International Banking Business

  • Central banks’ 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
  • Net interest income
  • VAR
  • Risk adjusted performance measures
  • Managing the bank book

Mode of delivery

face to face

Type

compulsory

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
Course handouts

Planned learning activities and teaching methods

Expats from Austrian international banks teach this practical course with online-lecture elements, Flipped Classroom teaching; Self-study elements with textbook and online videos; Students work on their home assignments in peer groups. Peers have to present their solutions. classroom-debates on presented solutions; Peer feedback and assessment;

Assessment methods and criteria

Continuous assessment (100%): Home assignments in groups, Presentation of Individual assignments in class and quizzes will be evaluated.

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

6.00

Language of instruction

English

Curriculum

Part-Time

Academic year

2024

Semester

2 SS

Incoming

Yes

Learning outcome

After the successful completion of this practical course students can

  • illustrate different roles of the IMF, the BIS and the OECD
  • analyse the reasons why and how central banks intervene in the foreign exchange market and in their domestic money market
  • calculate both sides of the theoretical swap points from a two-way spot and the bid and offered interest rates
  • calculate a FX cross-rate swap
  • calculate the profit or loss on a spot, forward FX and FX swap position
  • calculate the fair value of plain vanilla and zero-coupon bonds from yield-to-maturity
  • calculate the expected change in portfolio value for a given change in yield out of a given modified duration
  • calculate a zero-coupon yield from a series of yields-to-maturity using the “bootstrapping” method and calculate a par yield from zero-coupon yields
  • evaluate the price of an IRS
  • calculate the price of an option with Black-Scholes model
  • decompose Caps and Floors
  • calculate the exact cost of borrowing or return on lending that is hedged with an FRA
  • calculate VAR of portfolios
  • calculate liquidity risk measures
  • hedge FX, interest rate and liquidity risk of a given portfolio
  • evaluate the impact of trading activities on balance sheet, P/L- and CF statement
  • calculate and interpret risk adjusted performance measures
  • choose trading activities according to given management goals

Course code

0230-17-01-BB-EN-13