COURSE INFORMATION
Course Title: ALBANIAN BANKING SYSTEM AND CENTRAL BANKING
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 505 D 3 3 0 0 3 7.5
Lecturer and Office Hours: Bledar Hoda Tuesday 21.00 - 22.00
Second Lecturer(s): NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Elective
Classroom and Meeting Time: Tuesday
Course Description: The course starts with describing the role of the financial system in a market economy, discussing the main types of institutions, markets, players, products and the legal framework of Albanian financial system. It delves into the specific role of Central Bank in Albania, focusing on its independence, monetary policy and supervision cores. In-depth analysis is further provided on the main drivers and key challenges encountered along the way by the Albanian commercial banks, emphasizing the current regulation, technological and product innovations as well as bank-customer relationship. Finally, the implications of the recent global financial crisis in Albania’s banking sector are highlighted in the last session. The course will use several real-life case studies drawn up from the Albanian experience to provide particular insights on currents issues and illustrate the weekly topics, in the form of lessons from experience.
Course Objectives: The course aims to provide students with the fundamentals of banking in Albania and equip them with necessary theoretical and practical competencies to enable them perform effectively a job as bankers in a commercial or central bank setting. The students should be able to understand the importance of maintaining financial stability for sustainable development of the economy.
COURSE OUTLINE
Week Topics
1 Introduction
2 Financial system Development and Economic Growth: Theoretical Background
3 Understanding Financial System in Albania: Balance Sheet of (Commercial) Banks
4 Understanding Financial System: Balance Sheet of Central Bank Liabilities
5 Understanding Financial System: Balance Sheet of Central Bank: Assets
6 Understanding Financial System: Balance Sheet of Central Bank: CHANGES in Bal.Sheet
7 Monetary Instruments of CB & Review
8 Mid-Term Exam
9 Banking Supervision: Basel I and II criteria
10 Banking Supervision: Basel I and II criteria
11 Understanding of Basel III criteria
12 Understanding of Basel III criteria
13 Understanding of Basel & Central Bank Independence
14 Summary of Basel framework
Prerequisite(s): -
Textbook: Written lectures, slides in Power Point format and other handouts distributed at the end of each session, as well as all mandatory literature in the form of articles, Bank of Albania’s annual/quarter publications, reports, conference materials, etc.
Other References: Publications by other Central Banks
Laboratory Work: -
Computer Usage: -
Others: No
COURSE LEARNING OUTCOMES
1 Learning about the types of institutions, markets, players, products and the legal framework of the Albanian financial system.
2 Understanding the importance of maintaining financial stability for sustained development of the economy
3 Getting to know the role and importance of Central Bank, its monetary policy and the main instruments adopted by Bank of Albania
4 Introducing students to the philosophy and principles of effective banking supervision so that to pave the way for the need of an effective infrastructure for banking supervision in respect of the legal and regulatory environment
5 Gaining exposure to the areas of high risk in bank operations and the application of riskbased approach from BoA’s supervisors to identify emerging problems.
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(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. 3
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. 3
5 They have ability to use mathematical and statistical methods in banking and finance. 3
6 They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department. 3
7 They have necessary banking and finance skills that needed in private and public sector. 3
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. 3
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
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
10
Presentation
1
10
Project
1
20
Final Exam
1
50
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
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 14 14
Assignments 0
Final examination 1 15 15
Other 5 5 25
Total Work Load:
150
Total Work Load/25(h):
6
ECTS Credit of the Course:
7.5