5155 - INTERNATIONAL BANKING

This course has three main objectives:

• analyze the institutional and economic settings of international financial markets where major banks operate;
• examine the management problems faced by banks operating in international financial markets;
• analyze the technical features of the financial instruments negotiated in international financial markets and the characteristics of the markets in which these instruments are issued.

The course includes four main sections:

• the historical evolution of the international monetary system and its implications for international financial markets;
• the main segments of international financial markets: the foreign exchange market, euromarkets, syndicated loans, eurobonds and international bond and equity markets;
• the management policies of international banks: risk management, securitization processes, capital management, funding policies;
• the main problems posed by international financial activities for the regulation of banking.

You can choose between the following three options:

• Option one: to sit two written exams, one midway through the course (i.e. 1st partial exam), the other at the end of the course (i.e. 2nd partial exam). Each written exam consists of two open theory-related questions and one exercise, with 90 minutes time available for the exam. Students are not allowed to consult books and/or notes during the exam. The final mark will be based on a simple arithmetic average of the two marks. A minimum of 16 in each of the two exams is needed to get to the final mark. The average will be rounded to the next integer (for example 21.5 will become 22).
• Option two: to sit only one written exam, based on the material covered during the whole course. The exam consists of three open theory-related questions and one exercise. Students have 120 minutes available for the exam.
• Option three: if students have not taken one of the first two options, on an official exam date, students first sit a short written exam, with only one exercise (30 minutes) and no theory. Right after, students take an oral exam on the whole material covered in class. Students need to get a minimum mark of 18 to be able to take the oral exam. Once you decide take oral exam, you cannot withdraw anymore: you will have to live with whatever grade you receive.

• R. LEVICH, International Financial Markets, McGraw-Hill, 2001.