The course is focused on the latest development in financial market regulation. Significant changes have occurred in the particular segments of the financial markets, as a response to the latest Global financial Crises 2007-2009. These changes have substantially affected financial market regulation. And there are still running works on their full implementation.The course will also touch upon the role of the central banks which over the past decade and a half have done things they never did before. Rushed by the emergencies of the Global financial Crises and the Covid 19 pandemic, the major central banks pursued extremely accommodative policies.
The course will aim not only on mentioned changes and central bank policies but also on the core understanding of the functioning of the financial markets, financial institutions and their instruments.
Last update: Marešová Svatava, Ing. (18.01.2023)
Significant changes have occurred in the particular segments of the financial markets, (especially in banking and insurance) as a response to the latest global financial crisis. These changes have substantially affected the banking and insurance operating and regulation. The lecture will aim not only on these changes but on the core understanding of the functioning of the financial markets, financial institutions and their instruments as well.
Last update: Chromá Marta, doc. PhDr., Ph.D. (23.10.2019)
Requirements to the exam
Exam:
The subject of the exam are the topics presented in the course using PowerPoint presentations. The written exam consists of the test containing 5 closed questions and 5 open questions. For the closed questions, four answers are offered, which the student marks as true or false. The time limit for the written exam is 60 minutes.
Literature: 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, Praha, Karolinum, 2014. 3. Overtveldt, J.: The Mystic Hand: How Central Banks Shaped the 21st Century Global Economy, Agate Publishing, 2022. 4. Douady, R., , Goulet, C., Pradier, Pierre-Charles: Financial Regulation in the EU: From Resilience to Growth, Palgrave Macmillan, 2017
Means of communication: MS Teams
Last update: Marešová Svatava, Ing. (18.01.2023)
Syllabus
Syllabus:
Lecture 1: Principles of the functioning of the financial markets, key terms, reasoning of the financial markets regulation
Lecture 2: Structure of the financial market – particular sectors of the financial market, drivers of the financial sector development, types of transactions on the financial market.
Lecture 3: The basic rules for the financial institutions operation – regulation of the entry into the sector, liquidity rules, capital adequacy rules.
Lecture 4: Role of the central banks, role of the lender of last resort – possible ways of the financial institutions rescue.
Lecture 5: Central bank policies.
Lecture 6: Financial market in the UK - history, role of the Bank of England, changes after the Northern Rock fall, etc. Financial market in the USA - history, changes set by Dodd-Frank Act, comparison with the Czech Republic.
Lecture 7: Investment banking, investment funds – characteristics of the investment banking and the issue of its separation from the commercial banking, types of the investment funds.
Lecture 8: Banking union - fundamental pillars, position of the Czech Republic and other member states, explanation of the barriers to the fully-fledged Banking union.
Lecture 9: Financial crisis – typology of the financial crisis, analyses of the most important financial crisis in the 20th century. The global financial crisis 2007–2009 – causes, subsequent regulatory changes.
Lecture 10: Topical European issues in the regulation and supervision of the financial market.
Course Goals:
The goal of this course is to acquaint students with the basic principles of the functioning of the financial market and its regulation.
Mandatory literature:
Schooner, H. M., Taylor, M.: Global Bank Regulation: Principles and Policies, Burlington, MA, Academic Press, 2010
Mejstrik, M., Pecena, M., Teply, P.: Banking in theory and practice, Praha, Karolinum, 2014
Optional literature:
Douady, R., , Goulet, C., Pradier, Pierre-Charles: Financial Regulation in the EU: From Resilience to Growth, Palgrave Macmillan, 2017
Kedar-Levy, H.: A Critical History of Financial Crises, Imperial College Press, 2016
Caprio, G.: Handbook of Key Global Financial Markets, Institutions, and Infrastructure, Academic Press, 2012
