MODULE 3: Accounting and Finance

Unit 3.4: Banking and Finance

Coordinators:  Batkhuyag Myagmar, Mongolian University of Life Sciences

Lecturer:  Yadmaa Z., Mongolian University of Life Sciences, a Guest lecturer from the List of teachers within the AGRIMBA network (Annex 1)

Banking and finance environment for agribusiness

To improve theoretical knowledge, applied skills in banking and finance.

• Introduction to Financial System
• Financial Markets: Capital and Monetary Markets
• Foreign Currency and Derivative Markets
• Banking System and Monetary Policy
• Commercial Bank Services
• Credit Analysis and Management

Lectures (8 hours)

Interaction with students (4 hours)

Self-guided group work

1. Relations of Financial Statements; Reading Financial Performances of Business and Ratio Analysis (Profitability, Liquidity, and Leverage Analysis); Du-Pont Scheme and Bankruptcy Diagnosis
2. Risk and Return; Time Value of Money; Valuation Approaches; Discounted Cashflow Method and Its Use in Security Valuation
3. Cashflow Projection and Pro-forma Financial Statements; Sales Forecasting.
4. Capital Budgeting and Its Similarities with Project Management; Estimating Relevant Cashflows of Capital Projects; Capital Budgeting Techniques (Payback Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR) and Profitability Index (PI))
5. Fixed and Variable Costs and Their Effect on Profit; Operating, Financial and Total Leverages; Capital Structure and Leverages
6. Working Capital Investment Management (Relax, Moderate, and Restrict Investment Approaches); Working Capital Financing Management (Aggressive, Moderate and Conservative Financing Approaches)

Carrying out of banking and finance-related problems and evaluation tests

Written and oral exam

Banking and Finance, 2013, 1st edition, Britannica Educational Publishing, Brian Duignan