Financial Institutions

1/ Financial institutions and financial system: Features – financial institutions and financial markets, structure of financial system; From regulated entities (banks, insurance companies, mutual funds) to unregulated shadow financial institutions (shadow banks, fintechs); systemic risk, financial stability, idiosyncratic risks;

2/ Economic analysis of financial institutions: analysis of financial statements of commercial banks, investment banks, insurance companies and asset management companies; competition and structure of financial industry.

3/ Risks in financial institutions: Regulatory standards for risk management: Basel capital adequacy in banks, Solvency II in insurance companies, Regulations of mutual funds; Market risk assessment and management: interest rate risk, currency risk, stock market prices risk; Credit risk assessment: role of credit rating and credit scoring; Liquidity risk from international perspective; Operational risk.

4/ Regulation and supervision of financial institutions: financial safety net and moral hazard; micro-prudential versus macroprudential regulations; financial stability and financial crises

Books (selected book chapters are obligatory):

Mishkin F., 2004, The economics of money, banking and financial markets, Pearson, Addison Wesley. (accessible online)

Resti A., Sironi A., 2007, Risk management and shareholders value in banking, Wiley & Sons (accessible online)

Barth J.R., Caprio G. JR, Levine R., 2006. Rethinking bank regulation. Till Angles govern. Cambridge (accessible online)

Guttman R., 2016. Finance-led capitalism. Palgrave Macmillan.

Other materials, e.g. links to example regulatory standards, research papers (if necessary) shall be delivered during lectures.

Lecture, Discussion, case study

Written exam 100%, comprising definitions, computational exercises, interpretations of data included in tables. The exam will be conducted online on E-nauka platform