DESCRIPTION

Financial institutions play a leading role in today’s economic context. The objective of this course is for the reader to understand the operation of financial institutions from within, taking into account the atmosphere in which they operate. This course facilitates, on the one hand, the understanding of recent events such as the subprime mortgages, real estate credit, nationalisation of banks, bailout of Spanish banks, cases of government intervention, problems in credit risk management, bank resolution processes, etc. And, on the other hand, it helps students understand the importance of suitable management in the results of banks.



On the other hand, in particular, this subject includes a large part of the topics that are considered basic for the initial training of the financial assistant, practitioner advisor or planner and, in general, of the students who wish to develop their profession in the field of consulting and asset management, such as private banking.



The main objective is to familiarise students with banking operations, not so much as a client of a financial institution, but from a bank management point of view, taking into account the reality of financial markets, so that the student acquires a minimum knowledge of training that will guide him towards the future professional development in the scope of the role of financial advisor that guarantees the most appropriate advice to the profile of the client with an ethical commitment towards him.



Through this subject, we will try to sensitize students to issues related to ethics in finance, ethical finance, sustainable finance, Agenda 2030 and SDGs in finance.



The starting point is the definition of the various financial institutions and the framework in which they operate. Subsequently, management tasks are analysed, focusing on those related to financing sources, investment and operations in financial markets, as well as the proper management of risks undertaken. It concludes by giving a global vision, studying the different strategic lines followed by credit institutions.

COMPETENCES

- An ability to identify the functions, characteristics and responsibilities of the different financial institutions taking into account the reality of the financial markets.

- An ability to gain an in-depth understanding banking operations and the financial statements of these entities to optimize their management.

- An ability to analyse bank risks to find out how to minimise their impact.

- An ability to analyse the strategic decisions of financial institutions.

- An ability to develop the ability to communicate and coordinate through teamwork to perform an analysis of the banking reality making use of information technologies.





RESULTS: Students should understand the main elements or aspects that comprise banking practices from perspective of integration and interrelation of concepts.

- Part I: The banking system and its environment

Topic 1. Financial entities in the current environment

- Part II: Bank operations

Topic 2. Liability operations

Topic 3. Asset operations

Topic 4. Non-traditional operations of financial entities

- Part III: Profitability and risk

Topic 5. Analysis of the financial statements of Savings Banks and Banks

Topic 6. Risk in financial entities

- Part IV: Strategic Direction

Topic 7. Competitive strategies of credit institutions

Face-to-face activities:

• On-site theoretical training in the classroom (master classes), which will be complemented with the approach and resolution of examples, cases and practical exercises, debates around videos exposed in class and current news (classroom practices) and in the computer classroom (computer practices), likewise at the end of the course there will be a seminar taught by a professional in the classroom.

• Development of activities (individual or in group) of a participatory nature in the traditional classroom (classroom practices) but that require prior preparatory work outside the classroom (search, reading and commenting on articles related to the subject -item 1-; search and exposition of cases on the current commercialization of bank deposits and credits -items 2 and 3-; analysis of the balance sheet of a financial entity -item 5-).



Non-face-to-face activities:

• Completion and defense of additional group work.



The training process within the classroom will be complemented by the autonomous learning process outside the classroom that each student will develop with the support of tutorials and the virtual classroom -eGela-, which will allow monitoring both practices in the classroom like group work.



Applied methodologies and techniques will be used, specifically, inverted classroom + puzzle + socrative in the first practice, while PBL is applied in practices 2 and 3, in order to promote collaborative work and autonomous learning.



eGela will be used as a fundamental tool to promote collaborative work, active participation and continuous evaluation. Appropriate feedback will be offered based on the previously established evaluation criteria, so that students become aware of their learning process and how to improve it. In eGela the tasks, deliverables, delivery dates, exhibition dates, evaluation (evaluation criteria and proposals and specific and personalized improvement indications) and qualification of the same will be detailed, likewise the complementary material of the subject (slides, articles, cases, videos, etc.).

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Written test to be taken (%): 50
  • Realization of Practical Work (exercises, cases or problems) (%): 25
  • Team projects (problem solving, project design)) (%): 25

The continuos evaluation procedure of the subject will consist of:



1. A written test (50% of final mark), which will consist of various questions with theoretical and practical content (exercises, problems and/or actual cases) to be expanded upon by the student. The objective of this evaluation is for students to demonstrate they have achieved the objectives of the course.



A minimum mark (4 points out of 10) must be attained in this written test so that the rest of the mark can be added.



2. Continuous assessment (50% of final grade) will allow for up to 2.5 points for the performance and defence of a group project, as well as 2.5 additional points for (individual or group) participatory activities in the classroom. The points obtained by performing any of the proposed projects (maximum 5 points) will be considered as firm. The points obtained through projects are valid for the year’s two evaluations.





NB: Performance of group and individual projects and practicals, and presenting them will be required in order to be able to take the final exam.





Students who have not waived continuous evaluation by the deadline and finally decide not to attend must notify the fact in writing at least on 15th april, in which case they will appear as ‘deferral’.

he points obtained through work are valid for the two calls of the year, unless the student has stated otherwise. In the latter case, the final test will be assessed on a maximum of 10 points (see previous section).



The extraordinary call will consist of a written test as described above.



To waive the extraordinary call, it will suffice to not appear at it.

Notes on "Management of financial entities" available at the school's reprography service and/or in the eGela virtual classroom.

Basic bibliography

BASIC TEXTBOOK:

KOCH, TIMOTHY W. & MACDONALD, S. SCOTT (2009): Bank Management; Cengage

learning, London.

In-depth bibliography

OTHER REFERENCES:
BERGER, ALLEN N.; MOLYNEUX, PHILIP & WILSON, JOHN O.S (2014): The Oxford
handbook of banking; Oxford University Press, Oxford U.K.
BESSIS, JOËL (2010): Risk management in banking; John Wiley and sons ltd.; Chichester, UK.
KUMAR, R (2014): Strategies of Banks and other Financial Institutions. Academic Press,
Elesvier, Oxford, U.K.
MATTHEWS, K. Y THOMPSON, J. (2014): The Economics of Banking. 3rd Edition, Wiley,
U.k.
MOORAD, CHOUDRY (2011): An introduction to banking: liquidity risk and asset-liability
management; John Wiley and sons ltd.; Chichester, UK.
SKINNER, CHRIS (2014): Digital bank: strategies to launch or become a digital bank; Marshall
Cavendish, Singapore.

Journals

-• http://www.emeraldgrouppublishing.com/products/journals/journals.htm?id=ijbm
• International journal of Bank marketing:
• International Journal of Banking, Accounting and Finance:
www.inderscience.com/jhome.php?jcode=ijbaaf
• International Journal of Central Banking: www.ijcb.org
• Journal of Banking & Finance: www.journals.elsevier.com/journal-of-banking-andfinance
• Journal of Money, Credit and Banking: https://jmcb.osu.edu
• Journal of Money, Investment and Banking:
www.journalofmoneyinvestmentandbanking.com

Web addresses

WEBSITES:
• BANK (WIKIPEDIA): http://en.wikipedia.org/wiki/Bank
• BANK FINANCIAL STATEMENTS:
http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
• BANK FOR INTERNATIONAL SETTLEMENTS: http://www.bis.org/
• BASELL COMITEE (BIS): http://www.bis.org/bcbs/
• EUROPEAN BANKING AUTHORITY (EBA): http://www.eba.europa.eu/
• EUROPEAN CENTRAL BANK:
http://www.ecb.europa.eu/ecb/orga/escb/html/index.en.html
• FINANCIAL INTERMEDIARIES:
http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
• HOW TO RUN A BANK: http://www.thebanker.com/How-To-Run-A-Bank

- United Nations Environment Programme Finance Initiative (UNEP FI): https://www.unepfi.org/about/
UNEP Finance Initiative. (2022).
- Principles for Responsible Banking. Guidance Document: Reporting on the Principles for Responsible Banking. 2020. https://www.unepfi.org/publications/principles-for-responsible-banking-guidance-document/
- Principles for Responsible Investment: https://www.unpri.org/