prudential Regulations by Type of Borrower: 

•  Consumer

•  Commercial / Corporate

•  Agriculture

•  SMEs

•  Micro Finance Banks

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General Banking OperationsSession-06:  Account  Opening 

•  How to open an account?

•  Account Opening Requirements

•  Individuals & Sole Proprietorships

•  Partnerships

•  Corporations

•  Clubs, Societies & Associations

•  What are KYC & AML Procedures?

•  KYC Form

•  AML Guidelines

•  Dealing with Compliance Issues

•  NADRA Verisys

Session 

– 

7: 

 Account  

Operation 

•  How to Obtain & Maintain the Cheque Books?

•  What are Charges & Issues of Dealing at Bank Cash Counters?

•  Cash Handling/Receiving Charges

•  Cash Withdrawal Charges (WHT)

•  Cash Withdrawal Limits

•  Cash Insurance Issues

•  Issues with your Bank Statement Reconciliation

•  Opening of Staff Accounts – Issues & Bank Policy

•  Foreign Currency Accounts & their opening requirements and operation

•  Other Problems in Account Operation & their amicable solution

Session-08: Clearing & Collection 

•  What is clearing?

•  Inward & Outward Clearing

•  Process Flows & Issues – Root of most money laundering activities

•  Understanding NIFT

•  Crossing – Its types & related issues

•  Endorsements – Types & related procedures 

•  What is Collection? Process Flows & Issues.

Session-09: Remittances 

•  What are types of Remittances?

•  Local

•  Foreign

•  How to receive Remittances?

•  How to send Remittances?

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•  What are correspondents? How to work with a bank having correspondents?

Credits / AdvancesSession-10: General Overview & Types of  Credits 

•  Origins & Meaning of the word Credit

•  How to approach a bank for Credit?

•  What types of Credit Facilities exist?

•  Funded Based Credits

•  Non‐Funded or Documentary Credits

•  Which Credit Facility suits your organization’s requirements?

•  What Basic Principles for Managing Credit Risk are observed by the bankers?

Session – 11: Credit   Approval, Initiation & Management  

•  What is the Credit Approval Process? How long does it take?•  What documents are required by the bank to approve your loan?

•  What is security documentation?

•  How to interact with your Relationship Manager?

•  How to get the bank to lend when your company’s financials are weak?

•  Dealing with SBP in case of e‐CIB Statement showing over‐dues.

•  How to secure Bank Guarantees?

•  Products specifically designed for SMEs

Trade Finance & Foreign ExchangeSession-12: Imports & Exports 

•  What are basis for Foreign Trade?•  What types of Foreign Trade Transactions are there?

•  Understanding Trade Settlements

•  Documentation involved in International Trade

•  What is Documentary Collection?

•  Uniform Rules for Collection

•  Letter Of Credits (L/Cs)

•  Types of L/Cs

•  Uniform Customs & Practices – ICC‐600

•  Issuance, Advising & Negotiation of L/Cs

•  What are the Risks involved in Foreign Trade & their mitigants?

•  Special Issues in Foreign Trade•  Financing Facilities related to Imports & Exports

Session – 13: Treasury Management  •  Concept of Treasury

•  Functions of a Treasury

•  Integration of a Treasury

•  Core functions of a Treasury

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•  Process of a Globalization

•  Evolving Roles of a treasury

•  Organization of a treasury

Consumer Finance, Islamic Banking & MoreSession

-14:

 Consumer

 Finance

 

•  History of Consumer Credit

•  Consumer Credit in Pakistan

•  Types of Consumer Finance:

•  Credit Card

•  Auto/Car Loan

•  Home/Mortgage Loan

•  Personal Loan

•  Consumer RF

•  Loan to Purchase Consumer Durables

•  BTF

•  Difference between Consumer Loan & Lease•  How to obtain a consumer loan? Relevant Procedures & Issues

•  How to deal with Collections/Recovery/Settlement Staff?

Session-15: RIBA Free & Shariah Compliant  Banking 

•  What is RIBA & How is Islamic Banking RIBA free?

•  Is Islamic Banking REALLY Islamic?

•  Modes of Finance used by Islamic Banks:

•  Modarabah – Contract between financier & manager

•  Musharakah – Contractual relationship by mutual consent for profit/loss sharing

•  Murabaha – Sale on mutually agreed profit

•  Ijara – Islamic equivalent of leasing

•  Ijara‐Wal‐Iqtina’ – Islamic Lease Purchase

•  Istisna’a – Agreement to provide finance for Manufacturing & Commodities

•  Musawamah – Sale on price without reference to cost‐to‐seller

•  Salam – Contract for Advance Payment

•  Shirkah – Participatory Mode

•  Sukuk – Islamic Debt Bonds

•  What is TAKAFUL? Who offers TAKAFUL in Pakistan?

Session – 16: Modern Trends in Banking 

•  Technological Advancements

•  Electronic Fund Transfers & Plastic Money

•  Branchless Banking – Myth or Reality

•  CDMs – Cash/Cheque Deposit Machines

•  Regulatory Trends

•  Anti Money Laundering Measures & Compliance Issues

•  BASEL – BASEL‐II Implementation Status

•  Recovery of Non Performing Loans

  Final Comprehensive  Assessment  Test