COURSE INFORMATION Course Title: PRINCIPLES OF BANKING

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 108	B	2	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Chrysanthi Balomenou cbalomenou@epoka.edu.al , Wednesday 11:00-12:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time:	E/B32 8:45-11:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	A minimum rate of 60% is required for the student to enter the final examination.
Course Description:	This course provides students major terms and issues of concern in the Banking Industry. It includes a comprehensive survey of capital markets, the asset and liability process, bank corporate governance, funding and risk management.
Course Objectives:	The course objectives are as follows: describe how ignorance of the principles of money and banking has injured the lives of everyday people; describe how understanding the principles of money and banking has enhanced the lives of everyday people; explain how bankers can simultaneously be entrepreneurs and lend to entrepreneurs.

BASIC CONCEPTS OF THE COURSE

1	Money, Banking, and the Functions of Financial Markets
2	The Role of Money in the Macroeconomy
3	International economic policy and foreign exchange markets
4	Central banking
5	Functions of the financial system
6	Asymmetric information
7	Regulatory framework of international banking
8	Foreign Exchange
9	Financial Markets and Institutions
10	Money Laundering

COURSE OUTLINE

Week	Topics
1	Introduction of the syllabus, academic writing rules and discussion on the indicative project topics. More specifically we are going to analyze the key parts of the syllabus and afterwards we will be based on the way that we are going to proceed with the elaboration of the team working projects. In order the students to be facilitated more, during this introductory lecture it will be presented some indicative topics or in a broader way reliable scientific areas of the examining field, which could be chosen purely by the students or they can be based on them in order to form their own topic.
2	Introducing Money, Banking, and Financial Markets – In this chapter the importance of money, banking and financial markets will be highlighted. Moreover, some possible careers that use skills and knowledge gained through studying this will be presented (pg. 7-15; 42-63).
3	The functions of the Financial System - Asymmetric Information – In this lecture the functions of financial systems will be explained thoroughly. After, the asymmetric information will be analyzed together with the changes in the financial system (pg. 16-41).
4	International Economic Policy and Foreign Exchange Markets – In this section firstly an explanation will be made for exchange rates and cross rates accordingly. Later, the balance of payments together with its components will be highlighted (pg. 534-547).
5	Optimum Currency Areas (1st part) – In this lecture the rates will be explained (fixed and floating) together with key features of each of them. Then, the PPP (Purchasing Power Parity) will be analyzed in detail. Lastly, some international policy guidelines will be presented (pg. 450-469; pg. 681-720).
6	Revision. We are recapping all the already taught subjects, by pinpointing the highlights of them concentrating on those that are needing, due to their nature, more attention in terms of critical analysis and combination of different reliable topics.
7	Midterm Exam
8	Presentation of group projects. The students divided into groups composed of 3-5 members are presenting, using power point system, their teamworking projects, that have been previously submitted to their professor. Each team member is presenting his/hers's own contribution part of the project presentation.
9	Optimum Currency Areas (2nd part) – In this chapter the monetary policy in the Euro system will be highlighted including target policy and target inflation as well. Afterwards, the open market operations in the ECB will be discussed (pg. 340-353).
10	Understanding financial contacts (1st part) – In this chapter we are aiming to do the following: differentiate among the different mechanisms of external financing of firms, explain why mechanisms of external financing depend upon firm size, understand how financial contracts may reduce the adverse selection and moral hazard problems of asymmetric information (pg. 151-176).
11	Understanding financial contracts (2nd part) - In this chapter we are aiming to do the following: differentiate among the different mechanisms of external financing of firms, explain why mechanisms of external financing depend upon firm size, understand how financial contracts may reduce the adverse selection and moral hazard problems of asymmetric information (pg. 151-176).
12	Principles of the Regulatory Framework of International Banking – In this lecture the main objectives are as follows: to highlight the importance of the main changes observed on the Banking System Internationally, from 1933, i.e. just after the global economic crisis of 1929 -1933 till 2010 (i.e. after the beginning of the current global financial crisis in USA (2007) till the end of the first phase of it) (The Economics of Money, Banking, and Financial Markets, Mishkin, 2016, p. 84-91 and p.274, 275).
13	Revision. We are summing up all the already taught subjects, by pinpointing the highlights of them concentrating on those that are needing, due to their nature, more attention in terms of critical analysis and combination of different reliable topics.
14	Final Exam

Prerequisite(s):	NA
Textbook(s):	Principles of money, banking and financial systems, Edward T. Merkel (2009)Finance , Banking and Money, v.2,2012
Additional Literature:	The principles of banking, Moorad Choudhry (2012)Principles of banking law, 3rd edition, Ross Cranston, Emilios Avgouleas, Kristin van Zwieten, Christopher Hare, Theodor van Sante and Teaching Notes and Power Points, prepared by the Lecturer of the Course Dr. Chrysanthi Balomenou
Laboratory Work:	NA
Computer Usage:	NA
Others:	No

COURSE LEARNING OUTCOMES

1	Gaining knowledge about the role of money banking and financial markets in the economy.
2	Understanding how to measure interest rates and how they behave
3	Exploring money and capital markets
4	Analyzing foreign exchange focusing on fluctuations in exchange rates
5	Presenting and explaining the main features and importance of Central Banking.
6	Explaining the asymmetric information problems and ways of overcoming the problem.
7	Providing a full knowledge and understanding of regulatory framework of International Banking as far as of the regulation of Markets and Institutions.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	4
2	They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	5
3	They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.	4
4	They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.	2
5	They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.	5
6	They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.	2
7	They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.	3
8	They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.	3
9	They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.	4
10	They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Term Paper	1	20
Final Exam	1	40
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	4	64
Hours for off-the-classroom study (Pre-study, practice)	10	2	20
Mid-terms	1	10	10
Assignments	1	12	12
Final examination	1	14	14
Other	1	5	5
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

They are going to be updated through the semester.