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Course, academic year 2022/2023
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Introductory Banking - JEB153
Title: Introductory Banking
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2022
Semester: summer
E-Credits: 6
Examination process: summer s.:
Hours per week, examination: summer s.:2/2, Ex [HT]
Capacity: 185 / 185 (185)
Min. number of students: unlimited
Virtual mobility / capacity: yes / 185
Key competences: entrepreneurship
State of the course: taught
Language: English
Teaching methods: full-time
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: Mgr. Magda Pečená, Ph.D.
Teacher(s): Mgr. Barbara Livorová
Mgr. Magda Pečená, Ph.D.
Class: Courses for incoming students
Incompatibility : JEB126
Is incompatible with: JEB126
Annotation -
Last update: Mgr. Magda Pečená, Ph.D. (19.01.2023)
The course covers topics related to banking industry and key banking operations. It helps students understand the nature of banks' balance sheets (and other relevant financial statements), asset and liabilities management, and main risks related to banks' business model such as credit risk, interest rate risk in the banking book, market risk, operational risk and liquidity risk. It also covers the basics of bank capital and capital management and liquidity regulation (Basel I-III). The course also outlines banking management techniques and discusses basic measurement methods for quantifying the individual risks.

The lectures and tutorials start on Thursday February 16, 2023. Each lecture (every Thursday, 11:00 a.m.) is followed by a tutorial (every Thursday, 12:30 a.m.) that provides students with examples and exercises related to the topic of the lecture.

During the semester the students are also provided with 3 short articles ("readings") focused on various aspects of banking / trends in banking, these readings complement the lectures. The lectures will be complemented by app. 3 guest lectures provided by experts from banking and fintech industry.
The students are encouraged to discuss the topics and share their experience and knowledge.

Summer semester 2023 is to be conducted in the lecture room and parallelly transmitted online for students of vitual mobility.

All information (incl. presentations, readings, tutorial materials etc.) and links to on-line sessions please find in Moodle: https://dl1.cuni.cz/course/view.php?id=13816
The course is taught in English, all materials and exams are in English only.





Literature -
Last update: Mgr. Magda Pečená, Ph.D. (04.01.2023)

Obligatory textbooks (selected chapters)
1) Mejstřík, M., Pečená, M., Teplý, P. (2014). Banking in theory and practice. Prague: Karolinum Press
2) Mishkin, F S. (2010). The Economics of Money, Banking & Financial markets. Boston: Addison-Wesley

3 Readings assigned during the semester

Requirements to the exam -
Last update: Mgr. Magda Pečená, Ph.D. (19.01.2023)

The final grade will consist of two parts. In total you can get 100 points.

1) Online Midterm test (max 40 pts)

2) Online Final test (max 60 pts)

Student can also get active (class and online) participation points ("bonus points" max 5 pts) - can only be used to substitute missing points from the previous two requirements so that the total points are always max 100. 

The midterm test is written only once during the semester (usually during one of the tutorials). There are more terms for the final test.

Grading:

Points   Grade
91 – 100 pts Excellent+  A
81 –  90 pts Excellent-  B
71 –  80 pts Very good+ C
61 –  70 pts Very good D
51 –  60 pts Satisfactory E
  0 –  50 pts Failed F
Syllabus -
Last update: Mgr. Magda Pečená, Ph.D. (04.01.2023)

All course documents and links to on-line sessions will be available in Moodle - please self-enroll yourself: https://dl1.cuni.cz/course/view.php?id=13816

Preliminary flow of topics during the semester

1. Introduction and Basic Principles of Banking, overview of the banking industry, in the Czech Republic and worldwide

2. Basics (and recapitulation) of financial mathematics relevant for the course (NPV calculation, annuity calculation, valuation of financial instruments)

3. Financial statement analysis - interaction of bank´s financial statements and corporate financial statements

4. Basic banking operations, bank performance evaluation

5. Asset Liabilities Management and Basics of Risk Management

6. Credit Risk : Measurement and management, IFRS 9 provisioning

7. Market Risk : Measurement and management: Interest rate risk, Interest rate risk in the banking book, FX risk, equity risk, risk management techniques (GAP analysis, duration, VaR) 

8. Operational Risk

9. Capital Regulation of Banks, capital management

10. Liquidity Risk: Measurement and management, Liquidity Regulation (Basel III, LCR, NSFR)

11. Central Banking and Interbank Market Operations

12. FinTech and current trends in banking 

Also a guest lecture may be included during the semester.

Entry requirements
Last update: Mgr. Magda Pečená, Ph.D. (04.01.2023)

There are no specific prerequisites for the course. However, knowledge of basic mathematical operations (e.g. discounting, NPV calculation) and principal understanding of basic financial statements (balace sheet, P/L, cashflow statement) are welcome.

Registration requirements
Last update: Mgr. Magda Pečená, Ph.D. (04.01.2023)

No specific, the student must meet all official requirements (enrole in SIS) and enrole in Moodle: https://dl1.cuni.cz/course/view.php?id=13816

 
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