Commercial Banking 2400-FiR3BK
The lecture is to provide basic, systematic theoretical and practical knowledge related to the nature, role and functioning of commercial banks. During the course the student will be familiar with: the essence and meaning of financial intermediation by commercial banks, basic microeconomic models of banks, the main management areas in these companies including: liquidity management and asset management, and the foundations of a surveillance system. Students will also learn about the main products of commercial banks, basic banking accounts, balance sheet analysis and input-output accounts, including risk analysis and performance. The lecture also includes the basic elements of market strategy / business bank with a special focus of a promotional and marketing
Type of course
Student knows and understands the economic substance of financial intermediation, including the role of commercial banks in this system.
Student has knowledge about primary products of commercial banks. Student knows the structure of the balance sheet of commercial banks and knows and understands the major components of income and expenses, including creating a profit.
Student knows and understands the multiplicative model of a commercial bank.
Student knows and understands the specific nature of the production function of a commercial bank. Student knows the basic microeconomic models of a commercial bank (the Monti-Klein model), concerning: the monopolistic, oligopolistic, and openly competitive structures. Student understands the impact of market structures on the margins of commercial banks.
Student knows and understands the importance of random events in commercial banking. Student knows and understands the micro-stochastic model of a commercial bank. Student knows and understands the concept of the expected deficit of commercial bank liquidity. Student understands the role of commercial bank reserves and knows the basic stochastic models of reserves.
Student knows and understands the concept and importance of capital requirements.
Student knows and understands the types of risks in the operation of commercial banks. Students know the causes, symptoms and consequences of these risks. Student knows what mechanisms generate these risks, understands the role of asymmetric information and moral hazard. Student knows the basic methods of reducing these risks.
Student knows and understands the impact on the behavior of commercial banks may have the phenomenon of information asymmetry and moral hazard. Student understands that they cause disturbance to the functioning of market mechanisms, knows and understands the nature and types of credit rationing. Student knows the Tirole model of credit rationing. Student has knowledge about the needs and role of banking supervision.
Student has knowledge of the practical principles of commercial bank management. He knows and understands the role of bank marketing. He knows and understands the role of bank marketing.
Student knows how to make a basic analysis of commercial bank balance sheet and on that basis to assess soundness of the bank.
Student is able to compare the basic banking products in terms of their effectiveness and risks.
Student knows how to analyze a credit agreement, including to identify and assess the legal and financial consequences for the borrower.
Student knows how to interpret the nature, purpose and effect of supervisory regulations.
Students can use trade press articles about the commercial banking in professional activity. Student has the tools essential for further development, theoretical and practical knowledge about commercial banking, also to the extent required for higher education degrees.
C. Social competence:
Student is aware of the importance of commercial banks to financial stability.
Student understands the need to strictly comply with the rules of the bank - both in terms of the economic interest of individual banks and their stakeholders.
Student understands the importance of professionalism and integrity in building confidence in the banking system, which is the basis of stable and effective - in the longer term - action.
Student understands the complexity, depth and variability of commercial banking relationships with many areas of the economy. Student is aware that in the case of professional work in the financial sector, especially banking, should continually expand their knowledge in many directions about commercial banks.
KU05, KU06, KK01, KK03, KU04, KU03. KU02, KU01, KW03, KW02, KW01
The final exam without any additional conditions for admission: a multiple choice test, the time of writing 50 minutes
1. Freixas Xavier, Rochet J.Ch., Mikroekonomia bankowa, CeDeWu, Warszawa 2007 (Rozd.1,2,4,8,9)
2. Heffernan S., Nowoczesna bankowość, PWN, Warszawa, 2007
3. Iwanicz-Drozdowska M., Nowak A., Ryzyko bankowe, SGH, Warszawa, 2002
Matthews K., Thompson J., Ekonomika bankowości, PWE, Warszawa 2007
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: