Duration
30h Th
Number of credits
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the second semester
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
This course features in the framework of the CFA Institute University Recognition Program. It spans a significant portion of the CFA Programe Candidate Body of Knowledge (CBOK), and explicitly prepares for the CFA certification.
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. Introduction to Banking
1. Financial institutions and intermediaries
2. Different types of banks
3. The bank's financial indicators
B. The Economics of Banking
1. The neo-classical theory of banking
2. Banking and macroeconomics
C. Understanding the Banking Business
1. The commercial bank's activities
2. The risks of a bank's activities
3. Principles of ALM
D. Regulatory Landscape in Banking
1. Basel III
2. The Banking Union
3. Challenges for 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. Introduction to Solvency II
Learning outcomes of the learning unit
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.
Intended Key Learning Outcomes:
In concordance with the Key Learning Outcomes of the Master in Management Sciences, this course aims to enable the student to:
- Strategy: Establish a strategy in order to optimize the value chain of a company, an organization or a project
* based on the analysis of its financial and economic context.
* taking into account its political, social and societal context.
* taking into account its legal constraints.
* adopting the position of a specialist in the field of management of his / her finality.
* demonstrating a critical mind and scientific precision.
- Implementation: Take charge of the everyday management of a company, an organization or a project
* implementing the strategy that was established for this company, organization or project.
* in a holistic perspective, taking into account the interactions between its different functions.
* capitalizing on the characteristics of a more and more digitalized world.
* analyzing his/her managerial practice with a critical and ethical mind.
- Control: Plan and implement the performance and quality control in a company, an organization or a project
* in a holistic perspective, taking into account the interactions between its different functions.
- Communication: Communicate efficiently, internally and externally, about a company, organization or project
* in English.
- Adaptability: Adapt his/her managerial practice to the needs of a fast-evolving world.
* being conscious of its societal, economic, political and environmental issues.
* showing curiosity and a scientific precision of academic level.
* showing creativity, autonomy and entrepreneurial spirit.
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...).
- Practical case (by teams of 2) dedicated to the analysis of a financial institution
- Exercises sessions on Excel and Matlab, practical issues are handled (use of financial data provider).
Mode of delivery (face to face, distance learning, hybrid learning)
Ex-cathedra lectures: 6*4h = 24h
Self-study and case development: 15h
Exercises: 4h
Recommended or required readings
Powerpoint presentations (available on the university's website).
Documentation posted depending on hot topics
Banking: "Bank Management & Financial Services (9th Ed)" Peter S. Rose, Sylvia C. Hudgins
Insurance:" Risk Management and Insurance (2nd Ed)" Harrington and Niehaus
1. Evaluation tools and criteria:
- written exam (2 parts)
The grade will be decomposed as follows:
- 50% exam - banking
- 50% exam - insurance
· assignment by groups of 2 (bonus points)
2. Evaluation schedule:
- Written exam : during evaluation period
- group assignment: after the Easter break
Work placement(s)
Organisational remarks and main changes to the course
Contacts
Georges Hübner
Professor
Department: HEC-ULg : UER / Finance
G.Hubner@uliege.be
Fabien Boniver
Invited Professor
Department: HEC-ULg : UER / Finance
F.Boniver@uliege.be
Célina Thonus
Assistant
Department: HEC-ULg : UER / Finance