Syllabus:

Lecture 1: Principles of the functioning of the financial markets, key terms, reasoning of the financial markets regulation

Lecture 2: Structure of the financial market – particular sectors of the financial market, drivers of the financial sector development, types of transactions on the financial market.

Lecture 3: The basic rules for the financial institutions operation – regulation of the entry into the sector, liquidity rules, capital adequacy rules.

Lecture 4: Role of the central banks, role of the lender of last resort – possible ways of the financial institutions rescue.

Lecture 5: Central bank policies.

Lecture 6: Financial market in the UK - history, role of the Bank of England, changes after the Northern Rock fall, etc. Financial market in the USA - history, changes set by Dodd-Frank Act, comparison
with the Czech Republic.

Lecture 7: Investment banking, investment funds – characteristics of the investment banking and the issue of its separation from the commercial banking, types of the investment funds.

Lecture 8: Banking union - fundamental pillars, position of the Czech Republic and other member states, explanation of the barriers to the fully-fledged Banking union.

Lecture 9: Financial crisis – typology of the financial crisis, analyses of the most important financial crisis in the 20th century. The global financial crisis 2007–2009 – causes, subsequent regulatory changes.

Lecture 10: Topical European issues in the regulation and supervision of the financial market.

Course Goals:

The goal of this course is to acquaint students with the basic principles of the functioning of the financial market and its regulation.

Mandatory literature:

Schooner, H. M., Taylor, M.: Global Bank Regulation: Principles and Policies, Burlington, MA, Academic Press, 2010
Mejstrik, M., Pecena, M., Teply, P.: Banking in theory and practice, Praha, Karolinum, 2014

Optional literature:

Douady, R., , Goulet, C., Pradier, Pierre-Charles: Financial Regulation in the EU: From Resilience to Growth, Palgrave Macmillan, 2017
Kedar-Levy, H.: A Critical History of Financial Crises, Imperial College Press, 2016
Caprio, G.: Handbook of Key Global Financial Markets, Institutions, and Infrastructure, Academic Press, 2012