MINISTRY OF EDUCATION AND SCIENCE OF REPUBLIC OF KAZAKHSTAN
NEI «ALMATY MANAGEMENT UNIVERSITY»
DEPARTMENT OF FINANCE
Approved at the meeting of the
Educational and
Methodic Council
Chairman
______________N.Duisengulova
«_28_»___08_______ 2014_.
Academic program: Bachelor program
Specialty: 05B05900 – “Finance”
SYLLABUS on the course: "World banking system"
Course: 4
Term: 7
Number of credits: 2
Lecturer Ph.D., associate prof. Massakova S.S.
Almaty, 2014
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Compiled by: ______________ Ph.D., Associate Professor, S. Massakova
The working program has been developed for students of the specialty 5B050900- "Finance"
The working curriculum was reviewed at the meeting of the Department of “Finance”
Protocol № 1 from “27” _ 08__ 2014.
Head of the department__________________ d.e.s.,professor _____________________ _ P. Issakhova _
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Introduction
The course focuses on the theory, practice of banking, and its prospects in the new millennium. As well as microeconomic issues related to banks, covering key areas such as what singles a bank out from other financial institutions, the diversification of banks into non-banking financial activities, different types of banks within a banking structure, bank failures, and so on.
The discipline "The banking systems of the world" provides students with main concepts and the practice of banking. The discipline examines the economic, legal, institutional, and other aspects of the banking, and will give detailed description for main approaches and methods.
The aim of the course is to develop a clear understanding of the world banking industry approaches and techniques. Particular emphasis is placed on the role of intermediary, liquidity, failure and other.
Objectives of discipline:
- To describe the main approaches of banking;
- To give an idea and develop understanding of world banking systems;
- Compare local and international banking methods and approaches;
- Understand reasons for failure of financial institutions;
This discipline considers and examines the basic concepts, principles, methodology and development of world banking system.
Methods of teaching this discipline provides:
- Lecturing;
- Practical classes conduction;
- IWST;
- IWS.
Prerequisites: Economics, finance, financial management
Postrequisites: Diploma thesis
Upon completion of this discipline students must: master the following competencies according to the competence model of the bachelor
General competencies: know: the theoretical foundations of modern world banking system; be able to: creatively use theoretical knowledge in world banking system and independently apply them in practical sphere; master the skills: to apply the methods of international banking in practice
Specialized subject: know: methods and techniques of international banking be able to: identify the most important distinguishing features of a particular banking operations and its domestic and foreign situation, choose options methods and techniques depending on the specific situation master the skills: understand the reasons and consequences of the world banking system development
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CALENDER AND THEMATIC PLAN
№
Themes
1 2
1 Institutional structure and the main characteristics of the international credit and financial system and the banking system.
2 International and Local Banking Activities
Midterm 1
3 International and Local Risk Management
Systems and Methodologies
Distribution on weeks
Lecture Practice IWS IWST
3 4 5
5
6
1-5
1-5 1-5
6,7
8,9
6,7
8,9
7
9
6,7
8,9
4 Banking Regulations of the World
International and Local Bank Structure and
5
Regulations
6 Banking in Emerging Economies
7 Failures in International and Local
8
9
BankingSector
World Financial Crises
Competition in Banking
10
11
12
13
14
15
10
11
12
13
14
15
Midterm 2
Exam
Content of practical classes, form of control and grading
10
11
12
13
14
15
10
11
12
13
14
15
Theme №
1
1
2
Questions for practical classes Literature
2
The organizational structure of a bank.
The intermediary and liquidity roles Principal–agent problems, between depositor and bank, shareholders and management, the bank and its employees, and the bank and its borrowers.
Differences in information between principal and agent and selection and moral hazard.
The banks’ growing reliance on non-interest income by banks.
How should banks react to the development of new financial methods, such as securitisation, instruments such as derivatives, or technology such as the internet with e-cash?
International financial markets
3
ML [1,3]
ML [2]
Form of control
4
Quiz
Written minicontrol work
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Max. score
5
100
100

3
4
5
6
7
8 and the growth of international banking.
Asset liability management, duration gap analysis and other standard approaches to managing financial risk, as well as derivatives, including futures, forwards, options and swaps. Do the newer methods and instruments reduce risks in the banking system, or, perversely, raise them?
The logic and content of Basel 1 in 1988, as well as the likely consequences of the new
Basel 2. While the Basel
Committee’s main concern is with the supervision of international banks, other organisations have focused on international financial stability.
The US banking structure: advantages and disadvantages.
The US payments system.
The principles and practice of
Islamic banking. Iran and Pakistan operate Islamic banking systems and ban conventional western banking.
The challenges faced by Islamic banking.
To identify the determinants of bank failure. A quantitative approach gives more precise answers to questions such as the link between failure and asset management, inadequate capital, low profitability, general managerial incompetence, fraud macroeconomic factors. and
The circumstances surrounding the near collapse of the hedge fund, Long Term Capital
Management (LTCM) are reviewed to illustrate how
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ML [1,3]
ML [1,3]
ML [4]
ML [3]
ML [1,4]
ML [1,3]
Quiz
Quiz
Quiz
Presentation
Presentation
Presentation стр. 5 из 9
100
100
100
100
100
100

9
Theme №
1
1
2
3
4 стр. 6 из 9 problems in a small non-bank can, some think, threaten the world financial order.
Banking is a contestable market.
Recent work on a generalised pricing model is reviewed. Using this approach, the question is: what variables influence the price setting behaviour of banks with respect to their core products, and is there any evidence of Cournot or other types of behaviour?
ML [1]
IWST SCHEDULE
Written minicontrol work
Assignments for IWS
2
A brief overview of banking structure, using data from the
USA, UK and Kazakhstan to illustrate the variation in banking systems. The main organizational forms in banking, such as: universal, commercial, investment, merchant banks, holding companies and financial conglomerates.
The relationship between banks and central banks.
How banks can turn potential threats into opportunities.
What is the future for cash?
More generally, could IT developments threaten core bank functions or will the
21st century see the end of banks as we know them?
Why banks exist and the challenges they face.
The instruments of Risk management. The problems of methodology of risk management
The respective roles played by Basel 1 and 2, the key
Literature Form of control
3 4
ML [3,4],
AL
ML [1,
4], AL
ML [1],
AL
ML [1,3],
AL
Essay
Essay
Report
Report
Deadline
(week)
5
7
7
9
10
100
Max. score
6
100
100
100
100
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5
6
7
8 issues now facing policy makers in the area of financial stability and international bank supervision.
Four mega banking groups now dominate the Japanese banking system. Will these changes be enough to save it?
The European Union’s single market programme, the role of the European Central Bank and the issue of whether supervision of the EU should remain the responsibility of member states.
Sovereign and political risk analysis. This section addresses questions such as why do emerging market economies require external finance? What causes some of them, periodically, to default? What is the nature of sovereign risk and how is it linked to and compounded by political risk?
The fundamentals in banking, risk management, regulation, the interaction between regulation and structure, and banking in emerging markets
A sufficient number of bank failures can lead to a banking crisis and, ultimately, if not kept in check, a financial crisis. At the close of the 20th century, a financial crisis in
Thailand triggered a set of crises throughout the region.
Are crises becoming more frequent, and if so, what policies should be used to contain them?
The arguments for and against a lender of last resort, and in some quarters, proposals for an international lender of last resort.
ML
[1,3,4],
AL
ML [3,4],
AL
ML [1,3],
AL
ML [1],
AL
Report
Report
Essay
Essay
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11
12
13
14 стр. 7 из 9
100
100
100
100

стр. 8 из 9
9
The growing trend in mergers and acquisitions in banking, which was especially pronounced in the 1990s.
Some of the extensive empirical literature on bank
M&As is reviewed, exploring the causes and consequences of bank mergers.
ML [4],
AL
Essay 15
100
6 List of main and additional literature
Main literature
1.
Shelagh Heffernan“Modern finance”, 2009, electronic resource
2.
Murray Rothbard “The mystery of finance” 2008, electronic resource
3.
Jesus Huerta de Soto “Money, bank credit and economic cycles” 2007, electronic resource
4.
Roy C. Smith , Ingo Walter, Gayle DeLong, “Global Finance” 2010, electronic resource
Additional Reading
1.
Stiglitz, Joseph E. (2003). Globalization and Its Discontents . New York, NY: W. W.
Norton & Company.
2.
Stiglitz, Joseph E. (2007). Making Globalization Work . New York, NY: W. W. Norton &
Company.
3.
Schneider, Jane (2002). "World Markets: Anthropological Perspectives". In MacClancy,
Jeremy. Exotic No More: Anthropology on the Front Lines . Chicago, IL: University of
Chicago Press.
Course policy
Mastering the discipline “World banking system” provides for mandatory attendance at lectures, practical and laboratory classes and independent work.
Independent work includes theoretical study of questions related to those lectures that were not included in the theoretical course or were considered briefly, in-depth study on the recommended literature.
Independent work of students with a teacher includes more in-depth study and consolidation of those lectures. For IWST student prepares materials on the topic and answers questions. First and second control is carried out in the form of a survey on the subjects covered, with tickets (or questions, tests) and measured at 100 points system.
The exam is held in the form of orally on the open issues.
Conditions of the course:
Compulsory attendance;
Learning must provide the attendance of at least 80%. In the case of absences due to illness
(confirmed by a certificate 095-U, valid 3 days), the student can get an order of the Director
(Dean) of the Department of the individual delivery schedule tasks. Upon expiration of the job schedule will not be accepted.
Learner who is late by more than 5 minutes, it is considered to miss school without a valid reason with setting 0 points for the occupation, and thus has the right to attend class. For the use of phones and computer resources without the permission of the teacher, the student is removed from class, per session gets 0 points. The trainee is obliged to observe the Code of Ethics of
University students, to treat with respect to the teacher and other students. For violations of
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(current, MT and FE) evaluation of the discipline will be canceled.
Activity during practice (seminar) sessions.
The trainee is required to take an active part in the practical sessions. Learner, not taking an active part in the lesson, distracted to perform other activities, receives for engaging 0 points.
Preparing for classes to homework and the IWS.
Careful preparation and execution of tasks are prerequisites of the course. If you are using
Internet resources and other sources of information, the student is required to indicate the source used during the quest. Plagiarism is to use more than 200 words of text, without reference to the source. In case of plagiarism student receives 0 points for a task, when re-identifying this fact assessment for the course will be canceled.
Letting jobs in a timely manner.
Learner passes the job on time. The learner has the right to take the job after the deadline in the presence of an individual schedule of delivery tasks. In some cases, the student has the right, in consultation with the teacher to hand over the job within 7 calendar days after the end of the deadline, the maximum score for this task can not exceed 80 points. At the end of the seven-day period assignments are not accepted.
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