International Banking

The goal of studying this subject is to familiarize students with key aspects of international banking, its subjects and factors of development, international financial and development institutions, and the risk factors in business and models of management and protection, as well as the basics and importance of regulation in the international banking operations.

A student is qualified for successful integration into all aspects of international banking operations both in practical and research terms. The student is capable, in a certain role, to control successfully the potential risks in the field of international banking and to respond effectively in order to achieve profit and to protect against the risk by applying modern methods of management of the bank that operates on an international level in the field of generally accepted regulatory framework and control mechanisms. The student acquires a clear theoretical basis necessary for successful monitoring of contemporary international financial flows and is capable to successfully participate in international research projects, employment and further training in the field of international banking.

Forms of international capital movements; The possibility of obtaining funds from foreign accumulation; International global political, economic and regulatory environment; Characteristics of modern global banking and financial markets; International financial and development institutions (concept, list of institutions, characteristics, importance); The European Monetary System with the European Central Bank; Internal and external factors of influence on the development of international banking (universalization and concentration in the banking industry, internationalization and globalization); International correspondent banks and correspondent relations; The organizational forms of authorized banks in the financial market; International banking operations; The foreign exchange market, transactions and foreign exchange rates; The basics of foreign exchange operations of banks; Interventions by central banks in the foreign exchange market; International payment systems; The instruments of international payments and payment security; Export financing; Operations of the international forfaiting and international factoring; International leasing; Forms of appearance of banks in the international banking market (fusion, acquisition and other forms of concentration); International standards of supervision of the banking and financial sector in the international banking; Basics of European regulations; The consequences of deregulation in terms of competition, financial innovations and increase of moral hazard; Risks in international banking operations, management models and hedging instruments.

Lectures by eminent local and visiting professors, discussions and case studies, preparation and defense of the pre-exam papers and consultations.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Bašić, D. (2012). Modern Banking. Banja Luka: University of Banja Luka, Faculty of Economics; Bjelica, V. (2001). Banking. Novi Sad: Stylos; Mishkin, F. S. (2010). The Economics of Money, Banking, and Financial Markets. VIII edition. Zagreb: Mate; Plakalović, N.; Alihodžić, А. (2013). Contemporary Financial Management: application in MS Excel. Belgrade: Institute of Economic Sciences; Rose, S. P; Hudgins, C. S. (2005). Bank Management and Financial Services. Belgrade: Data Status; Čenić Jotanović, G. (2010). International Economic Relations, Banja Luka: Faculty of Economics.