30178 - INTERNATIONAL BANKING
Course taught in English
Class-group lessons delivered on campus
Basic knowledge of the financial system is useful. Bocconi students should have taken the course Financial Markets and Institutions. However, there are many different backgrounds in class. Thus, we will first do some “basic concepts” of the financial system and will then continue with some more advanced topics.
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; (4) Bank governance and Executive compensation; (5) Banking, growth and crises; (6) Fintech and cryptocurrency; 7) Climate risk. 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
- Capital, liquidity, and macro-prudential regulation
- Bank union and resolution
- Bank governance, executive compensation and risk taking
- Banking, growth and crises
- Fintech and crypto currency
- Climate risk
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 as well as of the Ukraine invasion 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)
- Exercises: there are at least four exercise type classes, where the concepts learnt in the lectures are applied to solve concrete problems.
There is no distinction between attending and non-attending students.
Students are evaluated based on a final (general) exam. The exam is closed book and is composed by multiple choice questions, true/false questions, and exercises based on the entire program of the course.
Students may also decide to be evaluated through two partial exams. Each partial will count 50% of the final grade. Students must pass both partial exams in order to pass the exam, i.e., you must obtain at least 18 in both of them.
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.
A reading list with precise references will be distributed at the beginning of the course. The relevant book chapters will be available through an e-book edition of the book.
Slides and other relevant material prepared by the instructors will be posted in Blackboard.