ABOUT THE COURSE:The course is designed to give practical exposure to students who are interested in understanding the functioning of monetary policy, money markets, banking sector balance sheets, banking sector regulations, financial sector linkages with banking sector, banking sector performance indicators and financial institutions role such as fintech and how market mechanism shapes the functioning of the banking and financial institutions. The course is extremely useful for economics students, both undergraduate and master's, business, and those who want to make a career in this field. The practical approach is fascinating, and it will help understand the functioning of the banking and financial institutions beyond the theory of money and banking.INTENDED AUDIENCE: UG & PG from any disciplinesINDUSTRY SUPPORT: Banking and Financial Services Firms

Syllabus

Week 1: Introduction to Commercial Banking: The role of banking in the economy and how they are interlinked with macroeconomic aggregates and policy variables.
Week 2:Macroeconomics of Commercial Banking – I: Understanding the macro-side of the banking sector and its connection with different monetary policy transmission channels
Week 3:Macroeconomics of Commercial Banking – II: The IS-LM framework of monetary policy transmission with reference to credit market imperfections and the critical role of the banking sector.
Week 4:Credit Creation Mechanism: The money creation system of the banking sector and its connection with the money supply.
Week 5:Balance Sheets of Commercial Banks: Understanding income and balance sheet statements for banks and financial institutions: Assets versus liabilities with reference to special indicators
Week 6:Performance and Risk Analysis of Commercial Banks: Banking sector performance and risk measures: CAMELS Analysis, balance sheet-based risk indicators, systemic risk understanding
Week 7:Indian commercial banking system: The peculiar characteristics of India's monetary management and banking system. Non-banking financial system and its importance, discussion on the financial stability report.
Week 8:Banking Sector Regulations: Understanding the global architecture of banking sector regulations and the role of central banks, different standards and measures
Week 9:Macroprudential risk and commercial banking: Introduction to different risk measures linked to systemic risk and their impact on the day-to-day functioning of commercial banks
Week 10:Fintech and Its Importance: Conceptual understanding of fintech, regulations, sandboxes and their interdependence with financial institutions
Week 11:Fintech startup ecosystem: Understanding account aggregators and Fintech-NBFCs collaborations, Co-lending models, fintech deepening and access to credit
Week 12:Summary of recent developments in the fintech domain: Fintech bridge and how recent regulations are shaping the fintech startup ecosystem in banking, the All-Ways Amendment Act 2025, digital banking and co-lending framework.