Objectives and competences
In-depth knowledge the meaning of monetary system for macroeconomic environment stability, getting actual knowledge about institutional banking environment, recovery and resolution regimes of banking sector, institutional regulatory competences of central banks and implementation of EU regulatory requirements into national legislation, the possibility for evaluation of macroeconomic environment and dynamics of the banking sector and its meaning for enterprises and the sustainable structure of financial sources.
Content (Syllabus outline)
I. Monetary policy and its transmission mechanisms:
1. Money supply, tools and execution of monetary policy
1.1. Central banks balance sheet
1.2. Control of monetary base
1.3. Multiple deposit creation
1.4. Factors that determine money supply
1.5. Money multiplier
1.6. Tools of monetary policy
1.7. Targets, intermediate targets of monetary policy
1.8. Strategy of monetary policy: inflation, monetary and exchange rate targeting
1.9. Choosing of policy instruments
1.10. Taylor rule
2. Unconventional and conventional instruments of monetary policy
2.1. Crisis and unconventional monetary policy instruments
2.2. Instruments in a stable economy
3. Transmission channells of moentary policy
3.1. Transmission channels
3.2. Response of monetary policy to shocks
3.3. The role of expectations and transmission
II. International banking, supranational financial policy making institutions
1. International dimension of financial intermediation
2. Bank regulation and capital requirements
3. Supranational financial policy making institutions
III. Financial globalisation: oportunity and crisis
1. Banking and financial fragilty and stability
2. Macroprudential indicators and instruments
3. The challenge of regulating international banking
4. Capital structure and risk
5. Economic analysis of financial regulation
IV. Central banking supervision and regulatory competences of central banks
1. Implementation of regulaty requirements of euro area into national legislations of the EU members
2. Recovery and resolution regimes of banks, the pillars of bankig union
3. The role od EBA - European Banking Asoociation
4. The state aid rules in EU
V. Specifities of the banking crisis in Slovenia and the implemenatition of regulatory requirements of euro area directives into national legislation
1.1. Privatisation of Slovenian economy and traps
1.2. Overheating of Slovenian economy and the consequences of the introduction of euro
1.3. Recapitalisation of banks and bad bank, consequences for economy
Learning and teaching methods
- classical method,
- AV presentations (power point),
- individual study and work,
- explanation of actual articles on tutorial.
Intended learning outcomes - knowledge and understanding
In this course, students:
1. Student has depth and systematic understanding of knowledge in monetary economics, and can work with monetary theory and research-based knowledge at the forefront of their academic discipline. (PILO 1a)
2. Student has the awareness and ability to manage the implications of dilemmas and work pro-actively with other complementary knowledge. (PILO 3c)
3. Student can undertake with critical awareness analysis of complex, incomplete or contradictory knowledge in the field of monetary theory and policy, can communicate the outcome effectively (PILO 2a, PILO 3b)
4. Student has a level of conceptual understanding of monetary economics that will allow her/him critically to evaluate research, advanced methodologies and argue alternative approaches. (PILO 3b)
5. Student can synthesise information with critical awareness, utilising knowledge or processes in the field of monetary theory and practice. (PILO 3a, PILO 4a)
6. Getting the knowledge about specific reasons of banking crisis in Slovenia. (PILO 1a, PILO 2a)
7. The possibility for evaluation of macroeconomic environment and dynamics of the banking sector and its meaning for enterprises and the sustainable structure of financial sources. (PILO 3a)
8. Possibility to assess monetary banking theory through banking business models within monetary policy frameworks. (PILO 1a, PILO 2a)
9. The possibility of placing the banking sector in the specifics of the national economy through the consolidation of banks. (PILO 3b)
The PILO label (i.e., Programme Intended Learning Outcomes) defines the contribution of each listed intended learning outcome of a course towards achieving the general and/or subject-specific competencies or learning outcomes acquired through the programme.
Intended learning outcomes - transferable/key skills and other attributes
In this course, students:
1. Student has depth and systematic understanding of knowledge in monetary economics, and can work with monetary theory and research-based knowledge at the forefront of their academic discipline. (PILO 1a)
2. Student has the awareness and ability to manage the implications of dilemmas and work pro-actively with other complementary knowledge. (PILO 3c)
3. Student can undertake with critical awareness analysis of complex, incomplete or contradictory knowledge in the field of monetary theory and policy, can communicate the outcome effectively (PILO 2a, PILO 3b)
4. Student has a level of conceptual understanding of monetary economics that will allow her/him critically to evaluate research, advanced methodologies and argue alternative approaches. (PILO 3b)
5. Student can synthesise information with critical awareness, utilising knowledge or processes in the field of monetary theory and practice. (PILO 3a, PILO 4a)
6. Getting the knowledge about specific reasons of banking crisis in Slovenia. (PILO 1a, PILO 2a)
7. The possibility for evaluation of macroeconomic environment and dynamics of the banking sector and its meaning for enterprises and the sustainable structure of financial sources. (PILO 3a)
8. Possibility to assess monetary banking theory through banking business models within monetary policy frameworks. (PILO 1a, PILO 2a)
9. The possibility of placing the banking sector in the specifics of the national economy through the consolidation of banks. (PILO 3b)
The PILO label (i.e., Programme Intended Learning Outcomes) defines the contribution of each listed intended learning outcome of a course towards achieving the general and/or subject-specific competencies or learning outcomes acquired through the programme.
Readings
Obvezna literatura:
Friderik Mishkin. 2022. The Economics of Money, Banking and Financial Markets. 13th edition. Columbia University. Published by Pearson. Izbrana poglavje (chapters): 6, 9, 10, 12, 13, 14, 15, 16, 17, 24, 25, 26.
Joseph P. Daniels, David D. van Hoose. 2014. International Monetary and Financial Economics. Pearson Press. Izbrana poglavja (chapters): 6, 7, 9.
Timothy W. Koch, S. Scott MacDonald. 2010. Bank Management. South-Western Cengage Learning. Izbrana poglavja (chapters): 2, 10, 12, 17
FESTIĆ, Mejra. Resolution regimes as the (sub)pillar of the Banking Union. Bančni vestnik: revija za denarništvo in bančništvo, ISSN 0005-4631. [Tiskana izd.], nov. 2015, vol. 64, no. 11, str. 48-52.
Dodatna literatura (additional literature):
FESTIĆ, Mejra. Vzroki finančne in gospodarske krize. V: BOHINC, Rado (ur.). Korporativno upravljanje kot orodje za premagovanje krize. Koper: Univerza na Primorskem, Znanstveno-raziskovalno središče - Pravni inštitut, Univerzitetna založba Annales. 2013, str. 31-40. [COBISS.SI-ID 2427347]
FESTIĆ, Mejra. The stability of the credit supply in the globalized banking sector environment : the case of the EU new member states-10. Prague Economic Papers : quarterly journal of economic theory and policy, ISSN 1210-0455, 2015, no. 4, vol. 24, str. 386-398, doi: 10.18267/j.pep.543. [COBISS.SI-ID 12086556], [JCR, SNIP, Scopus do 12. 3. 2016: št. citatov (TC): 0, čistih citatov (CI): 0]
James S. Henry. 2003. The blood bankers. Published by: Thunders mouth press. Four walls eight windows. USA.
Additional information on implementation and assessment Course paper;
Final exam.
Course paper - individually written course paper with oral defence
Final exam - Written exam with at least one question from each basic theoretical chapter
