- Instructor: Dr. Majdi Hassen
- Email: majdi.hassen@gmail.com
- Pre-requisite:
- Principles of finance BCOR 260
- Program of study: Optional Course for Major Finance
Course Description
This course aims to equip students with a comprehensive understanding of monetary policy, banking firm theory, and the regulatory framework governing banks. By the end of the course, students will have the knowledge and skills necessary to critically analyze and evaluate the functioning of monetary systems, banking institutions, and regulatory measures in the financial sector. They will have a thorough understanding of the role of money and banks in the broader economy and of the unique role of banks in the financial system. This module enables students to master the fundamentals of monetary theory and its relevance to policy making.
Course Learning Outcomes
Upon successful completion of the course “Money and Banking,” students will be able to:
Understand the principles and concepts of monetary policy (Chapter 1): a. Describe the functions and goals of central banks in the context of monetary policy. b. Analyze the tools and instruments used by central banks to implement and control monetary policy. c. Evaluate the impact of monetary policy on the economy, including interest rates, inflation, and economic growth.
Comprehend the theoretical foundations of banking firms (Chapter 2): a. Explain the role and functions of banks within the financial system. b. Investigate the theories and models that underpin the behavior and operations of banking institutions. c. Analyze the risks faced by banks and the strategies employed to manage those risks.
Examine the regulatory framework of banks, with a focus on Basel I (Chapter 3): a. Understand the objectives and key principles of bank regulation. b. Evaluate the Basel I framework and its impact on banking operations and risk management. c. Assess the strengths and limitations of Basel I in promoting stability and soundness in the banking sector.
Explore the advancements in bank regulation, including Basel II and III (Chapter 4): a. Compare and contrast the Basel II and Basel III frameworks with Basel I. b. Analyze the enhancements and revisions introduced in Basel II and III to address the shortcomings of the previous regulations. c. Evaluate the effectiveness of Basel II and III in promoting financial stability and preventing systemic risks.
Course Materials
- Shelagh Heffernan: Modern Banking 2005
- Xavier Freixas and Jean-Charles Rochet: Microeconomics of Banking, Second Edition
- Circulaire aux établissements de crédit N°91-24 du 17 décembre 1991 relative à la division, couverture des risques et suivi des engagements
- CIRCULAIRE AUX BANQUES ET AUX ETABLISSEMENTS FINANCIERS N°2021-01
- The law n°2016-48 of July 11, 2016, relating to banks and financial institutions.
Course Content
- monetary policy.
- banking firm theory.
- bank’s regulation, Bassel I
- bank’s regulation, Bassel II and III
TBS Grading Scale
| Scale (out of 100) | TBS Grading Scale | Grade Point |
|---|---|---|
| Grade > 90 | A | 4.0 |
| 87≤ Grade < 90 | A- | 3.7 |
| 83 ≤ Grade < 87 | B+ | 3.3 |
| 80 ≤ Grade < 83 | B | 3.0 |
| 77 ≤ Grade < 80 | B- | 2.7 |
| 73≤ Grade < 77 | C+ | 2.3 |
| 70 ≤ Grade < 73 | C | 2.0 |
| 67 ≤ Grade < 70 | C- | 1.7 |
| 65 ≤ Grade < 67 | D+ | 1.3 |
| 60 ≤ Grade < 65 | D | 1.0 |
| Grade < 60 | F | 0.0 |