Corporate Banking for small and medium sized firms (E)

First Cycle

The students will receive an overview about the services and
products banks are offering for corporate customers. They
should know, how corporates can finance via bank debt,
which documents are necessary to be provided and how a
rating process is conducted. They should be also in the
position to know, which other products banks are offering, so
that corporations can do their business. The participants will:
· Gain understanding about the functions of a bank and
some important regulations
· Receive knowledge about the risk management
process of a bank, how it is affecting corporate
customers and which information is necessary to
appraise credit decisions
· Receive knowledge about how interest rates are
quoted, which components are charged by banks and
how rating is affecting the credit spread of a firm
· Receive an overview about financing instruments
banks are offering to corporate customers
· Experience how short- and long-term financing are
used within a company for the financing of operational
and strategic business
· Receive an overview about trade financing
instruments and their applications in business practice
· Learn how companies can protect against risks in
exports/imports and which products could be used for
this aspect
· Receive an overview about savings and portfolio
management and which products banks are offering
for this opportunities
· Receive an overview about different payment systems
and cash management instruments for practical
application
· Receive an overview about risk management
instruments to protect against unfavourable
developments in interest rates and exchange rates
and how banks can assist in this case

Basic knowledge in business administration

· Basics of banking (bank balance sheet and income
statement, the purpose of banking, risk management
and regulations)
· Rating & credit risk process (creditworthiness, rating
categories, probability of default, rating system,
information management, segregation of duties within
banking appraisal process, Basel II and III)
· Corporate finance (short- and long-term financing:
overdraft, revolving facilities, long-term debt, leasing,
factoring, debt covenants, margin grids)
· Trade finance (trade credit, D/P, pre-payment, check,
insurance)
· Portfolio management & savings (money market,
commercial papers, interest bearing account, funds
etc.)
· Cash Management & payment services (SEPA,
electronic and online banking, cash pooling)
· Securities (fixed assets, trade receivables, mobile
assets, leasing, real estate, value of securities)

Berk, J. & Demarzo, P. (2014). Corporate Finance, Pearson.
Booth, L, Cleary, S. & Drake, P. (). Corporate finance:
Financial management in a global environment, John
Wiley & Sons.
Casu, B., Girardone, C. & Molyneux, P. (2006). Introduction
to banking, Pearson.
Hillier, D., Ross, S., Westerfield, R. & Jaffe, J. (2010).
Corporate Finance, McGraw Hill.
Lumby, S. & Jones, C. (2011). Corporate finance: Theory and
practice, Cengage.

Final examination

Englisch

3

0

2.0

Presentation, group works, discussion

2

Dr.Mario Situm

1

IP_BUS113

Integrierte Lehrveranstaltung

Pflichtfach

not applicable