FINA0051-1 : Banking and Insurance

Study Programmes 2015-2016

FINA0051-1

Banking and Insurance

Duration :

30h Th

Number of credits :

Master in economics : general (120 ECTS)		5
Master in management (120 ECTS)		5
Master in economics : general (60 ECTS)		5

Lecturer :

Fabien Boniver, Georges Hübner

Coordinator :

Georges Hübner

Language(s) of instruction :

English language

Organisation and examination :

Teaching in the second semester

Units courses prerequisite and corequisite :

Prerequisite or corequisite units are presented within each program

Course contents :

1. Partim Banking:
The course introduces the general activities of a financial institution, with a focus on the bank's role as a financial intermediary. The Bank's balance sheet structure is analysed in detail, with the specificities of the bank's objectives and constraints. The recent crises of 2008 and 2010-11 will be analysed with their impact on the evolution of the banking industry. The first elements of bank risk management will be introduced.
Content :
a. Lecture 1
i. Part A: Introduction to banking (Rose ch. 1,2,3)
ii. Part B: Financial structure (Rose ch. 5)
b. Lecture 2
i. Part A: Neo-classic theory of banking
ii. Part B: The management of capital (Rose ch.15)
c. Lecture 3
i. Part A: Measuring and evaluating performance (Rose ch. 6)
ii. Part B: Risk management for changing interest rates. ALM and duration techniques (Rose ch. 7)
iii. Part C: Credit risk in Banking

2. Partim Insurance:
The course introduces the notion of insurance as it is considered by its different stakeholders: the consumer and society, the insurer himself, the surrounding economical actors and institutions. The inverted production cycle of the insurance business is emphasized, and basic actuarial mechanisms for pricing and provisioning are exposed. Finally, the new European supervision and regulation context, "Solvency II", is presented.
a. Lecture 1 (cf. Harrington-Niehaus ch. 1, 4, 9)
i. Risk: definitions, classification, cost
ii. Insurance: a form of risk management
iii. Key facts about the European insurance market
iv. Some remarks on insurance availability and behaviours
b. Lecture 2 (cf. Harrington-Niehaus, ch. 8)
i. The inverted production cycle
ii. Cartography of an insurer activities and value creation
iii. Introduction to tariffs
iv. Introduction to reserves
c. Lecture 3
i. The need for prudential supervision and regulation
ii. Solvency I
iii. Towards Solvency II
iv. Some institutional actors

Learning outcomes of the course :

The course pursues two main objectives:
- Get a global understanding of bank and insurance-related concepts.
- Develop student's analytical and deductive skills to get a critical assessment of the situation and activities of a financial institution.

This course contributes to the following Intended Learning Outcomes :

ILO-1 : To strengthen knowledge and understanding of management disciplines and its legal, policy and social context

ILO-2 : Gaining the knowledge and understanding of one of the proposed fields of concentration or to gain deep knowledge in the field of the management being already specialized thru a first University Master Degree .

ILO-6 : Ability to speak 2 foreign languages: C1 in English and B2 in one other language.

ILO-13 : Professional capacity for written communication

Prerequisite knowledge and skills :

Introductory course of financial markets.

Planned learning activities and teaching methods :

Methodology used and level of estimated method:
- Ex-cathedra courses: theoretical sessions (preliminary review, introduction of theoretical concepts, case study...). - Exercises sessions on Excel and Matlab, practical issues are handled (use of financial data provider).

Mode of delivery (face-to-face ; distance-learning) :

A1 Ex-cathedra courses: 6*4h = 24h
A1 Course study: 15h
A3 Exercises: 4h