This course, taught in English, focuses on the regulation of financial markets, as well as on understanding the functioning of financial markets in market economies, financial institutions, and their instruments. The course also concentrates on risk management and methods for measuring and managing risks, which have been revised in the wake of the financial crisis. Emphasis is also placed on understanding the functioning of individual financial instruments and their valuation. The course will analyze changes in financial market regulation resulting from the global financial crisis.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
This course, taught in English, focuses on the regulation of financial markets, as well as on understanding the functioning of financial markets in market economies, financial institutions, and their instruments. The course also concentrates on risk management and methods for measuring and managing risks, which have been revised in the wake of the financial crisis. Emphasis is also placed on understanding the functioning of individual financial instruments and their valuation. The course will analyze changes in financial market regulation resulting from the global financial crisis.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Kontroly studia předmětu a podmínky pro jejich úspěšné vykonání, způsob hodnocení -
1.The exam is written and consists of five questions, for which a maximum of 10 points can be earned.
2.To pass the course, a student must earn 6 points.
3.The questions cover topics taught during the summer semester and knowledge of the required reading (see above).
4.The time limit for the test is 60 minutes.
5. No legal statutes or other sources may be used during the exam.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
1.The exam is written and consists of five questions, for which a maximum of 10 points can be earned.
2.To pass the course, a student must earn 6 points.
3.The questions cover topics taught during the summer semester and knowledge of the required reading (see above).
4.The time limit for the test is 60 minutes.
5. No legal statutes or other sources may be used during the exam.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Sylabus -
The course covers the following topics:
- Theoretical Foundations and Approaches to Financial Market Regulation—reasons for regulation based on a typology of market failures, models of institutional arrangements for regulation and supervision
- Financial Market Structure – individual sectors of the financial market, driving forces behind financial market development, types of transactions conducted in the financial market
- Methods and Procedures Applied in the Regulation and Supervision of Individual Financial Market Sectors – Regulation of Market Entry, Basic Rules Governing the Activities of Individual Financial Institutions, and Enforcement of Compliance
- Risks Undertaken by Financial Institutions and Their Management – Types of Risks, Risk Diversification, and the Role of Risk Management
- Capital adequacy rules—the evolution from Basel I to Basel III, methods for calculating capital requirements for individual types of risk
- Financial Market Regulation and Supervision in the United Kingdom – historical development, the FSMA and the Financial Services Act 2010, comparison with the Czech Republic
- Financial Market Regulation and Supervision in the United States – historical development, current regulations and changes resulting from the Dodd-Frank Act, comparison with the Czech Republic
- Financial Conglomerates – Types of Conglomerates, Regulation in Europe and the United States
- Investment Banking, Hedge Funds, Private Equity Funds – Characteristics of Investment Banking and the Issue of Separation from Commercial Banking; Characteristics of Hedge Funds and Private Equity Funds and Their Regulation
- Derivatives Market – Focus on individual categories of derivatives (forwards, futures, options, swaps) and derivatives trading, valuation of derivatives
- Regulation and Supervision of Financial Derivatives – regulation in the United States and the European Union; accounting rules for derivatives: hedge accounting under IAS 39
- Financial crises – typology of financial crises, analysis of the most significant financial crises of the 20th century and the global financial crisis
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
The course covers the following topics:
- Theoretical Foundations and Approaches to Financial Market Regulation—reasons for regulation based on a typology of market failures, models of institutional arrangements for regulation and supervision
- Financial Market Structure – individual sectors of the financial market, driving forces behind financial market development, types of transactions conducted in the financial market
- Methods and Procedures Applied in the Regulation and Supervision of Individual Financial Market Sectors – Regulation of Market Entry, Basic Rules Governing the Activities of Individual Financial Institutions, and Enforcement of Compliance
- Risks Undertaken by Financial Institutions and Their Management – Types of Risks, Risk Diversification, and the Role of Risk Management
- Capital adequacy rules—the evolution from Basel I to Basel III, methods for calculating capital requirements for individual types of risk
- Financial Market Regulation and Supervision in the United Kingdom – historical development, the FSMA and the Financial Services Act 2010, comparison with the Czech Republic
- Financial Market Regulation and Supervision in the United States – historical development, current regulations and changes resulting from the Dodd-Frank Act, comparison with the Czech Republic
- Financial Conglomerates – Types of Conglomerates, Regulation in Europe and the United States
- Investment Banking, Hedge Funds, Private Equity Funds – Characteristics of Investment Banking and the Issue of Separation from Commercial Banking; Characteristics of Hedge Funds and Private Equity Funds and Their Regulation
- Derivatives Market – Focus on individual categories of derivatives (forwards, futures, options, swaps) and derivatives trading, valuation of derivatives
- Regulation and Supervision of Financial Derivatives – regulation in the United States and the European Union; accounting rules for derivatives: hedge accounting under IAS 39
- Financial crises – typology of financial crises, analysis of the most significant financial crises of the 20th century and the global financial crisis
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Studijní opory -
Core Reading:
1.Schooner, H. M., Taylor, M.: Global Bank Regulation: Principles and Policies, Burlington, MA, Academic Press, 2010
2.Mejstrik, M., Pecena, M., Teply, P.: Banking in Theory and Practice, Prague, Karolinum, 2014
Additional Reading:
1.Douady, R., Goulet, C., Pradier, Pierre-Charles: Financial Regulation in the EU: From Resilience to Growth, Palgrave Macmillan, 2017
2.Kedar-Levy, H.: A Critical History of Financial Crises, Imperial College Press, 2016
3.Caprio, G.: Handbook of Key Global Financial Markets, Institutions, and Infrastructure, Academic Press, 2012
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Core Reading:
1.Schooner, H. M., Taylor, M.: Global Bank Regulation: Principles and Policies, Burlington, MA, Academic Press, 2010
2.Mejstrik, M., Pecena, M., Teply, P.: Banking in Theory and Practice, Prague, Karolinum, 2014
Additional Reading:
1.Douady, R., Goulet, C., Pradier, Pierre-Charles: Financial Regulation in the EU: From Resilience to Growth, Palgrave Macmillan, 2017
2.Kedar-Levy, H.: A Critical History of Financial Crises, Imperial College Press, 2016
3.Caprio, G.: Handbook of Key Global Financial Markets, Institutions, and Infrastructure, Academic Press, 2012
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Výsledky učení -
Knowledge:
●Students will be able to characterize the economic principles they have already learned in the course Law and Economics I and identify them in the context of financial regulation. They will be able to describe how markets function, apply the concept of market failure to the financial sector, and explain regulatory principles in the financial sphere and models of regulatory frameworks.
●Students will be able to understand banks’ risk models, particularly in relation to the calculation of capital adequacy.
●Students will be able to understand the international global financial system and the principles of its regulation.
●Students will understand the various types of risks faced by financial institutions and how these have shaped regulatory approaches
●Students will understand the causes of financial crises in different periods and how they have influenced and continue to influence regulatory approaches.
●Students will be able to understand current issues in the financial services sector and its regulation.
Skills:
●Students will understand and interpret the basic regulatory strategies and tools used in global financial supervision.
●Students interpret the political and economic reasons that shape financial regulation, including market efficiency, systemic stability, and consumer protection.
●Students analyze international standards and compare approaches in the Czech Republic, the United Kingdom, the EU, and the U.S.
●Students assess emerging risks in financial markets and are able to interpret how regulatory frameworks are evolving in response to them.
●Students will critically assess the robustness of financial regulation and the new ways in which it has been applied to address emerging challenges.
●Students will engage in expert debates on financial stability, supervision, crisis response, and regulatory reforms.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
Knowledge:
●Students will be able to characterize the economic principles they have already learned in the course Law and Economics I and identify them in the context of financial regulation. They will be able to describe how markets function, apply the concept of market failure to the financial sector, and explain regulatory principles in the financial sphere and models of regulatory frameworks.
●Students will be able to understand banks’ risk models, particularly in relation to the calculation of capital adequacy.
●Students will be able to understand the international global financial system and the principles of its regulation.
●Students will understand the various types of risks faced by financial institutions and how these have shaped regulatory approaches
●Students will understand the causes of financial crises in different periods and how they have influenced and continue to influence regulatory approaches.
●Students will be able to understand current issues in the financial services sector and its regulation.
Skills:
●Students will understand and interpret the basic regulatory strategies and tools used in global financial supervision.
●Students interpret the political and economic reasons that shape financial regulation, including market efficiency, systemic stability, and consumer protection.
●Students analyze international standards and compare approaches in the Czech Republic, the United Kingdom, the EU, and the U.S.
●Students assess emerging risks in financial markets and are able to interpret how regulatory frameworks are evolving in response to them.
●Students will critically assess the robustness of financial regulation and the new ways in which it has been applied to address emerging challenges.
●Students will engage in expert debates on financial stability, supervision, crisis response, and regulatory reforms.
Poslední úprava: Šicnerová Barbora, Mgr. (16.09.2026)
