BankingLaajuus (2 cr)

Objective

The course has objectives according to its two strands, one based on basics of banking and the other based on risk management in banking sector as follows:
1) After classes students will get the basic knowledge about: 1. Bank principles 2. Establishment of bank 3. Bank management; 4. Banking sector in Croatia as opposed to Finland;

2) After classes students will get the basic knowledge about: 1. Causes and consequences of 2008 financial crisis on EU 2. Risk management practices in the corporate sector 3. Measuring and managing market risk 4. Measuring and managing credit risk

Content

The course contents according to its two strands:
Strand 1:
1. Regulation and regulatory capital 1.1. Basel Committee 1.2. Types of capital 1.3. Regulatory capital 1.4. Functions of capital

2. Banking business and the establishment of bank 2.1. Basic financial services 2.2. Additional financial services 2.3. Establishment of bank 2.4. Organizational structure of bank 2.5. Active, passive and neutral banking business

3. Formation and placements of banking funds 3.1. Formation and structure of banking funds (deposit and non-deposit sources) 3.2. Placements of funds (liquid, non-credit, credit)

4. Overview of banks in Croatia and Finland (similarities and differences) 4.1. Banking sector in Finland and Croatia 4.2. Statistical and financial reports

5. Case study

Strand 2:
1. Consequences of financial crisis and Quo Vadis EU 1.1. Causes of 2008 financial crisis 1.2. Spillover channels from US to EU 1.3. Financial products and architecture behind the crisis 1.4. Two-speed Europe - Future of EU?

2. Risk management in the corporate sector 2.1. Concept of financial risk and uncertainty 2.2. Introduction to risk management 2.3. Basic business risks

3. Measuring and managing market risk 3.1. Position risk 3.2. Interest rate risk 3.3. FX risk 3.4. Commodity risk

4. Measuring and managing credit risk 4.1. RAROC 4.2. CreditMetrics 4.3. CreditRisk+
5. Case Study

Evaluation

Evaluation is based on attendance of lectures and case study/exam performance.

Further information

Course is lectured by visiting lecturers Associate professor Saša Žikovi? and Assistant Ivan Gržeta from Faculty of Economics, University of Rijeka.

This intensive course is conducted during 6-10 November 2017 as follows:
- Monday – Wednesday: 4 hours of lectures (2h professor, and 2 hours assistant)
- Thursday: 2 hours of lectures (1h professor and 1 hour assistant)
- Friday: 2 hours (1h Exam and 1h Case study)