ESF:MPF_EARB Economics and bank management - Course Information

MPF_EARB Economics and bank management

Extent and Intensity

2/2/0. 6 credit(s). Type of Completion: zk (examination).

Teacher(s)

Oleg Deev, Ph.D. (lecturer)
prof. Ing. Eva Horvátová, CSc. (lecturer)
Oleg Deev, Ph.D. (seminar tutor)
Ing. Petr Horák (assistant)

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

Timetable

Tue 8:00–9:50 P403, except Tue 29. 3.

• Timetable of Seminar Groups:

MPF_EARB/01: Tue 10:00–11:50 P403, except Tue 29. 3., O. Deev
MPF_EARB/02: Tue 14:00–15:50 VT314, except Tue 29. 3., O. Deev

Prerequisites

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 55 student(s).
Current registration and enrolment status: enrolled: 0/55, only registered: 0/55

fields of study / plans the course is directly associated with

• Finance and Law (programme ESF, N-FIPR)
• Finance (programme ESF, M-FU)
• Finance (programme ESF, N-FIN)
• Finance (programme ESF, N-FU)
• Financial Markets, Institutions and Technologies (programme ESF, N-FIN)

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.

Syllabus

• 1. Banks and Financial Intermediation. Current Trends in Banking.
• 2. Microeconomics of Banking. Models of Bank Behaviour. Credit rationing.
• 3. Bank business model. Evaluating bank performance. Bank balance sheet. Bank income statement.
• 4. Bank funding. Effective use of capital. Capital adequacy.
• 5. Liquidity management.
• 6. Asset liability management. Interest rate risk management.
• 7. Bank lending activities. Scoring models and credit ratings.
• 8. Credit risk management. Validation and backtesting.
• 9. Credit risk management. Concentration risk.
• 10. Investment management. Pricing fixed-income securities. Managing the investment portfolio.
• 11. Quantifications of market risk. Vakue-at-risk and Expected Shortfall.
• 11. Bank valuation.
• 12. Bank management infrustructure.

Literature

required literature
• KOCH, Timothy W. and Steven Scott MACDONALD. Bank management. 8e. Boston: Cengage Learning, 2015, xx, 778. ISBN 9781133494683. info
• POLOUČEK, Stanislav. Bankovnictví. 2. vyd. V Praze: C.H. Beck, 2013, xvi, 480. ISBN 9788074004919. info

recommended literature
• MEJSTŘÍK, Michal, Magda PEČENÁ and Petr TEPLÝ. Banking in theory and practice. Vyd. 1. V Praze: Karolinum, 2014, 855 stran. ISBN 9788024628707. URL 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
• BLAHOVÁ, Naďa. Rizika bank a jejich regulace. 1. vydání. Jesenice: Ekopress, 2018, 283 stran. ISBN 9788087865477. 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

Czech

Further comments (probably available only in Czech)

Study Materials
The course is taught annually.
Credit evaluation note: k = 1.

• Enrolment Statistics (Spring 2022, recent)
  
• Permalink: https://is.muni.cz/course/econ/spring2022/MPF_EARB