International Banking and Insurance Syllabus - BBA-BI (PU)

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Course Description

Course Objectives

The course aims to expose students with the fundamentals of international banking and

insurance. It will also familiarize students with the tools and methods used in international

banking and insurance business.

Course Description

This course provides an understanding of the nature of international banking and insurance business. Specifically, the course covers the fundamental aspects of international banking –introduction to international banking, correspondent banking exchange rates, concepts and techniques of cross-country remittances. The course also provides an overview of global insurance market, global risk and reinsurance, and international insurance forum.

Course Outcomes

On successfully completing this course, students will be able to:

  • understand the evolution of international banking;
  • handle correspondent banking activities;
  • determine foreign exchange rate and execute foreign exchange transaction;
  • understand different concepts used in international remittance and select appropriate
  • means of international remittance;
  • identify global market opportunities of insurance business;
  • explain the role of reinsurance in mitigating the risk; and
  • appreciate the role of international associations in the promotion of insurance business.

Unit Contents

Course Contents

Unit I: International Banking                                                                                   5 hours

Introduction to international banking; the scope of international banking activities; service

offered by international banks; regulation of foreign banking activities; and the future of

international banking.

Unit II: Correspondent Banking                                                                               5 hours

Fund transfer; handling correspondent banking; message authentication; correspondent

banking business model; relationship banking; meeting the correspondent business; credit

line; ethical practice; and Vostro account operation.

Unit III: Basics of Exchange Rates                                                                          5 hours

Exchange rate; causes of rate fluctuation; factors affecting the exchange rate; predicting rate

trends; exchange rate, cross rate; quotation rate; swaps; and outright forward deals.

Unit IV: International Remittances                                                             10 hours

Introduction to international remittances; instruments of payment; inland versus foreign payment; options for international settlement; location of accounts; Nostro, Vostro, Loro and

Mirror accounts; international settlement process; draft in international banking; cheque books from correspondents; TT remittance through Vostro accounts; TT through Nostro

accounts; funding Nostro accounts; maximizing exchange profit; remittance cash position and

currency position.

Unit V: Overview of International Insurance                                                         6 hours

Evolution of international insurance market; cross border activities of insurance; issues in international insurance: ageing problems; and influence of international insurance in Nepalese insurance market.

Unit VI: Global Insurance Market                                                                           6 hours

The status of insurance penetration and density of advanced economies, emerging economies

and developing economies; catastrophic loss and its consequences on global insurance market; global insurance market: Lloyd's of London, the structure of different insurance products in international insurance market; and role of multinational insurance companies in Nepalese insurance market.

Unit VII: Global Risk and Reinsurance                                                                   5 hours

Global risk and risk coping strategies of multinational reinsurance companies; presence of international reinsurance company in Nepalese insurance business; and importance of international insurance companies on mitigating the risk.

Unit VIII: International Insurance Associations and Forum                                   6 hours

Needs and importance of international association; the functions of International Association of Insurance Supervisors (IAIS); Association of Insurance and Reinsurance of Developing Country (AIRDC); Insurance Congress of Developing Countries (ICDC); South Asian Insurance Regulators Forum (SAIRF); Global Federation of Insurance Association; and the role of Geneva Association and SS Huebner Foundation in insurance sector.

Text and Reference Books


  1. Bose, R. Fundamentals of international banking, New Delhi: Macmillan India Ltd.
  2. Rose, P. Money and capital markets: financial institutions and instruments in global

marketplace. Chicago: McGraw-Hill International.

  1. AON Plc. Global insurance market opportunities. London: AON Plc.
  2. Publications of International Association of Insurance Supervisors (IAIS),
  1. Publications of Association of Insurance and Reinsurance of Developing Country (AIRDC),
  1. Publications of Global Federation of Insurance Association,
  2. Publications of Lloyds of London,
  3. Publications of International Insurance Institute,
  4. Publications of The Institute for Global Insurance Education,
Download Syllabus
  • Short Name N/A
  • Course code FIN 337
  • Semester Eighth Semester
  • Full Marks 100
  • Pass Marks 45
  • Credit 3 hrs
  • Elective/Compulsary Compulsary