Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 411 B 1 3 0 0 3 7.5
Lecturer and Office Hours: Chrysanthi Balomenou Wednesday 10:30 - 13:30pm
Second Lecturer(s): NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Compulsory
Classroom and Meeting Time: E110 on Tuesday 18:00 - 20:45pm
Course Description: Background and issues, financial markets and instruments, how securities are traded, investors and the investment process, risk and return: past and prologue, efficient diversification, capital asset pricing and arbitrage pricing theory, bond prices and yields, equity valuation, options, futures.
Course Objectives: The aim of this Course is to help the student understand the banking financing, portfolio theory as well as the risk management process of the banking portfolios. Also to provide the knowledge that is necessary in the field of Banking Risk Management and Quantitative Methods to those that work or are going to work as risk officers in banking and financial services in order to be able to reach successfully their goal in measuring and forecasting the volatility of assets and the management of their risks. Another objective of this Thematic Subject is to help the students understand the way in which basic concepts and techniques of Financial Management and Banking Strategies are implemented on Bank Management. In parallel, this course aims to offer specialized knowledge required for Bank System Modernization, and the improvement of banking methods and procedures for organizations and businesses. Furthermore, subjects of crucial importance like the Capitalization and recapitalization of the Banks in Europe and in a broader International level, mainly during and after crisis periods and their impact on the financial stability is going to be analyzing as well. The goals of this course will be achieved with the help of lectures, case studies, problems, and other teaching techniques. Moreover, all the above mentioned will be closely, systematically and critically examined in the framework of the conventional and unconventional policies of the Central Banking mainly in Europe and USA, during crisis periods as far as the exiting strategies from the unconventional policies that are started to be implemented, mainly by ECB and FED, revealing obstacles etc. In addition it will be critically analyzed the crucial importance hot topic of Brexit, in terms of its impact on the Financial Services and Banking collaboration between EU and UK.
Week Topics
1 Introduction of Syllabus, Key rules of Academic writing and Money and Capital Markets, Introduction to the Financial System,Moral Hazard in Banking Activities.
2 Dilemma of Financial Stability vs Monetary Stability, Rules vs Authorities and Introduction to ECB QE
3 The FED’s Quantitative Easing (Q.E.):comparison analysis with the ECB’s Q.E. Current and previous aspects
4 The ECB’s Quantitative Easing (Q.E.):comparison analysis with the ECB’s Q.E. Current and previous aspects
5 ECB’s vs. FED’s Strategies on Exiting unconventional Monetary Policies, obstacles etc.
6 ECB vs FED exiting unconventional policies (Part 2) and the role of capitalization_recapitalization of the Banks
7 Taylor's Rule (Theory and it's implementation in cases of exiting the unconventional policies
8 Midterm exams (Individual Projects Presentations)
9 Individual Projects Presentations continue
10 The legislation of EBU (Enriched version, in terms of taking into consideration the hot topic of Brexit and its potential impact on the EU _ UK relationship in the Domain of Financial Services and Mainly Banking collaboration.
11 Group Projects Presentations
12 Interest rates and bond prices. Sources of risk
13 Efficient portfolios and technical analysis
14 First and second week presentation of individual common projects instead of written final exam
Prerequisite(s): NA
Textbook: -Textbook: Frank.K.Reilly., Keith.C.Brown.,Investment Analysis and Portfolio Management, Europe, Middle East and Africa Edition, 2012, Cengage. Learning Other References: Lectures prepared by the Lecturer, Vasiliou, D., & Iriotis, N, “Investment Analysis and Portfolio Management”, 2009, Rosili Editions and other relevant articles of the field. "Financial Markets, Banking and Monetary Policy" by Thomas D. Simpson, 2014. In addition a research entitled "Potential Concepts for the Future EU-UK Relationship in Financial Services" from the ECON committee of the European Parliament (January 2017).
Other References: NA
Laboratory Work: NA
Computer Usage: NA
Others: No
1 Evaluate different investment projects under certainty and risk.
2 Estimate the expected cash flows of an investment project and calculate the firm's cost of capital.
3 Use, interpret and evaluate the most important methods that are used in capital budgeting analysis and Propose the asset - liability management that financial institutions should employ driven by estimated interest rate changes.
4 Examine and analyze the different strategies that CB apply to regulate the different portfolio management.
5 Compare the different strategies and debate accordingly.
6 Identify recruitment practices for firms and organizations, as well as the theoretical approaches that underlie and shape those practices.
7 Discuss critically the commercial banks' recapitalization need.
8 Analyze the theoretical background on how to choose the best portfolios.
9 Describe the different recapitalization programs and define the arising differences and results in Europe, USA and Japan.
10 Describe the hot topic of Brexit and critically investigate and pinpoint the potential impact of it on Money and Capital Markets in EU and UK. on
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
MSc BAF Program
1 The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way. 5
2 They have knowledge about the finance and banking. 4
3 They have knowledge about the money and banking. 4
4 They have knowledge about the international finance and banking. 5
5 They have ability to use mathematical and statistical methods in banking and finance.
6 They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department. 5
7 They have necessary banking and finance skills that needed in private and public sector. 5
8 They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking. 5
9 They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance. 3
10 They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics. 3
Method Quantity Percentage
Midterm Exam(s)
Term Paper
Final Exam
Total Percent: 100%
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 3 48
Mid-terms 1 25 25
Assignments 1 16.5 16.5
Final examination 1 30 30
Other 1 20 20
Total Work Load:
Total Work Load/25(h):
ECTS Credit of the Course: