BANKING AND INSURANCE THEORIES, LAWS AND ACCOUNTS

Course Code 8241 Marks: 100 Credits: 4 Class Hours: 60
Course Title: BANKING AND INSURANCE THEORIES, LAWS AND ACCOUNTS
Part-A: Banking Theories, Laws and Accounts (50%)
1. Introduction: Definition, Evolution, Classification, Functions, Objectives, and Principles of Bank,
Functions of commercial bank, Objectives of Commercial Bank, Forms of advance, Types of
security, Electronic banking services, Functions of central bank, Credit control of central bank,
Principles of note issue, Method/systems of note issue, Role of bank in economic development,
Structure of banking system in Bangladesh.
2. Banking Company in Bangladesh: Business and licensing of bank companies, Paid up capital and
reserves, Appointment and removal of directors and chief executive officer, Illegal banking
transactions by companies, Acquisition of the undertaking of banking companies, Suspension of
business and winding up of banking companies, Restriction on loans and advances, Issuance of policy
directions by BB, Remission of loans, Classified Loan and Loan Loss Provisions, Operation and
management, Inspection and investigation, Submission of return and reports.
3. BB’s Guidelines for Banks: Corporate Governance Guidelines, and Guidelines on Risk Based
Capital Adequacy for banks.
4. Financial Statements of Banking Companies: Preparation of Financial Statements of Banking
Companies as per BB’s Guidelines.
Part-B: Insurance Theories, Laws and Accounts (50%)
1. Insurance Company in Bangladesh: Definition and Evolution of Insurance, Functions, Importance
and Classification of Insurance, Essential element of insurance, Insurable interest, Classification of
insurance policies under life insurance, marine insurance and fire insurance, Reinsurance.
2. Insurance Company in Bangladesh: Insurance Development and Regulatory Authority (IDRA),
Registration and renewals, Determination of premium rates, Capital and deposits, Margin of safety,
Insurable interests, Actuarial report and abstract, Registers, Submission of returns, Investment of
assets, Solvency margin, Loans and Management, Investigation and power of regulatory authority,
Assignment and transfer of policies, Commissions, rebates and management expenses, Distribution of
dividend, bonus and profit, Licensing of agents, Survey and surveyors.
3. Calculation of Premium and Claims of Insurance: Calculation of net single and annual premium of
life insurance, Methods of payment of claim in life insurance, Calculation of loss and actual claims in
marine insurance and fire insurance.
4. Financial Statements of Insurance Companies: Preparation of Financial Statements of Insurance
Companies as per Guidelines of the IDRA.
Reference Statutes:
1. ICAB, Corporate Laws and Practices (Professional Stage Application Level).
2. The Banking Companies Act, 1991
3. The Bangladesh Bank Order 1972
4. The Insurance Act, 2010
5. Insurance Development and Regulatory Authority Act 2010.