FIN809 Financial Sector Transformation

School of Business Administration in Karvina
Summer 2012
Extent and Intensity
0/2/0. 4 credit(s). Type of Completion: zk (examination).
Guaranteed by
Ing. Pavlína Haltofová, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
The goal of the course is to explain basic features of financial sector transformation in Central European countries. It covers topics such as the conception of money and functions of money in a market economy, the position and role of financial institutions, financial instruments and financial markets in a market economy. The specific topics cover mergers and acquisitions in banking sector, competition and concentration in financial sector and influence of voucher privatisation on financial sector. Privatisation of banking sector will be covered, too. The course considers specific conditions of the Czech Republic, Slovakia, Poland and Hungary during transition into a market economy in the light of recent changes in European Union, respectively European Monetary Union.
Syllabus (in Czech)
  • Topics covered:
    1. Financial system
    Financial system as a complex of financial instruments, financial markets and financial intermediaries. Lenders and borrowers. Transition of savings into investments. The financial system and the real economy.
    2. Money and financial system
    The definition of money. Controlling the money supply. Demand for money. Money market equilibrium. The transmission mechanism of monetary policy. Governments, inflationary incentives and central bank´s independence.
    3. Financial and banking sector structure
    Financial and banking sector structure: theory and practise. Growing number of banks during transition process. Small and large banks. Competition in banking sector.
    4. Mergers and acquisitions in banking sector
    Banks, branches, and offices. Mergers and creation of value. Bank mergers and acquisition strategies. Reasons/hypotheses for bank mergers. The nature of the acquisition premium. Regulatory concerns: safety, stability, and structure.
    5. Privatisation of banking sector
    The initial economic environment for privatisation. The restructuring of property rights. Forms of privatisation. Large privatisation: theory and practise. The role of banks and nonbanking financial institutions in privatisation. Banks privatisation in transition countries.

Literature
    required literature
  • Various readings from The Economist, The Banker etc. info
  • POLOUČEK, S. Reforming the Financial Sector in Central European Countries. Houndmills, Basingstoke, Hampshire: Palgrave Mac, 2004. ISBN 1-4039-1546-6. info
    recommended literature
  • SAUNDERS, A., CORNETT, MM. Financial Markets and Institutions. A Modern Perspective. Boston etc.: McGraw-Hill Irwin, 2001. ISBN 0-07-234892-5. info
  • DECUETO, C., HAJEK, L., ET, AL. Politics and Economics in the Czech Transition. Hradec Králové: Gaudeamus, 2000. ISBN 80-7041-232-1. info
  • BONIN, JP., MIZSEI, K., SZÉKELY, IP., WACHTEL, P. Banking in Transition Economies. Developing Market Oriented Banking Sectors in Eastern Europe. Cheltenham, UK, Northampton, MA, USA: Edward Elg, 1998. ISBN 1 85898 604 4. info
  • SINKEY, JF. Commercial Bank Financial Management. Prentice Hall, 1998. ISBN 0-13-521048-8. info
  • MULLINEUX, AW., GREEN, CHJ. Economic Performance and Financial Sector Reform in Central and Eastern Europe. Capital Flows, Bank and Enterprise Restructuring. Cheltenham, UK, Northampton, MA, USA: Edward Elg, 1998. ISBN 1 85898 806 3. info
  • MADURA, J. The Privatization Process in East-Central Europe. International Studies in Economics and Econometrics. Dordrecht-Boston-London: Kluwer Academic Publish, 1997. ISBN 0-7923-4096-. info
  • FABOZZI, FJ., MODIGLIANI, F., FERRI, MG. Foundations of Financial Markets and Institutions. London etc.: Prentice-Hall, 1994. ISBN 0-13-328980-X. info
  • Madura, J. Financial Markets and Institutions. Saint Paul etc., West Publishing Company, 1992. ISBN 0-314-87735-5. info
Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Winter 2007, Summer 2008, Summer 2009, Summer 2010, Summer 2011.
  • Enrolment Statistics (recent)
  • Permalink: https://is.slu.cz/course/opf/summer2012/FIN809