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Banking and Capital Markets

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code154-0304/08
Number of ECTS Credits Allocated4 ECTS credits
Type of Course Unit *Choice-compulsory type B
Level of Course Unit *Second Cycle
Year of Study *Second Year
Semester when the Course Unit is deliveredWinter Semester
Mode of DeliveryFace-to-face
Language of InstructionCzech
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
KOR21Ing. Kateřina Kořená, Ph.D.
NOV33Ing. Martina Novotná, Ph.D.
TIC02prof. Ing. Tomáš Tichý, Ph.D.
NED0043Ing. David Neděla, Ph.D.
Summary
The aim of the course is to introduce the role and importance of financial markets. Students will learn to understand banking system's, money and capital market's principles and functioning. At the end of the course, students should be able to understand central and commercial banking, to distinguish particular banking products, to compare financial intermediaries, to master various types of securities, to learn investment principles including collective investment, to evaluate situation in the Czech financial market and in global financial markets.
Learning Outcomes of the Course Unit
The aim of the course is to introduce the role and importance of financial markets. Students will learn to understand banking system's, money and capital market's principles and functioning. After passing the course, students should be able to know:
-to understand central and commercial banking,
-to distinguish particular banking products,
-to compare financial intermediaries,
-to master various types of securities,
-to learn investment principles including collective investment,
-to evaluate the situation at the Czech financial market and in global financial markets.

Course Contents
1. Financial system - its characteristics, the role and classification of financial markets.
2. Banking system – structure and classification, new trends and risks in banking, contemporary situation in the banking sector in the Czech Republic and in selected countries.
3. Central banks - the role, basic functions and key principles of central banking.
4. Banks and their role - banking system and economy, bank risks, bank evaluation, licensing and approval in the EU.
5. Bank liabilities of commercial banks – characteristics of deposit services (types of demand and savings deposits) and non-deposit liabilities. Regulation and insurance of deposit services.
6. Credit services of commercial banks - characteristics of credit products. Lending policy, creditworthiness and bank loans.
7. Off-balance sheet services of commercial banks - characteristics of non-deposit and non-loan products. Trusteeship.
8. Payment systems - the role of payment systems in the economy, their characteristics and classification. Cash payment.
9. Role and classification of financial instruments in capital markets - role, importance and types of securities, stocks, classification of stocks, stock yield and risk.
10. Bonds, classification of bonds, bond yield and risk, importance of rating.
11. Financial derivatives and innovatios – definition and classification of financial derivatives, forwards, futures, options, structured instruments, securitization.
12. Fundamental analysis - global and industry analysis, company analysis, intrinsic value calculation.
13. Technical analysis, psychological analysis - principles of technical analysis, graphic methods and indicators, psychological analysis, principles of behavioral finance.
14. Asset management - professional portfolio management, management process, passive and active strategies, portfolio performance.
15. Capital markets subjects, stock exchanges - main participants in capital markets, stock exchange definition, types of stock exchange trading, security prospectus.
16. Collective investment - importance of collective investment, classification of funds, long-term investing, pension funds, regular investing.
17. Global financial markets - global financial centers, their characteristics and importance, gobalization and current trends.
18. Supervision and regulation in financial markets, role and goals of supervision and regulation in financial markets, institutional structure of supervision and regulation.
Recommended or Required Reading
Required Reading:
KANTNEROVÁ, Liběna. Základy bankovnictví: teorie a praxe. Praha: C.H. Beck, 2016. ISBN 978-80-7400-595-4.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8.
KANTNEROVÁ, Liběna. Základy bankovnictví: teorie a praxe. Praha: C.H. Beck, 2016. ISBN 978-80-7400-595-4.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8.


Recommended Reading:
CASU, Barbara, Claudia GIARDONE and Philip MOLYNEUX. Introduction to Banking. 3rd ed. Harlow: Pearson, 2022. ISBN 978-1-292-24033-6.
CHOUDHRY, Moorad. The Principles of Banking. 2nd ed. Singapore: Wiley, 2023. ISBN 978-1119755647.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer Česká republika, 2019. ISBN 978-80-7598-212-4.
CASU, Barbara, Claudia GIARDONE and Philip MOLYNEUX. Introduction to Banking. 3rd ed. Harlow: Pearson, 2022. ISBN 978-1-292-24033-6.
CHOUDHRY, Moorad. The Principles of Banking. 2nd ed. Singapore: Wiley, 2023. ISBN 978-1119755647.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer Česká republika, 2019. ISBN 978-80-7598-212-4.

Planned learning activities and teaching methods
Lectures
Assesment methods and criteria
Task TitleTask TypeMaximum Number of Points
(Act. for Subtasks)
Minimum Number of Points for Task Passing
ExaminationExamination100 51