Accueil > Management of Banking and Financial Institutions

DECO 1835A - Management of Banking and Financial Institutions

Type d'enseignement : Elective

Semester : Spring 2017-2018

Number of hours : 24

Language of tuition : English

Pre-requisite

Macroeconomics, Money and Banking.

Course Description

This course aims at providing an understanding of the transformation at work in banking sector since the “subprime” crisis and the European sovereign debt crisis. The course will first focus on the US banking and financial system since the “subprimes” crisis started there with the disruption of the subprime market. It will explain the basics of banking management and the major characteristics of the US banking system specific to the US and shared by the European banking systems. A special attention will be dedicated to the Basel Accord. Basel III is fully implemented at the European level and we will discuss the merits of the changes introduced in the light of the crisis. We will also discuss the merits of the government and monetary authorities' intervention and its potential negative consequences in particular the different European rescue plan to “save” the Euro area and the European banks and to what extent the European Banking Union will overcome them. The course begins with a brief overview of the financial system and a presentation of the nature banking activities. Explaining the basics will help students understanding the apparent complexity of the contemporary banking and financial system.

Teachers

JANSON, Nathalie (PhD. Associate Professor)

Pedagogical format

Class is an opportunity for illustrating and discussing further the concepts presented in the readings and it is therefore interactive. Students will work in team (ideally 3 students) to prepare oral presentations. The topic of the presentations will mainly focus on discussing the issues related to the ongoing banking and financial crisis. Assessment: Weekly pop quiz 20%. Final Comprehensive quiz 30%. Presentation 50%.

Course validation

To pass the course the student should have a clear understanding of: 1- The organization of the financial and banking system in developed economies like US and Euro. They should have a clear view of the changes that have affected the bank's traditional business in the last 30 years. 2- The banks' management and banking risk management. 3- The mortgage market, subprime market and the securitization process. 4- The role played by the major banking and monetary authorities and their intervention during the crisis. 5- Bank capital regulation: the Basel II and Basel III accord. 6- Government implicit/explicit protection of banking and financial institutions and regulations' efficiency. 7- The European Banking Union.

Workload

Students are expected to read before class the indicated chapters from the textbooks: Mishkin F. S (M), The Economics of Money, Banking and Financial Markets, (9h edition, Pearson Addison Wesley, 2009) and Greenbaum & Thakor (GT), Contemporary Financial Intermediation (2nd edition, Elsevier, 2007) and from additional readings. Therefore the students should expect to spend at least 2 hours to prepare each session.

Required reading

Students are expected to read before class the indicated chapters from the textbooks: Mishkin F. S (M), The Economics of Money, Banking and Financial Markets, (11h edition, Pearson Addison Wesley, 2016) and Greenbaum & Thakor (GT), Contemporary Financial Intermediation (2nd edition, Elsevier, 2007) and from additional readings. Therefore the students should expect to spend at least 2 hours to prepare each session