All programmes > Money, Banking and Finance

Money, Banking and Finance (B-KUL-HMG02A)

6 ECTSEnglish39 First termCannot be taken as part of an examination contract
Vadasz Tamas (coordinator) |  Vadasz Tamas
OC Master of Management Engineering FEB Campus Brussel

Aims

This course offers a broad theory-based introduction to modern finance. The aim is to equip students with a general understanding of financial markets, institutions, products, and various mechanisms that ensure the day-to-day operation of the financial sector. Finance is essential for the smooth functioning of the real economy. In this course, we will study, discuss, and critically think about the variety of ideas and economic principles that shape the evolution of the financial services industry and its relation to other businesses, ensuring that finance can benefit broader society. By the end of the course, students will be able to demonstrate a sound understanding of the economic and societal role of financial institutions and reflect on various present-day issues related to financial markets.

Previous knowledge

No specific prior knowledge is required, but note that the course targets students with a strong quantitative and technical/scientific background. A basic understanding of undergraduate-level analysis, linear algebra, and probability theory is highly recommended.

Is included in these courses of study

Activities

6 ects. Money, Banking and Finance (B-KUL-HMG02a)

6 ECTSEnglishFormat: Lecture39 First term
Vadasz Tamas
OC Master of Management Engineering FEB Campus Brussel

Content

  • Introduction to financial markets: institutions, instruments, mechanisms.
  • The time value of money. Understanding interest rates.
  • Fixed income markets. Managing fixed income portfolios.
  • The term structure of interest rates.
  • Decisions under uncertainty. Risk aversion.
  • Modern portfolio theory: the mean-variance framework.
  • Equilibrium asset pricing models: CAPM and APT. Factor models.
  • The Efficient Market Hypothesis and the behavioural critique.
  • Market microstructure
  • The economics of banking. Why do banks exist and what do they do?
  • Market structure and competition in Banking.
  • Financial crises.
  • Risk measures. Bank risk management: credit, market, and operational risk. The Basel-framework.
  • The modern theory of money.
  • Central banks and monetary policy.
  • Payment systems.

(This list of content is preliminary and subject to change)

Course material

Lecture presentation slides and other written lecture notes,

Pre-recorded videos,

Problem sets with solutions,

Compulsory research papers and other readings.

Format: more information

Blended learning - Flipped classroom - Group assignment

Evaluation

Evaluation: Money, Banking and Finance (B-KUL-H75771)

Type : Partial or continuous assessment with (final) exam during the examination period
Description of evaluation : Written, Paper/Project, Presentation, Take-Home
Type of questions : Multiple choice, Open questions, Closed questions
Learning material : Course material, List of formulas, Calculator, Computer, Reference work

Explanation


Evaluation caracteristics

The evaluation consists of a combination of take-home assignments (e.g., data analysis, research critique, in-class presentations) and a written final exam. The final exam is closed book; a calculator and a handwritten formula sheet may be used. The exam consists of a combination of single-answer and multiple-answer test questions, numerical open questions, and short essays.

Determination final result

Students must obtain a minimum of 40% on the written exam to achieve a passing grade, irrespective of the previous points from assignments.

Information about retaking exams

In the retake exam the previous assignment scores are lost, and the written exam is for the entire 100% of scores.