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
References
- Bose, R. Fundamentals of international banking, New Delhi: Macmillan India Ltd.
- Rose, P. Money and capital markets: financial institutions and instruments in global
marketplace. Chicago: McGraw-Hill International.
- AON Plc. Global insurance market opportunities. London: AON Plc.
- Publications of International Association of Insurance Supervisors (IAIS),www.iaisweb.org
- Publications of Association of Insurance and Reinsurance of Developing Country (AIRDC), www.airdc.org
- Publications of Global Federation of Insurance Association, www.gfiainsurance.org/
- Publications of Lloyds of London, https://www.lloyds.com/
- Publications of International Insurance Institute, www.insuranceinstitute.com/
- Publications of The Institute for Global Insurance Education, www.igie.org/
- Short Name N/A
- Course code FIN 337
- Semester Eighth Semester
- Full Marks 100
- Pass Marks 45
- Credit 3 hrs
- Elective/Compulsary Compulsary