Delivered at:: Bachelor's Programme in Digital Product Management

Course type:: Elective course

When:: 2 year, 3, 4 module

Instructor

Кестнер Ирина Владимировна

Full 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

Be able to understand the concept of efficient markets including different forms of market efficiency and explanatory theories
Discuss the main types of risks faced by banks, and use the main techniques employed by banks to manage their risks.
Learn the concept of CAPM & APT
Understand why financial intermediaries exist and discuss the role of transaction costs and information asymmetry theories in providing an economic justification

Course Contents

Introduction
Financial markets and instruments
Capital Budgeting and Valuation
Valuation of Fixed-Income Securities
Stock valuation
Role of financial intermediation
Risk management and internal control in banks

Assessment Elements

Home assignment
Classwork
Spring written control papers
Examination format: The exam is taken written. The platform: The exam is taken on Ms Teams platform. Students are required to join a session 15 minutes before the beginning. The computers must meet the following technical requirements: https://docs.microsoft.com/ru-ru/microsoftteams/hardware-requirements-for-the-teams-app A student is supposed to follow the requirements below: Check your computer for compliance with technical requirements no later than 5 days before the exam; Sign in with your corporate account (@edu.hse.ru); Check your microphone, speakers or headphones, webcam, Internet connection (we recommend connecting your computer to the network with a cable, if possible); Prepare the necessary writing equipment, such as pens, pencils, pieces of paper, and others. Disable applications on the computer's task other than the MS Teams application or the browser that will be used to log in to the MS Teams platform. Students are not allowed to: Turn off the video camera; Use notes, textbooks, and other educational materials; Leave the place where the exam task is taken (go beyond the camera's viewing angle); Look away from your computer screen or desktop; Use smart gadgets (smartphone, tablet, etc.) Involve outsiders for help during the exam, talk to outsiders during the examination tasks; Read tasks out loud; Interact with other students. Students are allowed to: Write on a piece of paper, use a pen for making notes and calculations; Use a calculator; Turn on the microphone to answer the teacher’s questions; Ask a teacher for additional information related to understanding the exam task. Connection failures: A short-term communication failure during the exam is considered to be the loss of a student's network connection with the MS Teams platform for no longer than 1 minute. A long-term communication failure during the exam is considered to be the loss of a student's network connection with the MS Teams platform for longer than 1 minute. A student cannot continue to participate in the exam, if there is a long-term communication failure appeared. The retake procedure is similar to the exam procedure. In case of long-term communication failure in the MS Teams platform during the examination task, the student must notify the teacher, record the fact of loss of connection with the platform (screenshot, a response from the Internet provider). Then contact the manager of a program with an explanatory note about the incident to decide on retaking the exam.
Final written examination
Examination format: The exam is taken written. The platform: The exam is taken on Ms Teams platform. Students are required to join a session 15 minutes before the beginning. The computers must meet the following technical requirements: https://docs.microsoft.com/ru-ru/microsoftteams/hardware-requirements-for-the-teams-app A student is supposed to follow the requirements below: Check your computer for compliance with technical requirements no later than 5 days before the exam; Sign in with your corporate account (@edu.hse.ru); Check your microphone, speakers or headphones, webcam, Internet connection (we recommend connecting your computer to the network with a cable, if possible); Prepare the necessary writing equipment, such as pens, pencils, pieces of paper, and others. Disable applications on the computer's task other than the MS Teams application or the browser that will be used to log in to the MS Teams platform. Students are not allowed to: Turn off the video camera; Use notes, textbooks, and other educational materials; Leave the place where the exam task is taken (go beyond the camera's viewing angle); Look away from your computer screen or desktop; Use smart gadgets (smartphone, tablet, etc.) Involve outsiders for help during the exam, talk to outsiders during the examination tasks; Read tasks out loud; Interact with other students. Students are allowed to: Write on a piece of paper, use a pen for making notes and calculations; Use a calculator; Turn on the microphone to answer the teacher’s questions; Ask a teacher for additional information related to understanding the exam task. Connection failures: A short-term communication failure during the exam is considered to be the loss of a student's network connection with the MS Teams platform for no longer than 1 minute. A long-term communication failure during the exam is considered to be the loss of a student's network connection with the MS Teams platform for longer than 1 minute. A student cannot continue to participate in the exam, if there is a long-term communication failure appeared. The retake procedure is similar to the exam procedure. In case of long-term communication failure in the MS Teams platform during the examination task, the student must notify the teacher, record the fact of loss of connection with the platform (screenshot, a response from the Internet provider). Then contact the manager of a program with an explanatory note about the incident to decide on retaking the exam.

Interim Assessment

2021/2022 4th module
0.2 * Classwork + 0.2 * Spring written control papers + 0.4 * Final written examination + 0.2 * Home assignment

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

Bachelor’s Programme 'Digital Product Management'

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Principles of banking and finance