MPF_EARB Economics and bank management

Faculty of Economics and Administration
Spring 2020
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
Oleg Deev, Ph.D. (lecturer)
prof. Ing. Eva Horvátová, CSc. (lecturer)
Oleg Deev, Ph.D. (seminar tutor)
Guaranteed by
prof. Ing. Eva Horvátová, CSc.
Department of Finance - Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance - Faculty of Economics and Administration
Tue 10:00–11:50 P403
  • Timetable of Seminar Groups:
MPF_EARB/01: Tue 8:00–9:50 P403, O. Deev
MPF_BAN2 Banking 2, BPF_FIMA Financial Mathematics, BPM_STA1 Statistics 1, BPM_MATE Mathematics a BPE_ZAEK Econometrics
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 35 student(s).
Current registration and enrolment status: enrolled: 30/35, only registered: 0/35
fields of study / plans the course is directly associated with
Course objectives
The main objective of the course is to acquaint students with an understanding of commercial bank operations and management. The course is aimed at understanding the behavior of banks, their lending and investment activities, sources of funding and basic principles of risk management. The course is also addressing some of the major trends in domestic and international banking in recent times using the basic tools of economic analysis. Particular attention is given to asset liability and liquidity management and bank's off-balance sheet activities.
Learning outcomes
After successful completion of the course, students should be able to:
- describe and analyze various bank performance measures;
- understand the basic accounting operations in banks and their effects on bank's balance sheet;
- discuss the main types of risk that banks face and explain ways to manage these risks;
- explain the process of loan evaluation, pricing and approval;
- assess bank investment activities, methods of portfolio optimization and immunization;
- understand tools of asset-liability and liquidity management;
- evaluate the effective use of capital and capital adequacy requirements.
  • 1. Bank business model. Evaluating bank performance. Bank balance sheet. Bank income statement.
  • 2. Bank funding. Effective use of capital. Capital adequacy.
  • 3. Liquidity management.
  • 4. Asset liability management. Interest rate risk management.
  • 5. Bank lending activities. Scoring models and credit ratings.
  • 6. Credit risk management. Validation and backtesting.
  • 7. Credit risk management. Concentration risk.
  • 8. Investment management. Pricing fixed-income securities. Managing the investment portfolio.
  • 9. Quantifications of market risk. Vakue-at-risk and Expected Shortfall.
  • 10. Operational risks.
  • 11. Bank valuation.
  • 12. Bank mangement infrustructure.
    required literature
  • POLOUČEK, Stanislav. Bankovnictví. 2. vyd. V Praze: C.H. Beck, 2013. xvi, 480. ISBN 9788074004919. info
  • CIPRA, Tomáš. Riziko ve financích a pojišťovnictví : Basel III a Solvency II. Vydání 1. Praha: Ekopress, 2015. viii, 515. ISBN 9788087865248. info
  • BESSIS, Joël. Risk management in banking. Fourth edition. Chichester: Wiley, 2015. x, 364. ISBN 9781118660218. info
    recommended literature
  • BLAHOVÁ, Naďa. Rizika bank a jejich regulace. 1. vydání. Jesenice: Ekopress, 2018. 283 stran. ISBN 9788087865477. info
  • MEJSTŘÍK, Michal, Magda PEČENÁ and Petr TEPLÝ. Banking in theory and practice. Vyd. 1. V Praze: Karolinum, 2014. 855 stran. ISBN 9788024628707. info
Teaching methods
Lectures and seminars
Assessment methods
For the successful completion of the course students are required::
a) to actively participate in lectures and seminars (the ability to answer questions and solve problems);
b) to submit an individual report on the specified topic (under guidelines) – for presentation and discussion during seminars; c) written exam and oral discussion.
Final grade consists of: the evaluation of the report (up to 5 grade points), active participation in seminars (up to 6 points) and lectures (up to 6 points) and the results of the final exam (up to 20 points).

Rating scale:
A: 92 – 100 % (28 and more points),
B: 84 – 91 % (26 – 27 points),
C: 76 – 83 % (24 – 25 points),
D: 68 – 75 % (21 – 23 points),
E: 60 – 67 % (18 – 20 points),
F: less than 60 % (less than 18 points)
Students in this course are expected to adhere to the Masaryk University’s high standards of integrity as spelled out in the Disciplinary Code for Students and Directive N.3/2008. Anyone who cheats on exams, or who submits essay that is not their own, will be subject to the penalties set forth in the Code. Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.
Language of instruction
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
Credit evaluation note: k = 1.
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2018, Spring 2019, Spring 2021.
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