Principles of banking and finance

2023/2024

Учебный год

ENG

Обучение ведется на английском языке

4

Кредиты

Кто читает:

Департамент финансового менеджмента

Статус:

Курс по выбору

Когда читается:

2-й курс, 3, 4 модуль

Преподаватель

Кестнер Ирина Владимировна

Course Syllabus

Abstract

Principles of Banking and Finance is an introductory one-semester course for second-year undergraduate students. The course is taught in English. It covers the principles of finance and the principles of banking. It discusses the role and rationale of financial intermediation in the economy and the standard tools of risk management for financial institutions. Course prerequisites Basic knowledge of micro/ macroeconomics and calculus/statistics is required. The course itself provides a basis (and thus serves as a prerequisite) for more advanced courses in banking and finance such as Asset Pricing and Financial Markets, Corporate Finance, etc.

Learning Objectives

• The course provides students with foundational analytical and institutional knowledge in banking and finance.
• Students should be able to discuss the main theoretical and empirical drivers of financial and real asset valuation. Students are also expected to acquire general knowledge about standard financial assets.
• Students should also be able to explain the role and origins of financial intermediaries and the methods used by banks to manage various types of risk.

Expected Learning Outcomes

• Discuss why financial systems exist, and how they are structured
• Students should be able to discuss the main theoretical and empirical drivers of stock valuation.
• Students should be able to discuss the main theoretical and empirical drivers of valuation of fixed income securities
• Understand how risk affects the return of a risky asset, and hence how risk affects the value of the asset in equilibrium under the fundamental asset pricing paradigms (Capital Asset Pricing Model and Asset Pricing Theory)
• Be able to proceed with different project valuation techniques (NPV<, IRR< SPB, DPB) and understand key differences
• Discuss the main types of risks faced by banks, and use the main techniques employed by banks to manage their risks.
• Understand why financial intermediaries exist and discuss the role of transaction costs and information asymmetry theories in providing an economic justification
• Learn different types of financial markets, intermediaries and instruments

Course Contents

• Introduction
• Financial markets and instruments
• Capital Budgeting and Valuation
• Valuation of Fixed-Income Securities
• Risk and return. Asset pricing theories
• Stock valuation
• Role of financial intermediation
• Risk management and internal control in banks
• Banking regulation

Assessment Elements

• Home assignment
• Classwork
• Final examination
• Revision quiz

Interim Assessment

• 2023/2024 4th module
  0,25*Home Assignments + 0,15*Classwork + 0,20*Revision Quiz + 0,40*Final examination

Bibliography

Recommended Core Bibliography

• Financial institutions management : a risk management approach, Saunders, A., 2018
• Financial markets and institutions, Mishkin, F. S., 2018

Recommended Additional Bibliography

• Comparing financial systems, Allen, F., 2001