Banking and Financial Regulation

Crédit : 2 ECTS
Langue du cours : anglais

Volume horaire

  • CM : 15 h

This course aims to:
  • Explore the dimensions of investment banking business and understand risk factors underpinning banking and financial systems.
  • Analyse the rationale, principles, techniques and arrangements relating to financial sector regulation.
  • Provide a unified framework for assessing regulatory policy options in lights of the global developments in the banking industry.
On completing this course students should be able to:
  • Critically discuss theoretical arguments and analytical frameworks in banking risk management and regulation.
  • Critically evaluate main arguments for financial regulation, explain the main elements of different regulatory approaches and initiatives and assess regulatory frameworks.
  • Examine the implications of developments in the financial regulation to the investment banking business, and specifically to the investment banks strategies.
  • Analyse the forces driving changes in the investment banking and financial services sector; and apprehend the challenges and opportunities facing the industry.

The study of investment banking and financial regulation is concerned with analysing the characteristics of investment banking business, the underlying risks and the associated regulatory issues, challenges and initiatives. This course combines theoretical elements in financial intermediation and regulation with a study of the investment banking market structures and regulatory frameworks. This enables sound analysis of the industry-related issues and regulatory policy options. The course focuses first on the key concepts and theories in banking then brings along a discussion of the industry dynamic and its institutional features before moving on to issues relating to risks and regulation. The regulation component of the course aims to evaluate regulatory initiatives and processes through an assessment of policy orientation by building on theoretical issues and market experiences. Mainstream issues, including global financial crises, are starting blocks to closely examine micro/macro prudential regulation and crisis management. Further key aspects include tradeoffs and challenges that regulators face internationally to maintain sound and sustainable financial systems which are capable of delivering financial services efficiently and competitively. Course content: Week Session duration Session description References 1 st 3h (Lecture:1.5h; Seminar: 1.5h) The Investment Banking Firm: Theoretical Perspectives See reading list below 2 nd 3h (Lecture:1.5h; Seminar: 1.5h) Failure of banking system: Rational for financial regulation See reading list below 3 rd 3h (Lecture:1.5h; Seminar: 1.5h) Prudential regulatory frameworks See reading list below 4 th 3h (Lecture:1.5h; Seminar: 1.5h) Banking Capital Regulation See reading list below 5 th 3h (Lecture:1.5h; Seminar: 1.5h) Banking Liquidity Regulation See reading list below Last 1 to 2h Final exam: MCQ and Exercises Document non authorized

Investment banking and Financial Regulation are highly practical and dynamic subject areas. Therefore this course adopts an applied approach to teaching and learning. Students are given the opportunity to evaluate major developments in the field. It is structured based on a combination of lectures and supporting seminars. Lectures are the core component of the course. It aims to stimulate an exploratory approach to the study of topics through guided analysis and reflection. On the other hand, seminars will involve practical activities such as presentations, group discussions, case studies and set exercises. It will also provide a forum for addressing questions and issues raised by students. To reinforce knowledge after lectures and support independent learning, a list of reading will be recommended to students. It will cover general background literature and more specialist and topical material.
The course aims to apply a sound assessment process which is in line with the policies of the University of Paris Dauphine. This process comprises an in-class activity assessment (individual and group presentations and essays) as well as a final examination. The balance toward the final grade is 60%-40% respectively. Presentations and essays marking are based on the following criteria:
  • Focus: does the work stay within and fulfil the question and topic parameters?
  • Synthesis: does it bring together the literature in a significant manner that addresses the question raised?
  • Soundness of Knowledge and Understanding: does it indicate a comprehensive understanding of the topic area and literature discussed?
  • Structure, Presentation and Clarity: Is the work well organised and logically constructed to achieve synthesis while being mindful of the needs of the reader?Is it clearly written and referenced appropriately?

Berger et al (2012) The Oxford Handbook of Banking, Oxford University Press. Casu, B. Girardone, C, Molyneux. P. (2006) Introduction to Banking, FT Prentice Hall. Davies, H., Greene, D. (2008) Global Financial Regulation: The Essential Guide, Polity Press. Heffernan, S. (2005) Modern Banking, John Wiley. Mathews, K. and Thompson (2009) Economics of Banking, John Wiley.

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Année universitaire 2018 - 2019 - Fiche modifiée le : 19-04-2018 (10H46) - Sous réserve de modification.