2206-Banking-2425_S2

Topic outline

• 

  General

  Banking

  This course is devoted to the management and regulation of banking firms.

  It aims to help students to understand the main strategic issues in retail banking and the risks and regulations faced by the industry.

  Particular emphasis are made on customer-focused banking, integrated risk management, interest rate risk, market risk, capital allocation, value-based measurement, credit risk and its pricing.

  Target audience: participants with strong interest in banking, financial risk management and business consultancy.

  Moodle enrolment key: banking2025
  

  • Course Announcements Forum
  • case-study allocation File
  • case study presentations 2025 Folder
  • case study Assignment
  • exam Assignment
  • final Assignment
  • Participation grade Assignment
  • Request exam review Choice
• 

  Overview of Banking

  1.1 What is a bank?

  1.2 Why there are banks?

  1.3 Banking functions

  1.4 Bank financial statements

  Case: ING Direct, A growing Success Story

  • FT JPMorgan Chase and Wells Fargo braced for sharp rise in credit losses 14Apr2020 File
  • FT Spanish lender Santander boosts capital position 29Jan2020 File
  • FT US banks release billions from reserves in anticipation of lower Covid losses 15Jan2021 File
  • GS annual-report-2020 File
  • Santander rt-3T-2021-presentacion-resultados-en File
  • FT US regional banks hope for profit revival as pain from SVB fallout eases 29Jan2024 File
  • ECB FinancialStabilityReview 2023 File
  • BANKING Session1 Overview of Banking 2025 File
  • FT Eurozone bank shares poised for best year-end since 2010 30Dec2024 File
• 

  Banking in context

  2.1 Money

  2.2 Short History

  2.3 How the system works

  • ING Direct, A Growing Success Story URL
  • ING Direct, A growing Success Story Assignment
  • FT Fed opens debate over possible digital currency 22Jan2022 File
  • FT Facebook’s Libra currency to launch next year in limited format 27Nov2020 File
  • FT Central banks ‘hesitant’ on digital currencies, says former governor 5Feb2020 File
  • FED money-and-payments-20220120 File
  • FT The main objection to digital currencies is misguided 27Jan2022 File
  • ECB Report on a digital euro Oct2020 File
  • BIS Carstens Central Banks and the Soul of Money Jan2022 File
  • EurParliament DigitalEuro PolicyImplicationsAndPerspectives Jan2022 File
  • ECB A stocktake on the digital euro Oct2023 File
  • FT Are banks really magic money trees 20Nov2019 File
  • FT Letter ECB’s cautious approach to digital currencies is the right one 2Nov2023 File
  • BANKING Session2 Banking in context 2025 File
  • Digital Euro TerezaCavaco 20250210 NovaSBE.1.2025 File
• This topic
  

  Solvency and Liquidity

  3.1 Solvency

  3.2 Liquidity

  3.3 Market makers on liquidity

  3.4 Liquidity risk and management

  • Bitcoin 2023 - Keep "Hodling" URL
  • Bitcoin 2023 - Keep "Hodling" Assignment
  • FT Nouriel Roubini bitcoin is not a hedge against tail risk 10Feb2021 File
  • FT The environmental idiocy of Tesla’s bitcoin bet 14Feb2021 File
  • FT ‘Digital tulip’ or new asset class Bitcoin’s bid to go mainstream 12Feb2021 File
  • FT Metro panic shows need for more proactive regulation 13May2019 File
  • FT Tesla sends bitcoin to record high with $1.5bn investment 8Feb2021 File
  • FT Musk says Tesla no longer plans to accept payment in bitcoin 13May2021 File
  • FT Year in a word Crypto winter 28Dec2022 File
  • FT ‘Sam Are you there !’ The bizarre and brutal final hours of FTX 9Feb2023 File
  • FT Crypto is back with $300bn frenzy 3Feb2023 File
  • FT History can instruct us on the fallout from SVB’s collapse 13March2023 File
  • FT Wake up to the dangers of digital bank runs 20April2023 File
  • FT The $42bn bank run that sunk Silicon Valley Bank 11March2023 File
  • BANKING Session3 Solvency Liquidity 2025 File
  • FT Can Trump make bitcoin useful 12Feb2025 File
  • McKinsey deposits-the-top-profitability-lever-for-retail-banks-ceos-v2 Feb2025 File
  • FT UK uncovers vast crypto laundering scheme for gangsters and Russian spies 4Dec2024 File
• 

  Strategy

  4.1 Product versus Client oriented

  4.2 Bank Mergers and Acquisitions

  4.3 Bancassurance

  4.4 Capital

  4.5 Determinants of Value

  • The end of Credit Suisse URL
  • The end of Credit Suisse Assignment
  • BANKING Session4 Strategy Practical exercise File
  • BANKING Session4 Strategy - 2025 File
  • Rauva Deck - innovation in Europe File
• 

  Risk in Banking

  5.1 Risk and Uncertainty

  5.2 Banking Risks

  5.3 Asset and liability management (ALM)

  5.4 ALCO

  • ING Bank: Facing Digital Disruption URL
  • ING Bank: Facing Digital Disruption Assignment
  • FT Argentina imposes currency controls 1SEPT2019 File
  • FT ‘Humbling’ week in bond markets leads to fears of paradigm shift 26FEB2021 File
  • FT Greek bank Alpha offloads €10.8bn bad loan book to Davidson Kempner 22FEB2021 File
  • FT Lloyds warns profitability to fall as low interest rates take toll 20FEB2020 File
  • FT Brussels seeks to help banks offload rising tide of bad loans 29NOV2020 File
  • FT Revlon error forces Citigroup to slash profits by $323m 27FEB2021 File
  • FT The eight men who will decide the future of German banking 14MAR2019 File
  • FT ‘Humbling’ week in bond markets leads to fears of paradigm shift 26FEB2021 File
  • FT European banks promise €120bn of shareholder returns on interest rate gains 26Feb2024 File
  • FT Stock market crashes lessons from history 20MAR2020 File
  • FT US stocks jump as Treasury yields retreat from recent highs 3Mar2023 File
  • BANKING Session5 Risk in Banking - 2025 File
  • FT Crédit Agricole lifts stake in Italy’s Banco BPM in blow to UniCredit bid 6Dec2024 File
  • FT Javier Milei’s quest to defuse Argentina’s currency control bomb 6Feb2025 File
  • FT Banco BPM rejects UniCredit takeover bid 26Nov2024 File
  • FT Citigroup erroneously credited client account with $81tn in ‘near miss’ 20250228 File
  • FT Olaf Scholz says Germany opposes a Commerzbank takeover 23Sept2024 File
  • FT Could Italy’s UniCredit reignite European banking 9Oct2024 File
• 

  Measuring and Managing Risks

  6.1 Market Risks

  6.2 Introduction to value at risk (VaR)

  6.3 Stress Tests

  
  

  • Goldman Sachs and the Big Short: Time to go Long? URL
  • Goldman Sachs and the Big Short Assignment
  • BANKING Session6 Measuring ManagingRisks - 2025 File
• 

  Credit Risk

  7.1 PD, LGD, EAD

  7.2 Pricing credit risk

  7.3 Credit risk assessment

  7.4 Hedging

  
  

  • FT Credit Suisse executives ‘overruled’ risk managers on $160m loan to Greensill 11Mar2021 File
  • NYT Greensill Capital The Collapse of a Company Built on Debt 28Mar2021 File
  • FT How Credit Suisse rolled the dice on risk management — and lost 20Apr2021 File
  • BANKING Session7 Credit Risk - 2025 File
  • Deutsche-Bank-Q4-FY-2024-Presentation File
  • FT Deutsche Bank clashed with ECB over bad loan losses 3Mar2025 File
  • AUSENDA PIRES Nova SBE - Banking - Credit Risk Models 2025 File
• 

  Interest Rate Risk

  8.1 Maturity gap

  8.2 Duration Gap

  8.3 Swaps and Forwards

  • Risk Management at Wellfleet Bank: All That Glitters Is Not Gold URL
  • Risk Management at Wellfleet Bank: All That Glitters Is Not Gold Assignment
  • EBA-GL-2015-08 GL on the management of interest rate risk File
  • FT How rising interest rates are exposing bank weaknesses 30March2023 File
  • FT Silicon Valley Bank profit squeeze in tech downturn attracts short sellers 22March2023 File
  • FT How crazy was Silicon Valley Bank’s zero-hedge strategy 17March2023 File
  • FT With the collapse of Silicon Valley Bank, tech may lose a vital organ 11March2023 File
  • FT - Investors dump US bank shares amid fears over value of bond portfolios 9March2023 File
  • FT Lloyds Bank axes risk staff after executives complain they are a ‘blocker’ 10April2024 File
  • BANKING Session8 Interest Rate risk - 2025 File
• 

  Operational risk

  9.1 People and Technology

  9.2 Frequency and Severity

  9.3 Risk Tolerance Matrix

  • Banc One Corp.: Asset and Liability Management URL
  • Banc One Corp.: Asset and Liability Management, Spreadsheet Supplement URL
  • Banc One Asset and Liability Management Assignment
  • FT Goldman Sachs sued over work on $2.9bn grocery deal 31Jan2019 File
  • FT Santander Orcel no we cannot 16Jan2019 File
  • FT Morgan Stanley discloses twin probes into big stock transactions 25Fev2022 File
  • FT TSB swings into red in first half following IT debacle 27Jul2018 File
  • FT Danske anatomy of a money laundering scandal 19Dec2018 File
  • FT Banks under fire from parliament after IT outages at TSB and Ulster Bank 24Apr2018 File
  • FT Best of Money hacking into your account is easier than you think 4Nov2016 File
  • FT Bank of America set to settle mortgages case for $16bn-plus 6Aug2014 File
  • José Manuel Campa s speech at the ICA’s XVII International Conference on Good Corporate Governance File
  • FT Potential €50m bill forces Santander U-turn on Orcel 15Jan2019 File
  • FT Another pay drama starring Andrea Orcel 28Fev2023 File
  • FT All charges dropped against Danske Bank chiefs 29Apr21 File
  • FT Danske Bank to pay $2bn penalty for defrauding US banks 13Dec2022 File
  • McKinsey creating-a-technology-and-cyber-risk-appetite-framework Feb2023 File
  • BANKING Session9 OperationalRisk - 2025 File
  • FT What is behind the Treasury sell-off 9April2025 File
  • FT Citigroup erroneously credited client account with $81tn in ‘near miss’ 20250228 File
• 

  Bank Crisis

  10.1 Bubbles and Busts

  10.2 Contagion

  10.3 Deposit Insurance and Lender of Last Resort

  10.4 Bank Resolution

  • The Wells Fargo Banking Scandal URL
  • The Wells Fargo Banking Scandal Assignment
  • FT Portugal agrees €2.2bn Banif bailout, 2nd in 18 months 21Dec2015 File
  • FT ECB supervisor defends role in Italian banking crisis 4Jul2017 File
  • FT Banco Espírito Santo split in €4.9bn rescue 4Aug2014 File
  • EU Bank Recovery and Resolution Directive BRRD Frequently Asked Questions File
  • FT Why Santander rescue of Banco Popular is a European test case 7Jun2017 File
  • FT JPMorgan succession rekindles US debate over ‘imperial’ CEOs 13April2022 File
  • FT A very Swiss bank rescue 20March2023 File
  • FT SVB, resolved 28March2023 File
  • FT Credit Suisse the rise and fall of the bank that built modern Switzerland 24Mar2023 File
  • BANKING Session10 Bank crisis - 2025 File
• 

  Regulation

  11.1 Why regulate banks

  11.2 Different regulations

  11.3 Basel Accords

  • Barclays Bank, 2008 URL
  • Barclays Bank, 2008 Assignment
  • FT ECB offers banks more leeway to clean up pandemic-hit balance sheets 16March2021 File
  • FT ECB pushes for eurozone bad bank to clean up soured loans 19April2020 File
  • FT Credit Suisse investors sue Swiss regulator over bond wipeout 21April2023 File
  • BANKING Session11 Regulation - 2025 File
  • ssm.supervisory priorities202412~6f69ad032f.en File
  • Nuno Ferreira - 20250505 GBAR 2024 Aula Nova File
• 

  The Future of Banking

  12.1 New trends

  12.2 Technology

  12.3 The Banking Union

  • Deutsche Bank and the Road to Basel III URL
  • Deutsche Bank and the Road to Basel III Assignment
  • BANKING Session12 Future of Banking Wrap-up - 2025 DRAFT File