Course Description

This course provides a comprehensive introduction to the operations, services, and legal foundations of banking and other financial institutions. Students will explore the evolution of money, the role of financial markets, and the functions of retail, merchant, and central banks. The course examines the banker–customer relationship, the legal and ethical responsibilities of banks, and the competitive dynamics of the financial services industry. Through real-world examples, learners will gain practical insights into modern banking practices, including cheque clearing systems, lending and savings principles, and emerging trends in plastic and electronic banking.

​

Course Objectives

The primary objective of this course is to:

• Develop knowledge of the functions and services performed by banks and other financial institutions.

• Introduce students to the legal basis of the banker–customer relationship.

• Enhance awareness of the scale and impact of competition within the financial services market.

• Equip learners with practical understanding of both traditional and modern banking services.

• ​

Course Learning Outcomes

Upon successful completion of this course, students will be able to:

1. Explain the historical development and characteristics of money and its role in the economy.

2. Describe the structure and purpose of the financial marketplace, including the role of the central bank and various types of banks.

3. Define and analyze the banker–customer relationship, including rights, duties, and legal implications.

4. Identify and differentiate between various types of bank customers and account opening requirements.

5. Understand cheque clearing systems, including crossings, endorsements, and processing.

6. Interpret the balance sheet of a retail bank and explain the basic principles of saving and lending.

7. Evaluate the services offered by banks compared to other financial institutions.

8. Discuss the impact of technology on banking, including plastic cards, telephone banking, and internet banking.

9. Assess the competitive environment of the banking industry and strategies for customer service excellence.

 

Course Content

1. Money

• Barter systems

• Functions and characteristics of money

• Legal tender

 

2. The Financial Marketplace

• Types, purposes, and functions of financial institutions

• The role of the central bank

• Retail, merchant, and other types of banks

• Financial journals and information sources

 

3. Banker–Customer Relationship

• Definitions of banker and customer

• Debtor/creditor relationship

• Rights and duties of the banker

 

4. Bank Customers

• Types of customers: adults, minors, joint accounts, sole traders, partnerships, and companies

• Procedures for opening accounts

 

5. Cheques and Clearing Systems

• Types of crossings and endorsements

• National and international clearing systems

 

6. Bank Functions and Services

• Deposits and advances

• Money transmission and other services

• Balance sheet of a retail bank

• Basic principles of saving and lending

 

7. Plastic and Electronic Banking

• Credit, debit, charge, store, and smart cards

• Telephone and home banking

• Online and mobile banking developments

 

8. Competition in Financial Services

• Banks vs. other types of financial institutions

• Service offerings and customer benefits

• Innovation and customer service strategies

​

​

Course Assessment & Evaluation

• Class Participation and Attendance – 10%

• Midterm Examination – 30%

• Final Examination – 60%