The main aim of this course is to give students an understanding and current knowledge of international banking. It allows students to understand the operating environments of international banking institutions, more specifically, how to best manage the environment to create sustained value for shareholders. Basel Capital Accords provide the regulatory framework for banks that are active in the international markets and reference is made to this throughout the course. Topics covered in this course include examining the role of international banks in international investment and trade, project financing and managing cross border risks.
The unifying theme in this course is the application of modern finance theory to the financial decision making and management of financial institutions of commercial banks. The subject of decision-making in financial institutions is approached from a risk perspective. The course covers the major decision areas for financial institution management within the framework of a regulatory and “corporate responsible” environment. The main topics covered are various financial risks and their management including interest rate risk, credit risk, liquidity risk, foreign exchange risk and market risk within an international context.