International Bank Management

Brief description

  • Central Bank policy (ECB, Fed, BoE, SNB, BoJ, …)
  • Actors in the international financial markets (IMF, BIS, OECD, …)
  • FOREX
  • Interest rate parity
  • Foreign exchange risk
  • Hedging FX risk
  • Funding source and liquidity risk
  • Bank´s reserve
  • Cost of bank funds
  • Short term secured funding
  • Repo and Liquidity
  • Fund transfer Pricing
  • Net interest income
  • Economic value of equity
  • MBS
  • ABS
  • Interest rate models

Mode of delivery

Präsenzveranstaltung

Type

Pflichtfach

Recommended or required reading and other learning resources/tools

Farahvash, P. (2020): Asset-Liability and Liquidity Management, Wiley
Hempel, G. (2008): Bank Management: Text and Cases, Wiley

Planned learning activities and teaching methods

Lecture, self-study with educational videos and online-quizzes, buzz groups

Assessment methods and criteria

Final written exam (100%)

Prerequisites and co-requisites

ALM, Risk Management and International Banking Regulation, Bank Controlling, Strategy, Organization, Change and Innovation

Infos

Degree programme

International Banking and Finance (Master)

Cycle

Master

ECTS Credits

3.00

Language of instruction

English

Curriculum

Part-Time

Academic year

2025

Semester

2 SS

Incoming

Yes

Learning outcome

After successful completion of the lecture, the students can

  • describe the roles of the IMF, the BIS and the OECD
  • distinguish between fixed and floating rate regimes, recognize the graduated nature of floating regimes, and explain the basic economic rationale for each type of regime
  • explain why and how central banks intervene in the foreign exchange market and in their domestic money market, and understand their targets of monetary policy
  • identify the economic and financial indicators that are proxies for the main items in the national income accounts and explain the connection
  • understand the impact of a change in the spot rate on an FX swap
  • describe how interest is managed in matched-principal FX swaps
  • distinguish domestic, foreign and eurobond markets
  • understand and distinguish different bond types such as ABS and covered bonds, index-linked bonds, bonds with puts, calls, etc.
  • explain the importance of government bond markets
  • explain the impact of credit risk (and credit spreads) on bond prices and swap rates
  • define a Repo
  • understand the logic underlying the Black-Scholes theory
  • outline some of the alternative pricing models available, including the binomial theorem for major underlying asset classes (Cox-Ross-Rubinstein, Monte Carlo, etc.)
  • describe the exclusive roles of the front office, middle office (risk management
  • function) and back office, and explain the need for the segregation of their duties
  • describe the role of the ALCO
  • describe the role of the credit committee
  • describe the role of audits
  • define risk capital, explain its role in covering unexpected losses, distinguish
  • between economic and regulatory risk capital, and outline how capital is raised and reinvested
  • explain the the architecture of the Basel III Accord
  • define VAR
  • understand VAR and other sensitivity measures for managing the bank book

Course code

0230-17-01-BB-EN-12