Modern Banks and Banking Systems

2026/2027

Учебный год

ENG

Обучение ведется на английском языке

4

Кредиты

Кто читает:

Департамент мировой экономики

Статус:

Курс по выбору

Когда читается:

3-й курс, 1, 2 модуль

Преподаватель

Мухаметов Оскар Рустямович

Course Syllabus

Abstract

This course covers a comprehensive set of issues related to the economic and institutional aspects of banking, ranging from the microeconomic foundations of financial intermediation to the role of banks in financial stability and monetary transmission. The syllabus consists of three main blocks: the economic nature and internal operations of banks, risk management and prudential regulation, and contemporary trends shaping the evolution of banking business models. The thematic scope includes the study of mechanisms and patterns of bank behavior in credit and liquidity markets, the architecture of bank balance sheets and performance metrics, banking risks and the evolution of both macroprudential and macroprudential regulation.

Learning Objectives

• • Formation of students' competencies necessary for a holistic and objective understanding of economic categories, principles, processes, and prospects in the field of modern banking, including the institutional dimension of financial intermediation and the role of banks in the economy.
• • Acquisition by students of analytical and critical thinking skills in the field of banking, including the role and significance of banks in credit allocation, liquidity transformation, and risk management, as well as the impact of banking sector dynamics on financial stability and economic growth.
• • Understanding by students of the mechanisms and regularities in banking in the context of the specific features of the current state and development prospects of financial markets, including the interaction between banks and non-bank financial intermediaries.
• • Development of practical skills in bank financial analysis, credit risk assessment, calculation of key performance indicators (NIM, ROA, ROE, RAROC), and application of regulatory capital and liquidity standards (Basel III).
• • Formation of competencies necessary for evaluating strategic decisions in banking, including M&A transactions, valuation of bank equity, and assessment of the impact of FinTech, BigTech, CBDCs, and ESG factors on the evolution of banking business models.

Expected Learning Outcomes

• Formulates the fundamental terms and definitions characterizing the field of modern banking, including the economic nature of financial intermediation, as well as the inevitability of bank transformation under the influence of financial globalization and digitalization.
• Distinguishes a bank from a non-bank financial institution, describes the key functions of banks in the economy, and explains the mechanisms of asset transformation — liquidity, maturity, currency, and risk transformation.
• Understands the structure of a bank's balance sheet, its revenue generation model, and the mechanism of calculating key performance indicators, including NIM, ROA, ROE, Cost-to-Income ratio.
• Identifies the factors driving bank credit expansion and credit risk formation, understands the mechanics of credit scoring and the calculation of expected and unexpected losses, and distinguishes between the incurred loss and expected credit loss provisioning models.
• Explains the objectives and mechanisms of securitization, distinguishes between its main types (MBS, ABS, CDO), and analyzes the factors that led to the transformation of securitization from a risk management tool into a source of systemic vulnerability.
• Describes the nature of liquidity risk and market risk in banking, understands the mechanics of bank runs through the Diamond–Dybvig framework, and calculates VaR using historical simulation and variance-covariance approaches.
• Understands the principles of internal transfer pricing (FTP) in banks, distinguishes between single-pool and matched-maturity approaches, and applies the RAROC methodology to assess the risk-adjusted profitability of lending decisions.
• Explains the architecture and evolution of the Basel regulatory framework, distinguishes between CET1, AT1, and Tier 2 capital, calculates capital adequacy ratios and liquidity standards (LCR, NSFR), and understands the rationale for macroprudential buffers.
• Analyzes the mechanisms of monetary policy transmission through the banking channel, distinguishes between the credit channel, the interest rate channel, and the risk-taking channel, and evaluates the implications of negative interest rates for bank profitability.
• Identifies the causes and typology of systemic banking crises, understands the role of macroprudential stress-testing, and explains the lender-of-last-resort function of central banks.
• Evaluates bank equity using DCF-based (FCFE) and market multiple approaches (P/BV, P/E), decomposes the P/BV ratio through the ROE–COE framework, and analyzes the sources of value creation and destruction in bank M&A transactions.
• Distinguishes between traditional banks, neobanks, and BigTech financial platforms, understands the implications of CBDCs for the deposit base and payment systems, and explains the role of ESG and climate-related risks in shaping contemporary banking strategies.

Course Contents

• The Economic Nature of Banks and Financial Intermediation
• Bank Balance Sheet Structure and Key Performance Metrics
• Banks and Banking Systems
• Credit Process, Credit Risk Management and Securitization
• Liquidity Risk and Market Risk in Banking
• Pricing of Banking Products and Internal Transfer Pricing
• Bank Regulation
• Macroeconomics of the Banking System and Monetary Transmission
• Banking Crises
• Bank Ecosystems, M&A, and Bank Valuation
• FinTech, BigTech, and ESG Transformation

Assessment Elements

• Seminars
• Test
• Case
• Colloquium

Interim Assessment

• 2026/2027 2nd module
  0.25 * Case + 0.25 * Seminars + 0.25 * Test + 0.25 * Colloquium

Bibliography

Recommended Core Bibliography

• The Oxford handbook of banking, , 2010

Recommended Additional Bibliography

• Money, banking, and financial markets, Cecchetti, S. G., 2017

Authors

• MUKHAMETOV OSKAR RUSTYAMOVICH