Learning Outcomes
Upon successful completion of the course the student is able
a) to understand the contribution and risks of the banking sector in the European environment
b) calculating and providing for value, performance and sensitivity of money market instruments, the Capital Market and exchange market
c) to understand and manage banking problems and risks
d) to decide on the solvency of banks and their compliance with the rules of Basel III
e) to understand the goals of monetary policy and forms projections on prices, interest rates and the interest rate curve
Course Content (Syllabus)
Purpose
The course aims to give the student a complete picture of the banking sector's contribution to the real economy, and the role of this sector in the money supply and monetary policy.
Object
The object of the course is the functioning of the banking sector and its contribution to the real economy. In particular, are analyzed the structure of the financial system, financial intermediation and the involvement of banks in financing the economy, the creation of money and making payments and transfers. Are also presentef the valuation and balance relations on the money market (bills, interest rates), the capital market (bonds), the foreign exchange market (deferred spread). Moreover are discussed the structure of the Eurosystem and the functioning of the European Central Bank and the objectives and instruments of monetary policy in the Eurozone. Finally are addressed the issue of credit risk and banking supervision, measurement and management of banking risk and provisions of the Basel agreements I, II