Course requirements
Master degree in Law. This course is part of the Advanced Master Law and Finance.
More information: https://www.universiteitleiden.nl/en/education/study-programmes/master/law-and-finance
Course information
This foundation course focusses on the financial reports of banks. Taking a seminar approach and using a selection of case studies and texts, the course will explore developments in the banking industry and banking regulations since the 2008 financial crisis. Special attention will be given to European banks. Using the audited financial statements of selected banks, we will analyze the combined impact on bank financial performance of increasing regulatory requirements, coupled with competitive dynamics and technological innovations that are transforming the market for traditional banking services.
Course learning objectives
Upon successful completion of the course, students are able to:
Identify the characteristics of banks that distinguish them from other firms;
Explain the basic regulatory requirements imposed on banks by the Basel Committee on Banking Supervision and critically discuss the inherent tension that exists between ensuring stability of the financial system and the ability of banks to perform their basic transformation functions;
Recognize how regulatory capital and liquidity requirements imposed on banks are reflected in their financial reporting requirements;
Calculate and interpret key regulatory ratios and key financial performance ratios for banks;
Describe the ways in which increasing regulatory requirements imposed on banks, coupled with competitive industry dynamics, are putting pressure on the profitability of the traditional bank business models.
Mode of instruction
Seminars
Number of (2 hour) seminars: 10
Name of lecturer: Dr. Nancy Edwards
Required preparation by students: reading of prescribed materials, preparation of case studies and any other assignments.
Course Load
Seminars: 102 hours: 20 hours
Preperation for seminars and exam: 117 hours
Exam: 3 hours
Total: 140 hours
Examination method
Weekly assignments (group): 40%;
Final exam (individual): 60%;
The final grade, on the scale from 1(poor) to 10 (outstanding), for the course is established by determining the weighted average of the weekly group assignments and the individually-written final exam rounded to full grades. Grade 6 (5.5 rounded) is a pass.
Prior to each class meeting, a detailed assignment will be provided in advance explaining the preparatory activities that need to be completed in order to gain the full benefit of the related class meeting. When relevant, a description of and due date for a deliverable will be indicated.
Final exam:
The final exam will cover all the material discussed during the seminars.
Further information about the weekly assignments and the exam will be communicated to students through Blackboard at the start of the course.
Course materials
J. Armour, D. Awrey, P. Davies, L. Enriques, J.N. Gordon, C. Mayer, and J. Payne, Principles of Financial Regulation, Oxford, Oxford University Press 2016
Course reader with the relevant weekly assignment (available in hard copy with the programme coordinator).
Contact
Course Coordinator:
dr. N. E. Edwards, MSc
Work address: Steenschuur 25, Leiden;
Contact information after an appointment with the Secretariat 071 – 527 7851;
E-mail: n.r.edwards@law.leidenuniv.nl
Institute/Department
Institute: Institute of Tax Law and Economics
Department: Business Studies
Address secretariat: Steenschuur 25, Leiden (B2.26);
Office hours: Monday, Tuesday, Thursday and Friday between 9 o’clock and 5 o’clock;
Telephone number secretariat: 071 – 527 7851;
E-mail: bedrijfswetenschappen@law.leidenuniv.nl
Programme Coordinator:
Ms. Orsolya Kalsbeek-Bagdi
Email address: lawandfinance@law.leidenuniv.nl