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Financial Institutions

Type of study Bachelor
Language of instruction English
Code 154-0577/01
Abbreviation FI
Course title Financial Institutions
Credits 5
Coordinating department Department of Finance
Course coordinator Ing. Martina Novotná, Ph.D.

Subject syllabus

1. Role of financial markets and institutions
• Role of financial markets,
• fundamentals of financial institutions (types of financial institutions),
• financial institutions industry (structure and competition)
• financial regulation (types of financial regulation).

2. Banking sector
• Types of banking (classification of banks according to different aspects),
• international banking (bank entry into foreign markets),
• central banking (the role of a central bank),
• bank regulation and supervision.

3. Overview of commercial banking
• The bank balance sheet and income structure,
• basic banking and general principles of bank management,
• off-balance sheet activities,
• measuring bank performance.

4. Nonbank operations
• Importance, overview and main activities of selected nonbank institutions,
• mutual and investment fund industry,
• investment banks, security brokers and dealers,
• insurance companies and pension funds.

5. Insurance companies
• Insurance company operations (rate making, claims settlement, etc.),
• financial operations of property and casualty insurers (balance sheet, income statement),
• life insurance companies (balance sheet, income statement),
• measuring financial performance of insurance companies.

6. Overview of insurance contracts
• Basic parts of an insurance contract,
• characteristics of life insurance (types and variations of contracts),
• the liability risk (basics of legal liability),
• homeowners and other insurance contracts.

Literature

CHOUDHRY, Moorad. The Principles of Banking. 2nd ed. Singapore: Wiley, 2023. ISBN 978-1119755647.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797 .
REJDA, George E. and Michael J. McNAMARA. Principles of risk management and insurance. 14th ed. Harlow: Pearson, 2022. ISBN 978-1-292-34974-9 .

Advised literature

CASU, Barbara, Claudia GIARDONE and Philip MOLYNEUX. Introduction to Banking. 3rd ed. Harlow: Pearson, 2022. ISBN 978-1-292-24033-6 .
HULL, John C. Risk Management and financial institutions. 6th ed. Hoboken: Wiley, 2023. ISBN 978-1119932482.
MISHKIN, Frederic, S. and Stanley G. EAKINS. Financial markets and institutions. 9th ed. Harlow: Pearson, 2018. ISBN 978-1-292-21500-6 .