UNIQUE SERIES AKTU Syllabus
BMBF404

Treasury Management in Banking

L-T-P3-0-0 Credits3 Session2025-26 TypeTheory
Appears in 1 semester

MBA Banking & Financial Services · Sem 4 (Core)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Introduction to Treasury Management

8 hrs

Overview of Treasury Management; Meaning, Concept and Importance of Treasury Management in Banking; Role of Treasury in Financial Institutions; Impact of Treasury Operations on Bank Profitability; Functions and Responsibilities of Treasury Department in Banks; Structure and Organization of Bank Treasury; Front Office, Middle Office and Back Office Functions; Regulatory Framework for Treasury Operations; Risk Management in Treasury Operations.

Unit2

Unit 2: Money Markets and Fixed Income Securities

8 hrs

Concept and Structure of Money Market; Money Market Instruments; Treasury Bills; Commercial Papers; Certificates of Deposit; Call Money Market; Repurchase Agreements (Repo); Fixed Income Securities; Bonds; Government Securities; Corporate Bonds; Features and Classification of Fixed Income Instruments; Yield Curves; Bond Pricing; Valuation of Fixed Income Securities; Yield Measurement and Interest Rate Sensitivity.

Unit3

Unit 3: Foreign Exchange Management

8 hrs

Overview of Foreign Exchange Markets; Participants in Foreign Exchange Markets; Foreign Exchange Operations in Banks; Exchange Rate Mechanism; Foreign Exchange Risk Management; Types of Foreign Exchange Exposure; Hedging Techniques; Currency Derivatives; Forward Contracts; Futures Contracts; Options; Swaps; Managing Exchange Rate Fluctuations in International Trade; Role of Treasury in Forex Management.

Unit4

Unit 4: Liquidity and Cash Management

8 hrs

Liquidity Management in Banking and Financial Institutions; Importance of Liquidity Management; Cash Flow Forecasting; Working Capital Management; Cash Position Management; Cash Pooling; Cash Concentration; Cash Positioning Strategies; Liquidity Planning and Optimization; Asset Liability Management (ALM); Liquidity Risk Management.

Unit5

Unit 5: Risk Management and Compliance in Treasury Operations

8 hrs

Financial Risks in Treasury Operations; Identification and Measurement of Risks; Interest Rate Risk; Credit Risk; Market Risk; Operational Risk; Risk Measurement Techniques; Value at Risk (VaR); Basel III Framework and its Impact on Treasury Risk Management; Regulatory Compliance; Internal Controls; Treasury Audit; Reporting Requirements; Corporate Governance in Treasury Operations.

Course Objectives5 points
  • Understand the fundamental concepts and principles of treasury management in the banking sector, including its role in financial institutions and its impact on profitability.
  • analyse different money market instruments and fixed income securities used in treasury operations, including their valuation, pricing, and yield curve analysis.
  • Evaluate foreign exchange management techniques employed by banks to manage currency risk through derivatives and hedging strategies.
  • Examine liquidity management and cash management techniques in banking, including cash flow forecasting, working capital management, and liquidity optimization.
  • Assess risk management practices and regulatory compliance requirements in treasury operations, including identification and management of financial risks and Basel III framework compliance. Course Contents
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Define and explain the fundamental concepts, principles, and functions of treasury management in the banking sector. K2: Understanding
  2. CO2analyse money market instruments and fixed income securities used in treasury operations along with their pricing and valuation techniques. K4: Analysing
  3. CO3Evaluate foreign exchange management techniques and currency risk hedging strategies used by banks. K5: Evaluating
  4. CO4Apply liquidity management and cash management techniques for effective banking operations. K3: Applying
  5. CO5Assess treasury risk management practices, regulatory requirements, and compliance frameworks including Basel III. K5: Evaluating

Suggested Readings (Latest Editions)

  1. Indian Institute of Banking & Finance (IIBF); Treasury, Investment and Risk Management; IIBF Publications.
  2. Datey, V. S.; Treasury and Risk Management: Concepts and Applications.
  3. Seelig, Steven C.; Treasury Management: A Practitioner’s Guide.
  4. Bragg, Steven M.; Treasury Management: The Practitioner’s Guide.
  5. Myint, Stanley & Famery, Fabrice; The Handbook of Corporate Financial Risk Management.
  6. Hull, John C.; Risk Management and Financial Institutions; Wiley.
  7. Mishkin, Frederic S.; The Economics of Money, Banking and Financial Markets; Pearson Education.

Official AKTU syllabus

This subject is on page 21, 22 of the original AKTU PDF.

Official AKTU syllabus PDF ↗