Advanced Finance, Banking and Insurance

2019-2020

Course Objective

This course provides you with theoretical knowledge about the
functioning of financial markets and financial institutions. It enables
you to use economic and business concepts and models to understand and
analyse the impact of the external financial environment on a financial
or non-financial corporate, from the perspective of a financial manager.
As the financial sector is heavily regulated, you also learn to evaluate
the impact of the main policies for the financial sector, in a European
context.

After successfully completing this course you:

- are able to design an analysis of the impact of external financial
variables on a corporate, from the perspective of a financial manager
(Academic and Research Skills).
- are comfortable using your quantitative skills to answer specific
questions (Academic and Research Skills).
- are able to use economic and business concepts and models to
understand the impact of the external financial environment, from the
perspective of a financial manager (Bridging Theory and Practice).
- are able to effectively communicate your findings to the relevant
stakeholders, in written and presentational form (Professional / Social
Skills).
- have a broad understanding of the functioning of the financial system,
including different types of financial institutions, financial markets
and infrastructures, and understand current challenges related to
public policy (Broadening Your Horizon).

Course Content

The course contains a general introduction on the functions of the
financial system, and analyses European financial markets, institutions
and financial sector policies. Central themes are:

1. Setting the stage
- What are the functions of the financial system
- What is the impact of financial crises on the financial system?
- How does the monetary policy of the ECB work?
- To what extent are financial markets integrated in Europe?

2. Financial markets and institutions
- What is the theory that underpins the business of banking and
insurance?
- How are risk management models used in banks and insurers?
- What is the impact of financial innovation on credit markets and
payment systems?
- What is the role of institutional investors and asset managers,
including for example pension funds, investment funds, hedge funds and
private equity?

3. Policies for the financial sector
- Which policies have been instituted to foster financial stability at
the European level in the aftermath of the financial crisis?
- What is the role of financial supervision and competition policy?

Teaching Methods

Each of the six weeks of the course feature four hours of lectures,
which follow the textbook. The content of the tutorials varies. The
first two tutorials, in week 2, discuss the assignment. The tutorial in
week 4 reviews previous exams. The tutorials in week 5 and 6 contain
your presentations of the draft assignments, to get feedback from the
other groups and the lecturer.

Method of Assessment

To pass the course, you need a minimum grade of 5.50 both for the exam
and for the assignment (group assignment). The final grade is calculated
as 0.6 × (exam grade) + 0.4 × (assignment grade).

Literature

Haan, J. de, S. Oosterloo and D. Schoenmaker, Financial Markets and
Institutions: A European Perspective. 3rd edition, Cambridge University
Press, Cambridge, 2015.

In addition, specific literature suggestions are given in the first
lecture to help you prepare the assignment.

Recommended background knowledge

Recommended is prior knowledge in the field of finance, financial
markets and institutions, and the ability to perform quantitative
analysis for the assignment.

General Information

Course Code E_BA_AFBI
Credits 6 EC
Period P1
Course Level 400
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. P.J. Wierts
Examiner dr. P.J. Wierts
Teaching Staff dr. P.J. Wierts

Practical Information

You need to register for this course yourself

Teaching Methods Study Group, Lecture
Target audiences

This course is also available as: