This course deals with the recycling of money either through the banking system or though the capital markets, the modern financial products used and the financial services provided in this connection, their legal back up, their risks, the management of these risks, and the objectives, structure and effectiveness of modern financial regulation in terms of promoting financial stability and adequate protection of depositors and investors. In banking, the accent will be on asset backed funding in secured transactions or through finance sales (like in repos, factoring, finance leasing), on ordinary and credit derivatives, and on loan securitisation. In the capital markets, the accent is on modern capital market products and their holding, the issuing activity, underwriting, and trading, brokerage, and fund management activity. As to the regulatory response, the course goes into the main techniques of financial regulation, the differences between banking and capital market activity, the capital adequacy requirements, the EU harmonisation program in this area, and the effect of the 2008/9 financial crisis and the re-regulation efforts particularly in the EU and US.
Modern Financial Products, Services and Regulation
10 ECTs / 48h / English