Plan de cours

Programme Responsable MSc in Finance 14‐15 RN MSF Enseignement Bank Organization and Regulation FI53050E‐1‐RN Département académique : Finance Responsable : Nathalie Janson Chargés de cours : Nathalie Janson Langue d'enseignement : Anglais Crédits ECTS : 4 Nombre d'heure de cours : 30 Charge de travail globale : 90 Positionnement dans l'architecture programme (Bloc) : Assurance of learning : Référentiel de compétence : Connaissances requises Présentation du cours et finalités générales This course aims at providing an understanding of the recent financial and banking crises and of theirconsequences on the future
design of banking regulation and supervision. This is a very complex topic since banking and financial system greatly influences
the state of the economy – as the slow economic recovery rate of the major industrial countries proves - and companies’ financing
strategy. Financial intermediation underwent through major changes over the past 30 years because of financial deregulation and
globalization. Financial intermediaries were nationally-based and heavily protected by their government indirectly (anglo-saxon
style) or directly (many Europeans banks were still state-owned until recently). Despite deregulation and disintermediation
financial institutions still represent a fair share of the economic activity, their traditional business having shifted over the years
from loans provider to financial services providers that might have been at the root of the current crisis. Since a developed
banking and financial system is a condition for economic growth in a market-based economy, its potential disruption justifies
government intervention even in the US. As the matter of fact, the banking system is essential for cash management and for
financing small and medium sizes companies. The course will first focus on the US banking and financial system since the
“subprimes” crisis started there with the disruption of the money market. It will explain the basics of banking management and the
major characteristics of the US banking system partly shared by the European banking systems. Then it will detail the mechanisms
underlying the growth of the subprime market, in particular the role played by the securitization process. Then the course will
focus on the banking regulation and supervision, in particular the capital regulation. A special attention will be dedicated to the
Basel Accord. The design of Basel III has been recently unveiled and we will discuss the merits of the changes recently introduced
in the light of the crisis. We will also discuss the merits of the government and monetary authorities’ intervention and its potential
negative consequences in terms of moral hazard. The course begins with a brief overview of the financial system and a
presentation of the nature banking activities. Explaining the basics will help students understanding the complexity of the
contemporary banking and financial system and prepre them to grasp the challenge faced by regulators.
28/10/2014 Page 1/2 Objectifs d'apprentissage ̲By the end of the course the student should have a clear understanding of:
1- The organization of the financial and banking system in developed economies like US and Euro. They should
have a clear view of the changes that have affected the bank’s traditional business in the last 30 years.
2- The banks’ management and banking risk management
3- The mortgage market, subprime market and the securitization process
4- The role played by the major banking and monetary authorities and their intervention during the crisis.
5- Bank capital regulation: the Basel II and Basel III accord
6- Government implicit/explicit protection of banking and financial institutions and regulations’ efficiency
Keywords : Asymmetry of Information – Fractional Reserve – Maturity Transformation – Intermediation Duration – Asset and Liability Management ­ Securitization – Loan pricing –Basel Capital Requirements – Liquidity ratios – Government Safety Net Méthodes pédagogiques Heures 30,00 30,00 Organisation du cours Présentiel Asynchnrone Heures Heures 0,00 30,00 0,00 30,00 30,00 Sédentarité 0,00 30,00 30,00 30,00 Généralisé Classe inversée 0,00 30,00 0,00 Mode d'apprentissage Groupe Disciplinaire Déductif Heures 0,00 0,00 Magistral 0,00 0,00 Évaluation Type Organisé par Centre des % de la note % de la note Intitulé Durée finale individuel Examens Teamwork Teamwork Individual Exam YES 28/10/2014 NO Exercises 30% 30% (around) NO Oral Presentation 20 minutes 30% 30% (around) Final Exam 2 hours 40% 100% Page 1/2 Structure du cours Type Duration 1 09/10/14 Lecture 3h The Structure of the US
banking System
2 16/10/14 Lecture 3h 3 23/10/14 Lecture 3h 4 06/11/14 5 13/11/14 6 27/11/14 Lecture Lecture 3h Chapters 9 + 10 from M
The Major Changes at Work in
the Banking System
Chapters 9 + 10 from M
Banking management :
Chapters 7 + 9 from GT
Managing off-balance
sheet :Securitization
Team Presentation
Managing off-balance
sheet :Securitization (cont’d)
Chapters 7 + 9 from GT
Team Presentation
Exercises
Banking management : major
risks faced by banks
Chapter 4 from GT
Banking management
Chapter 4 from GT
Major risks faced by banks
(cont’d)
Lecture 3h Lecture 3h 8 11/12/14 Lecture 3h 10 19/12/14 Assignments Chapters 1+2+3 from M
The Major Changes at Work in
the Banking System
3h 7 04/12/14 9 15/12/14 Topics A brief overview of the financial
system
Banking management
Exercises
Banking management :
Chapters 5 + 6 from GT
Managing loans
Exercises
Banking Regulation
Chapter 10 from GT
Team presentation
Banking Regulation
Lecture 3h Basel Accord
3h Chapter 11 from M + additional
readings
Team presentation
Banking Regulation
Lecture Chapters 5 + 6 from GT
Banking management :
Managing loans
Team Presentation
Basel III
28/10/2014 Page 1/2 Références & Bibliographie Author Year of publication Mishkin, F.S 2013 Grembaum and Thakor 2007 Divers Title of the book or of the article Economics of Money, Banking and Financial Markets Contemporary Financial Intermediation Publishing company or review Pearson Education, 10th edition Reference Elsevier , 2nde edition URL www.federalreserve.gov www.ecb.int www.bis.org 28/10/2014 Page 1/2