International Banking

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

The students are trained for successful integration into all aspects of international banking operations, both in practical and research terms. The students are capable to, in a certain role, successfully control the potential risks in the field of international banking and to respond effectively in order to achieve profit or 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 students acquire a clear theoretical basis necessary for successful monitoring of contemporary international financial flows and they are trained to successfully participate in international research projects, employment and further specialization in the field of international banking.

Forms of international capital movements; Possibilities of fund-raising from the foreign accumulation; International global political, economic and regulatory environment; Characteristics of modern global banking and financial markets; International financial and development institutions (concept, review of institutions, characteristics, importance); 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 banking relationships; Organizational forms of authorized banks in the financial market; International banking business; Foreign exchange market, transactions and foreign exchange rates; Basics of foreign exchange operations of banks; Interventions by central banks in the foreign exchange market; International payment systems, instruments of international payments and payment security; Export financing; Activities of the international forfaiting and international factoring; International leasing; Types of banks appearance 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; Consequences of deregulation in terms of competition, financial innovation and increase of moral hazard; Risks in international banking business, management models and hedging instruments.

Lectures of eminent local and visiting professors, discussions and analyses of 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: Faculty of Economics, University of Banja Luka; Bjelica, V. (2001). Banking. Novi Sad: Stylos; Mishkin, F. S. (2010). 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). Banking Management and Financial Services. Belgrade: Data Status. Čenić Jotanović, G. (2010). International economic relations, Banja Luka: Faculty of Economics, University of Banja Luka.