30178 - INTERNATIONAL BANKING
Course taught in English
Class-group lessons delivered on campus
Basic knowledge of the financial system is useful.
The course focuses on the role of banks and other financial institutions. The course will discuss (1) the main types of financial institutions and the risks they face; (2) banks’ liquidity management and systemic risk; (3) the regulatory framework, with particular emphasis on capital requirements and the resolution framework, and the relationship with accounting; (4) executive compensation (5) the challenges for the financial industry due to the low interest rate environment and the Covid-19 crisis. Particular attention will be devoted to the European banking industry throughout the course.
- Commercial and investment banks: Activities and challenges
- Financial risks
- Liquidity and systemic risk
- Interconnectedness between banks and mutual funds and hedge funds: implications for systemic risk
- Executive compensation
- Capital, liquidity, and macro-prudential regulation
- The relationship between accounting and prudential regulation
- Bank resolution framework and state aid
- Low interest rate environment (LIRE)
- Post Covid-19: Main events and the future of banking
The main objective of the course is to provide students with an in-depth analysis of the functioning of the banking industry, the risks and challenges it faces and the regulatory framework. Emphasis is given to the main consequences of the Covid-19 outbreak for the future of the banking industry.
Analyze the risks affecting financial institutions, evaluate their solvency state, develop the implications of financial regulation for bank business and design crisis management tools.
- Face-to-face lectures
- Guest speaker's talks (in class or in distance)
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
- Guest speakers: there is at least one guest lecture with experts from private banks or central banks
- Exercises: there are at least five exercise type classes, where the concepts learnt in the lectures are applied to solve concrete problems.
- Case studies: there are various case studies to understand the application of the concepts learnt in class to the real world.
There is no distinction between attending and non-attending students. The evaluation of the course is based on a final exam. No partial exams or any other form of evaluation are envisioned.
The exam will comprise multiple choice questions, True/false questions and exercises. The questions will enable to assess students’ knowledge and understanding of the material covered during the course concerning the functioning of the banking industry as well as the risks and challenges it faces. The exercises will instead enable to assess students’ ability to apply their knowledge to practical situations as well as their quantitative skills.
The reference list is communicated at the beginning of the course.