Banking
Instructor: Драгана Башић, PhD, Full Professor
The goal of studying this subject is to provide students with a basic theoretical education from the field of banking and basic banking operations, ability of detecting and reasoning relationships, trends and changes in financial markets and in the banking sector, and to indicate the importance and role of banking institutions in the financial system and the basics, importance and effects of regulation and supervision in the banking industry.
| Code : | О17ФБАН |
|---|---|
| Status: | C |
| Semestar: | 7th |
| Number of classes per week: | 4+3 |
| ЕECTS: | 7 |
| Teachers: |
Драгана Башић,
PhD Full Professor Срђан Кондић, PhD Senior Assistant |
| Prerequisites: | |
| Learning Outcomes (gained knowledge): | The student is able to successfully perform tasks in the field of banking profession and efficiently manage the bank by applying modern methods of management, general regulatory frameworks and control mechanisms. The student gets a clear theoretical basis necessary for the performance of tasks in the field of banking operations and further development of the banking profession. |
| Subject Contents: | Financial intermediation (development, forms, financial instruments, types); The types of financial intermediaries and the characteristics of the portfolio; A measure of financial development; Financial disintermediation; Determinants of traditional and modern banking; Contemporary trends and prospects in the banking industry; Banking system models; Classification and functions of banks in the financial system; Flows of money creation and withdrawal, and loans from banks; Primary money; Money (monetary) supply; Money and credit multiplication; The basic principles of banking operations (indicators and impact factors); The organizational structure of banks; The term, forms and functions of bank capital; Capital adequacy; The increase in banks' capital (internal and external sources of capital raising) with special reference to the role of subordinated bonds; The financial statements of banks; Measuring and evaluating the quality and success of banking operations; Types of risks and risk management in the banking industry; The term, models and functions of central banks; The concept of Monetary (Currency) Board; The European Central Bank; Central Bank of Bosnia and Herzegovina; The instruments of monetary regulation; Deposit and non-deposit potential of banks (types, pricing of deposits); Credit potential of a bank (concept, types, determining the creditworthiness of the borrower, loan structuring, insurance and self-insurance of loans, the formation of interest rates); Measurement and expression of the quality of the loan portfolio of banks; The process, characteristics and effects of the securitization of loans; Credit derivatives and support activities; Treasury and depot operations of banks; Issuance of guarantees and other off-balance sheet activities of banks; Personal banking; Functional areas of investment banking; Strategic management of the bank (strategic approaches with particular emphasis on the ALM concept); Control and audit of the banking operations; Basics of prudential regulation and supervision of banks (Basel Accord); Ranking of banks; The effects of regulation in the banking industry; The emergence of banking crises and solving models; Deposit insurance; Methods of restructuring of banks; The concentration in the banking industry (aspects, motifs, forms and model evaluation); Determinants of mergers and acquisitions of banks; The effects of the application of information technology in banking. |
| Teaching Methods and Learning Activities: | Lectures, exercises, seminar classes, discussions, analysis of case studies and consultations. |
| Literature: | Bašić, D. (2012). Modern Banking. Banja Luka: University of Banja Luka, Faculty of Economics; Plakalović, N. (2004). Monetary Economics: Theory, institutions and policies, Srpsko Sarajevo: Institute for Textbook Publishing; Rose, S. P; Hudgins, C. S. (2005). Bank Management and Financial Services. Belgrade: Data Status. |
| Types of Assessment for the subject: | Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points) |
| Special Remarks for the subject: |