BPF_TFSC	
  Transformation	
  of	
  the	
  Financial	
  System	
  –	
  Syllabus	
  
	
  
Course	
  objectives	
  
The	
  main	
  objective	
  of	
  the	
  course	
  is	
  to	
  acquaint	
  students	
  with	
  the	
  concept	
  of	
  financial	
  system,	
  the	
  
necessity	
   and	
   importance	
   of	
   financial	
   transformation	
   in	
   the	
   chosen	
   emerging	
   countries,	
   and	
  
possibility	
   of	
   transformation	
   process	
   of	
   the	
   financial	
   system	
   to	
   affect	
   economic	
   development.	
  
Students	
   will	
   be	
   able	
   to	
   examine	
   current	
   issues	
   and	
   developments	
   influencing	
   the	
   global	
   or	
  
domestic	
  financial	
  sector	
  of	
  the	
  economy	
  from	
  the	
  historical	
  perspective.	
  Students	
  should	
  also	
  
be	
  capable	
  of	
  discussing	
  advantages	
  and	
  disadvantages	
  of	
  transformation	
  process	
  in	
  the	
  chosen	
  
emerging	
  countries	
  and	
  understanding	
  the	
  causes	
  and	
  consequences	
  of	
  the	
  2007-­‐2010	
  global	
  
financial	
  crisis.	
  The	
  subjects	
  of	
  discussion	
  in	
  the	
  course	
  are	
  chosen	
  due	
  to	
  their	
  demonstrative	
  
power	
  to	
  show	
  successfulness	
  of	
  the	
  transformation	
  process	
  of	
  the	
  economy	
  in	
  both	
  Western	
  
and	
   Eastern	
   civilization	
   models	
   (the	
   Czech	
   Republic	
   and	
   the	
   People’s	
   Republic	
   of	
   China,	
  
respectively)	
   along	
   with	
   struggling,	
   possibly	
   worst	
   case	
   scenario	
   of	
   the	
   transformation	
   (the	
  
Russian	
  Federation).	
  
	
  
Lectures	
  Outline	
  
1. Introduction	
   to	
   the	
   Course.	
   Financial	
   System	
   and	
   its	
   Transformation:	
   Basic	
   Definitions	
  
and	
  Concepts.	
  
2. Global	
  Financial	
  System:	
  Concept,	
  Evolution	
  and	
  Major	
  Institutions.	
  
3. Financial	
  Crises	
  and	
  Its	
  Impact	
  on	
  the	
  Financial	
  System.	
  
4. China’s	
   Economic	
   Transition:	
   Key	
   Factors	
   of	
   Economic	
   Development,	
   Reformation	
  
Process,	
  Results	
  of	
  the	
  Economic	
  Transformation,	
  Challenges	
  for	
  the	
  Future.	
  
5. Financial	
   System	
   of	
   China:	
   Banking	
   System,	
   Financial	
   Markets,	
   Regulation	
   and	
  
Supervision.	
  
6. Economic	
   Transition	
   of	
   Russia:	
   Key	
   Factors	
   of	
   Economic	
   Development,	
   Transformation	
  
Procedures,	
   Results	
   of	
   the	
   Economic	
   Transformation,	
   the	
   1998	
   Financial	
   Crisis,	
  
Challenges	
  for	
  the	
  Future.	
  
7. Financial	
  System	
  of	
  Russia:	
  Banking	
  System,	
  the	
  1998	
  Banking	
  Crisis,	
  Financial	
  Markets.	
  
8. Economic	
  Transition	
  of	
  the	
  Czech	
  Republic.	
  
9. Banking	
  System	
  of	
  the	
  Czech	
  Republic.	
  
10. Prague	
  Stock	
  Exchange:	
  Profile,	
  History,	
  Rules,	
  Trading	
  Groups,	
  and	
  Exchange	
  Indices.	
  
11. Capital	
  Market	
  of	
  the	
  Czech	
  Republic:	
  Structure,	
  Present	
  State,	
  Expected	
  Developments,	
  
and	
  Specific	
  Aspects.	
  
12. Market	
  Regulation	
  and	
  Protection	
  in	
  the	
  Czech	
  Republic	
  (SEC).	
  
13. Financial	
  Management	
  in	
  Czech	
  Firms:	
  Principles	
  and	
  Practices.	
  
	
  
Literature	
  
Essential	
   readings	
   will	
   be	
   announced	
   at	
   the	
   end	
   of	
   each	
   lecture	
   (Students	
   are	
   expected	
   to	
  
prepare	
  themselves	
  for	
  lectures	
  by	
  reading	
  the	
  provided	
  materials	
  beforehand).	
  
Basic	
  definitions	
  and	
  concepts	
  of	
  the	
  course	
  are	
  covered	
  in:	
  
Mishkin,	
  F.	
  S.,	
  and	
  Eakins,	
  S.	
  G.	
  (2012).	
  Financial	
  Markets	
  and	
  Institutions,	
  7th	
  edition.	
  Pearson.	
  
Outline	
  of	
  the	
  lectures	
  are	
  available	
  in	
  the	
  Study	
  Materials.	
  
	
  
Teaching	
  methods	
  
The	
   course	
   is	
   taught	
   in	
   lectures	
   only,	
   which	
   include	
   class	
   discussions	
   and	
   require	
   active	
  
participation.	
  Essays	
  improve	
  the	
  ability	
  of	
  students	
  to	
  summarize	
  a	
  certain	
  issue	
  in	
  the	
  field	
  of	
  
transformation	
  of	
  the	
  financial	
  system	
  and	
  discuss	
  it	
  critically.	
  Readings	
  serve	
  to	
  broaden	
  and	
  
deepen	
  the	
  spectrum	
  of	
  knowledge	
  students	
  acquire	
  during	
  the	
  lectures.	
  
	
  
Assessment	
  methods	
  
For	
   the	
   successful	
   completion	
   of	
   the	
   course	
   students	
   are	
   required	
   to	
   submit	
   an	
   essay	
   on	
   the	
  
specific	
  topic	
  (the	
  list	
  of	
  topics	
  is	
  available	
  in	
  the	
  Study	
  Materials)	
  and	
  take	
  a	
  written	
  exam	
  (test	
  
of	
  20	
  questions	
  or	
  problems	
  with	
  multiple	
  choices	
  –	
  up	
  to	
  20	
  grade	
  points).	
  Exam	
  questions	
  are	
  
based	
  on	
  basic	
  definitions	
  and	
  concepts	
  discussed	
  in	
  the	
  course,	
  the	
  analysis	
  of	
  developments	
  in	
  
financial	
  systems	
  of	
  Russia,	
  China	
  and	
  the	
  Czech	
  Republic,	
  as	
  well	
  as	
  essential	
  readings.	
  Students	
  
will	
   not	
   be	
   allowed	
   to	
   take	
   an	
   exam	
   without	
   submitting	
   an	
   essay	
   with	
   all	
   the	
   requirements	
  
fulfilled.	
  Excellent	
  essays	
  would	
  be	
  awarded	
  with	
  additional	
  grade	
  points	
  (up	
  to	
  10).	
  
Additional	
   grade	
   points	
   (up	
   to	
   10)	
   might	
   be	
   also	
   gained	
   for	
   the	
   lecture	
   participation,	
   which	
  
means	
   that	
   student	
   is	
   actively	
   watching,	
   listening	
   and	
   answering	
   questions	
   as	
   the	
   lecture	
  
progresses.	
  Student	
  tries	
  to	
  solve	
  the	
  suggested	
  example	
  problems	
  as	
  the	
  lecture	
  proceeds	
  and	
  
proves	
  that	
  he/she	
  has	
  learned	
  the	
  material	
  by	
  answering	
  the	
  related	
  questions	
  and	
  working	
  the	
  
related	
  problems	
  incorporated	
  in	
  the	
  summative	
  assessment.	
  
	
  
Essay	
  requirements:	
  
1. An	
  essay	
  should	
  express	
  your	
  own	
  opinions	
  and	
  thoughts,	
  based	
  on	
  facts	
  or	
  supported	
  by	
  
experts’	
  opinions	
  expressed	
  in	
  books,	
  scientific	
  articles,	
  newspaper	
  or	
  magazine	
  articles,	
  or	
  
economic	
  reviews	
  (Please	
  use	
  materials	
  only	
  relevant	
  to	
  the	
  topic).	
  Quotations	
  are	
  obligatory	
  
and	
  should	
  be	
  integrated	
  into	
  writing.	
  At	
  least	
  five	
  sources	
  should	
  be	
  used	
  for	
  the	
  writing.	
  	
  
2. An	
   essay	
   must	
   be	
   one	
   page	
   long	
   and	
   should	
   be	
   well-­‐organized.	
   Begin	
   the	
   essay	
   with	
   an	
  
introduction	
  stating	
  the	
  aims	
  of	
  the	
  essay	
  and	
  conclude	
  with	
  a	
  summary	
  bringing	
  together	
  
the	
  main	
  issues	
  investigated	
  in	
  the	
  essay.	
  
3. ESF	
  official	
  formatting	
  requirements	
  must	
  be	
  fulfilled	
  (Times	
  New	
  Roman,	
  font	
  size	
  of	
  12	
  
points,	
  1.5	
  spacing	
  between	
  the	
  lines,	
  heading	
  with	
  student’s	
  name,	
  UČO	
  and	
  topic).	
  
4. An	
   essay	
   should	
   be	
   written	
   in	
   English	
   and	
   be	
   spell-­‐checked,	
   grammar-­‐checked	
   and	
  
personally	
  proofread.	
  
5. List	
  of	
  references	
  is	
  required	
  and	
  might	
  be	
  put	
  on	
  the	
  second	
  page	
  (use	
  generator.citace.com	
  
for	
  its	
  compilation).	
  	
  
6. Any	
  tables	
  and	
  figures	
  should	
  be	
  placed	
  on	
  the	
  second	
  page.	
  
7. Essay	
  should	
  be	
  submitted	
  to	
  the	
  Homework	
  Vaults	
  by	
  April	
  21,	
  2014.	
  	
  
8. Non-­‐satisfactory	
   essays	
   will	
   be	
   awarded	
   with	
   zero	
   grade	
   points.	
   Essays	
   with	
   a	
   clear	
  
structure,	
  a	
  good	
  understanding	
  of	
  the	
  material	
  and	
  originality	
  in	
  the	
  approach	
  are	
  likely	
  to	
  
achieve	
  a	
  good	
  mark.	
  
	
  
Grading	
  
Final	
  grades	
  would	
  be	
  given	
  according	
  to	
  the	
  following	
  grading	
  scale:	
  
A	
  =	
  28-­‐30+	
  
B	
  =	
  26-­‐27	
  
C	
  =	
  23-­‐25	
  
D	
  =	
  21-­‐22	
  
E	
  =	
  18-­‐20	
  
F	
  =	
  below	
  18	
  
Plus/minus	
  grading	
  at	
  student’s	
  request	
  will	
  not	
  be	
  used	
  in	
  this	
  course.	
  
	
  
Ethics	
  Policy	
  
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.	
  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	
  and	
  aids	
  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.