30178 - INTERNATIONAL BANKING

Basic knowledge of the financial system is useful. Bocconi students should have taken the course Financial Markets and Institutions. However, there are many different backgrounds in class. Thus, we will first do some “basic concepts” of the financial system and will then continue with some more advanced topics.

The course focuses on the role of banks and other financial institutions. The course will discuss (1) the main types of financial institutions and the risks they face; (2) banks’ liquidity management and systemic risk; (3) securitization; (4) interest rate risk; (5) current developments in the international banking system; (6) the regulatory framework, with particular emphasis on capital requirements and the resolution framework; (7) climate risk. Particular attention will be devoted to the European banking industry throughout the course. 

1. Commercial and investment banks: activities and challenges
2. Financial risks
3. Liquidity and systemic risk
4. Securitization: motivation, effects, and recent trends
5. Interest rate risk and the case of Silicon Valley Bank
6. Current issues in international banking 
7. Capital, liquidity, and macro-prudential regulation
8. Banking union and resolution
9. Climate risk

The main objective of the course is to provide students with an in-depth analysis of the functioning of the banking industry, the risks and challenges it faces and the regulatory framework. 

Analyze the risks affecting financial institutions, evaluate their solvency state, develop the implications of financial regulation for bank business and design crisis management tools. 

• Face-to-face lectures
• Guest speaker's talks (in class or in distance)
• Exercises (exercises, database, software etc.)
• Case studies /Incidents (traditional, online)

• Exercises, where the concepts learnt in the lectures are applied to solve concrete problems 

Attending students will have the possibility to choose between:

- a general exam on all topics covered in the course

OR

- two partial exams: the first one will assess the knowledge of topics covered in the first half of the course, whereas the second one will include only topics covered in the second half of the course

Details on the exam structure (number and tipe of questions, allotted  time etc.) and the attendance rule will be illustrated at the beginning of the course and posted in B-Board

Non attending students will take a general exam on all topics covered in the course.

Details on the exam structure (number and tipe of questions, allotted  time etc.) and the attendance rule will be illustrated at the beginning of the course and posted in B-Board

A reading list with precise references will be distributed at the beginning of the course. The relevant book chapters will be available through an e-book edition of the book.

Slides and other relevant material prepared by the instructors will be posted in Blackboard.