Monetary Economics and Modern Banking

The goal of studying this subject is to familiarize students with contemporary international monetary system, its subjects, development and coordination mechanisms dominated by modern banking. It is very important to become familiar with the transmission mechanism of monetary policy and the role of central banks in the changed financial environment. Continuous monitoring of modern changes and trends in the field of banking, development and implementation of models of banking risk management, banking assets and interest rates is a precondition for the stability and success of any modern banking system. The unavoidable segment is the risk management of the banking portfolio, particularly non-performing loan portfolio as the key cause of banking crises, and special attention will be given to their causes, consequences and mechanisms of solving. In the context of the above, the key issue of regulation in the banking industry will be discussed, especially with respect to the effects of application of Basel III standards. One of the key aspects of modern banking is a question of concentration in the banking industry, so it is important to devote particular attention in terms of effects and consequences, i.e. impact on the performance of business operations of complex forms of banking and overall financial system stability.

Student is qualified to successfully follow contemporary changes and trends in the international monetary system and banking systems. The student is able to successfully control potential risks associated with modern banking and respond effectively with the aim of successful management of banking systems in the global international environment by using modern management methods in the field of general regulatory framework and control mechanisms. The student gets a clear theoretical basis necessary for the successful monitoring of the modern international financial flows and trends in the banking industry and is able to successfully engage in domestic and international research projects and to draw adequate conclusions on the phenomena of the relevant area as a precondition for successful treatment and the defense of the set doctoral thesis.

International monetary system. International finance and monetary policy. Central banking and monetary policy implementation. Financial institutions. Economic analysis of the financial structure. Basics of modern banking and strategies and models of financial institutions management. Model of optimal portfolio structure. Structure of the banking sector and competition. Economic analysis and aspects of the regulation and supervision of banks. Mechanisms of banking crises management. Concentration in the banking industry: practice, effects and factors of the impact on the stability of the monetary system. Effect of financial markets. Understanding interest rates. Behavior of interest rates. Risk and term structure of interest rates, theory of rational expectations and efficient market hypothesis.

Lectures, study-research work, discussions and case studies.

Study research pre-exam paper and taking final oral exam.

1. Plakalović, N.; Alihodžić A. (2013). Contemporary Financial Management: application in MS Excel. Belgrade: Institute of Economic Sciences. 2. Bašić, D. (2012). Modern Banking. Banja Luka: Faculty of Economics, University of Banja Luka 3. Živkovic, A. and Kožetinac, G. (2012). Monetary Economics. Belgrade: Faculty of Economics 4. Mishkin, F. S. (2010). Economics of Money, Banking and Financial Markets, 8th Edition. Zagreb: Mate. 5. Mishkin, F. S. (2006). Monetary Economics, Banking and Financial Markets. 7th Edition. Belgrade: Data status.