Banking and asset management

Chapter 0 - Technical pre-requisites / Chapter 1 - Classic bank intermediation activities and overview of banks’ balance sheets (Main funding sources of banks / Main types of assets of banks (with a special focus on the types of credits and the techniques of banking)) / Chapter 2 – Other activities commonly performed by financial institutions (Asset management / Payment systems and custody / Capital markets & investment banking) / Chapter 3 - Main components of banks’ income statement / Chapter 4 - Overview of the main risks and capital adequacy (Credit risk / Interest rate risk / Liquidity risk / Market risk / Operational risk / The increasing importance of governance and business model / Solvency requirements / Regulatory capital requirements / Economic capital) / Chapter 5 - Regulatory requirements and banking supervision (Overview of main regulatory requirements as per Basel / CRR-CRDIV / The financial and sovereign crises of 2007-2012 / Banking supervision in practice) / Chapter 6 - Selected other topics

This course aims at introducing students to: The principles and techniques of banking and bank management / The main activities of banks (with a focus on retail and commercial banks) and asset management companies, essentially from a business perspective / The fundamentals of the analysis of banks’ financial statements, P&L and KPIs / The main types of risks banks are exposed to and best practices for their sound measurement and management / The main regulatory and supervisory constraints in which banks operate, and the influence of the financial and sovereign crises over 2007-2012 in the policy making.

Lectures and supervised exercises.

Contribution to the teaching profile

This course is expected to contribute to the Intended Learning Outcomes of the Master in Business Economics in the following areas: 1/ Subject-specific knowledge (Thorough and critical understanding of fundamental economic concepts and models as they apply to decisions made by individuals, firms and policy-makers / Thorough and critical understanding of the working, benefits and limits of markets, as well as regulatory approaches and their limitations / Knowledge of key macro and sector-specific facts and economic trends and their drivers / Thorough knowledge of corporate financial techniques, reporting standards and practices / Knowledge of the key mechanisms of economic governance, at the European and national levels) 2/ Subject-specific skills (Take the perspectives and incentives of different stakeholders into account to ensure accurate problem analysis and effective implementation of projects or decisions) 3/ Key (transferrable) skills (Develop an independent approach to learning and show adaptability to new environments / Implement a scientific approach to knowledge and reasoning / Display critical thinking / Demonstrate analytical rigor and work ethics)

References, bibliography, and recommended reading

The following books are recommended (but not mandatory): 1/ Boudghene Y. , De Keuleneer E. (2016), Pratiques et Techniques Bancaires, Larcier; 2/ Bessis, Joël, 2015, Risk Management in Banking, 4th edition, Wiley; 3/ Kohn, Meir, 2004, Financial Institutions and Markets, 2nd edition, Oxford University Press. Several readings and case studies will also be provided

Contacts

Yassine.boudghene@gmail.com

Method(s) of evaluation

• written examination

written examination

Written exam

Mark calculation method (including weighting of intermediary marks)

Written exam (100%)

Language(s) of evaluation

• english