Programme Structure for 2025/2026
| Curricular Courses | Credits | |
|---|---|---|
| 1st Year | ||
|
Economics of Banking
6.0 ECTS
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Market Risk Management
6.0 ECTS
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Financial Regulation Law
6.0 ECTS
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Bank Accounting
6.0 ECTS
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Risk and Regulation of Financial Institutions
6.0 ECTS
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Macroeconomics and Systemic Risk
6.0 ECTS
|
||
|
Banking Regulation and Supervision
6.0 ECTS
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Financial Assets and Markets
6.0 ECTS
|
||
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Behavioural Economics and the Regulation of Financial Markets and Institutions
6.0 ECTS
|
||
|
Industrial Dynamics and Capital Markets
6.0 ECTS
|
Economics of Banking
OA1. Knowledge and comprehension of the main characteristics of the banking system in the contemporaneous world, namely at the level of diversity of banking institutions, products and services supplied by banks and trends in banking business
OA2. Knowledge and identify the characteristics of the main financial documents of banks in order to assess their economic and financial performance
OA3. Identify the main challenges faced by banks, in a contex of increasing innovation, competitiveness and regulation
1. Banks and Financial Intermediation
2. Types of Banking
3. Banking Products and Services
4. Innovation and Trends in Banking Business
5. Governance of Risks in Banks
6. Economics of Banking and Financial Analysis
7. Banking Competition and Financial Stability
The students assessment uses the types of exams (frequência and exame) and evaluation dates (1.ª época and 2ª época) in ISCTEs regulations.
The periodic evaluation has a weight of 50% for the frequency and a weight of 50% for group work, and the frequency grade cannot be less than 9.5 values.
In the evaluation in the final examination, the exam has a weight of 100%.
Casu, Barbara; Claudia Girardone; and Philip Molyneux. 2015. Introduction to Banking. 2nd Edition. Pearson Education Limited
Smith, Roy C.; and Ingo Walter. 2003. Global Banking. 2nd Edition. Oxford University Press
Matthews, Kent; and John Thompson. 2005. The Economics of Banking. John Wiley & Sons, Ltd.
Howells, Peter; and Keith Bain. 2005. The Economics of Money, Banking and Finance. A European Text. 3rd Edition. Pearson Education Limited
Mishkin, Frederic S. 2010. The Economics of Money, Banking & Financial Markets. 9th Edition. Addison-Wesley
Choudhry, Moorad. 2011. An Introduction to Banking. Principles, Strategy and Risk Management. 2nd Edition. John Wiley & Sons, Ltd.
Market Risk Management
1. Learn how to use different analytic tools to analyze the market risk of a portfolio of financial instruments.
2. Know the regulatory framework applicable to financial institutions and the management of their risks.
1. Financial Risk Management
(a) Introduction
(b) Measurement of return, risk, and correlations
(c) Distribution of risk
(d) Risk modelling and validation
2. Risk of Different Assets
(a) Equity and portfolios
(b) Interest rate
(c) Liquidity risk
3. Derivative Financial Products
(a) Risk management with derivatives
(b) Linear derivatives: Futures and Forwards
(c) Swaps
(d) Non-linear derivatives: Options
4. Value at Risk (VaR)
(a) Parametric VaR
(b) Historical simulation
(c) VaR of portfolios
(d) Alternative measures to VaR
5. Regulatory Framework
(a) Standardized Approach
(b) Internal Models Approach
Continuous evaluation consisting of a group assignment (40%) and final exam (60%), or only final exam (100%).
BibliographyAlexander, Carol, Market Risk Analysis Vol IV: Value at Risk Models, 2009, Wiley,
Hull, John, Risk Management and Financial Institutions, 2023, 6th edition, Wiley,
Alexander, Carol, Market Risk Analysis Vol III: Value Pricing, Hedging and Trading Financial Instruments, 2008, Wiley,
Basel Committee on Banking Supervision, Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework, 2006 (https://www.bis.org/publ/bcbs128.htm)
Basel Committee on Banking Supervision, Basel III: Finanlising post-crisis reforms, 2017 (https://www.bis.org/bcbs/publ/d424.htm)
Basel Committee on Banking Supervision, High-level summary of Basel III reforms, 2017 (https://www.bis.org/bcbs/publ/d424_hlsummary.pdf)
Bank Accounting
LO1 - To understand the scope of the banking activity;
LO2 - To understand the structure of the main financial statements in bank sector institutions and other financial companies;
LO3 - To record the impact of the main banking operations on those financial statements;
LO4 - To evaluate the impact of banking operations on the performance and in the maintenance of the supervisory regulatory requirements.
1. Introduction
1.1.Scope of banking activity;
1.2. Control activities and regulatory requirements.
2. Financial reporting;
2.1. Accounting standards;
2.2. Financial statements;
2.3. Banking transactions;
3. Banking transactions and performance
3.1. Capital key indicators;
3.2. Profitability key performance indicators;
3.3. Other activity indicators.
The process of assessment of knowledge covers the following assessment methods:
1) Assessment throughout the semester;
2) Assessment by exam.
The method mentiond in 1) integrates a Mid.term test (with a weighting of 40% in the final grade) and a Final Test (with a weighting of 60% in the final grade). In both testes, the minimum mark is 7,5 points (in a 20 scle points).
The method "Assessment by exam" occurs exclusively during the assessment period and covers all the material taught in the curricular unit. It will be ensured throughout a written test, with a weighting of 100% in the final grade.
Banco de Portugal, RGICSF - Regime Geral das Instituições de Crédito e Sociedades Financeiras (Decreto-Lei n.º 298/92, de 31 de dezembro)., 1992.
Caiado, A. C., (2019). Bancos: Normativos, contabilidade e gestão, 2ª Edição, Lisboa: Edições Sílabo.
González, A. F. S; Pascual, J. L. (2015). Economia e Gestão Bancária, Universidade Católica Portuguesa.
Lopes, I. T. (2020). Controlo de Gestão: Uma Visão Integrada do Desempenho Empresarial, 2ª Edição, Coimbra: Edições Almedina., https://www.almedina.net/controlo-de-gest-o-1603142523.html
Risk and Regulation of Financial Institutions
LO1. Knowledge of the activities of the various FIs and the markets in which banks operate.
LO2. Capacity to assess quantitatively and qualitatively the risks of FI and of the banking system.
1. Classification of financial institutions
2. Financial markets and banks
3. Introduction to the main risks and interest rate risk
4. Credit Risk
5. FInancial analysis and risk of banks
6. Loans sales and securitisation
Students can choose between:
Assessment throughout the semester: Test 60%+ Team work 40%
Evaluation in final exam: 100% of the exam grade.
Saunders, Anthony and Cornett, Marcia (2021), Financial Institutions Management: A Risk Management Approach, 10.ª edição, McGraw-Hill.
Armour, John, Awrey, Dan, Davies, Paul, Enriques, Luca, Gordon, Jeffrey N., Mayer, Colin, and Payne, Jennifer (2016), Principles of Financial Regulation, Oxford University Press.
Basel Committee on Banking Supervision (2011), Basel III: A global regulatory framework for more resilient banks and banking systems, Bank for International Settlements.
Basel Committee on Banking Supervision (2017), Basel III: Finalising post-crisis reforms, Bank for International Settlements.
Bessis, Joel (2010), Risk Management in Banking, 3th Edition, John Wiley & Sons.
Brunnermeier, Markus, Crockett, Andrew, Goodhart, Charles, Persaud, Avi, and Hyun Shin (2009). The Fundamental Principles of Financial Regulation, 11th Geneva Report on the World Economy, Geneva.
European Central Bank (2011). The Monetary Policy of the ECB, ECB
Fabozzi, Frank J. (2012), Bond Markets: Analysis and Strategies, Prentice Hall, 8th edition.
Foo, C.-T. (2008), ?Conceptual lessons on financial strategy following the US sub-prime crisis?, The Journal of Risk Finance, 9: 3, pp. 292-302.
Golub, B. W. and Crum, C. C. (2010), ?Risk Management Lessons Worth Remembering from the Credit Crisis of 2007-2009?, The Journal of Portfolio Management, 21-44.
Hull, John (2012), Risk Management and Financial Institutions, Prentice Hall, 3th edition.
Lang, W. W., Jagtiani, J. A. (2010), ?The mortgage and financial crises: The role of credit risk management and corporate governance?, Atlantic Economic Journal, 38, pp. 295-316.
Leão, E., Leão, P. and Lagoa, S. (2011), Política Monetária e Mercados Financeiros, Edições Sílabo, 2.ª Edição.
Matthews, Kent; and John Thompson (2005), The Economics of Banking, John Wiley & Sons, Ltd.
Mishkin, F. S., Matthews, K. and Giuliodori, M. (2013). The Economics of Money, Banking and Financial Markets, European Edition, Pearson.
Walsh, C. (2017), Monetary Theory and Policy, 4th edition, MIT Press.
Macroeconomics and Systemic Risk
LG1 - Know the main stylized facts of business cycles
LG2 - Understand the main aspects of the "New Keynesian Model"
LG3 - Understand the limitations of the models
1. Business cycles regularities
2. Goods market equilibrium
3. The Central bank and the monetary policy rule
4. Inflation, unemployment, and aggregate supply
5. Macroeconomic equilibrium
6. Conventional and unconventional monetary policy in the AD-AS model
7. Fiscal policy in the AD-AS model
8. Financial crises
The student can choose between two of the following options
Evaluation throughout the semester:
1. Midterm test: 50% of the final grade
2. Final test: 50% of the final grade
Final grade = [0 , 20], approval granted if the final grade is >= 10.
Final Exam:
Final grade = [0 , 20], approval granted if the final grade is >= 10.
Sørensen, P. B. and Whitta-Jacobsen, H. J. (2010). Introducing Advanced Macroeconomics: Growth and Business Cycles, 2 ed., McGraw-Hill, New York.
Burda, , M., & Wyplosz, C. (2017). Macroeconomics: a European text. 7th Edition, Oxford University Press.
Mishkin, F. S.(2014), Macroeconomics: Policy and Practice, 2nd Edition, Pearson, Addison-Wesley, New York.
Banking Regulation and Supervision
The main goals associated with this course are related to the development of the following skills:
- (LO1) Advanced knowledge related to the impact of financial development on economic growth
- (LO2) Advanced knowledge of the general principles and models of banking regulation
- (LO3) Advanced knowledge of BASEL III as a regulatory response to the Global Financial Crisis
- (LO4) Knowledge of the main regulatory financial agencies and their interconnectedness
- (LO5) Knowledge and understanding of the main advantages and limitations of financial regulation
The abridged course syllabus is the following:
-(P1) Financial development and economic growth. The State?s financial policy and the role of public banks
-(P2) Multiple forms of institutional arrangements associated with financial regulation
-(P3) Overall evolution of financial regulation (emphasis on banking regulation) in Europe
-(P4) BASEL III as a response to the Global Financial Crisis
-(P5) The importance of the Banking Union
-(P6) Coordination among regulatory agencies
-(P7) Excessive regulation and regulatory arbitrage, and the onset of un-regulated banking sectors (e.g., as ?shadow banking industries?)
The course evaluation comprises:
- Written examinations (70%) and
- Group essay writing assignment (30%)
- Moosa, I.A., 2015. Good Regulation, Bad Regulation ? The Anatomy of Financial Regulation. U.S.A.: Palgrave Macmillan.
- Leão, E., Lagoa, S., and Leão, P., 2012. Política Monetária e Mercados Financeiros. Portugal: Edições Sílabo.
- Casu, B, Girardone, C., and Molyneux, P., 2015. Introduction to Banking. Second edition. United Kingdom: Pearson Education Limited.
- Cargill, T.F., 2017. The Financial System, Financial Regulation and Central Bank Policy. United Kingdom: Cambridge University Press.
- Busch, A., 2009. Banking Regulation and Globalization. U.K.: Oxford University Press.
- Boccuzzi, G., 2016. The European Banking Union ? Supervision and Resolution. U.K.: Palgrave Macmillan.
- Allen, F., and Carletti, E., 2012. The Roles of Banks in Financial Systems. In: Allen N. Berger, Philip Molyneux, and John O.S. Wilson, eds. The Oxford Handbook of Banking. Second edition. United Kingdom: Oxford University Press, pp. 27-46.
- Mishkin, F.S., 2015. The Economics of Money, Banking, and Financial Markets. Eleventh edition. England: Pearson Education Limited.
Financial Assets and Markets
This course has the following learning goals (LG):
LO 1- Knowledge and understanding of the functioning of the bonds market, stock market, housing market, and financial derivatives market;
LO 2 - Knowledge and understanding of the main principles of assets management and of the equilibrium in financial markets;
LO 3 - Ability to compute the fundamental value of bonds, shares, housing assets, and financial derivatives;
LO 4 - Ability to study and perform research with autonomy.
1. Introduction to financial markets and institutions
2. Management of assets portfolios
3. Equilibrium models of the capital markets
4. Valuing shares
5. Monetary policy and financial markets
6. Valuing bonds
7. Financial derivatives
8. Real estate market
Students can choose between:
Assessment throughout the semester: Group Work (40%) and Frequency (60%).
Assessment by exam: the weighting of the exam is 100%.
Bodie, Z., Kane, A., Marcus, A. (2023), Investments, 13th Edition, Mc-GrawHill/Irwin
Damodaran, A. (2012), Investment Valuation: tools and techniques for determining the value of any asset, 3rd edition, Wiley Finance.
Leão, E., Leão, P. and Lagoa, S. (2023). Política Monetária e Mercados Financeiros. 4ª edição, Edições Sílabo.
Leão, E, Barradas, R. (2023), Mercados Financeiros: Emoção e Razão, Edições Sílabo.
Bailey, R. E. (2005). The Economics of Financial Markets. Oxford University Press.
Huang, C. and Litzenberger, R. (1988). Foundations for Financial Economics, Prentice Hall.
Mishkin, F. S., Matthews, K. and Giuliodori, M. (2013). The Economics of Money, Banking and Financial Markets. EUROPEAN EDITION. 1st edition, Pearson.
Mishkin, F. S., Eakins, S. (2018), Financial markets and institutions, 9th edition, Pearson
Behavioural Economics and the Regulation of Financial Markets and Institutions
The main goals associated with this course are related to the development of the following skills:
- (LO1) Recognise and analyse the ?anomalous? patterns of behaviour with economic relevance in the functioning of financial markets.
- (LO2) Evaluate institutional solutions in terms of regulation to the overcoming of individual decision and collective action problems through the appliance of behavioural theories.
- (LO3) Knowledge and understanding of the main general principles associated with the regulation of financial market participants in a post-crisis environment
- (LO4) Knowledge and understanding of banking regulations
- (LO5) Knowledge and understanding of the main advantages and limitations of financial regulation
The abridged course syllabus is the following:
- (P1) Bounded Rationality and the Critique of the Behavioural Presuppositions of the Model of Rational Choice.
- (P2) Heuristics and Behavioural ?Anomalies? in the Individual Decision Making
- (P3) Applications of the behavioral perspective to public policies and regulation in the case of financial markets.
- (P4) General principles of financial regulation
- (P5) The Global Financial Crisis as a disruptive systemic event for the financial markets and the global banking industry
- (P6) The need for banking regulation in a post-crisis environment
The course evaluation comprises:
- individual written examination (50%)
- group work (50%)
The score of the individual written examination must be at least 8 points.
- Shiller, Robert J. 2000. Irrational Exuberance, Princeton, New Jersey: Princeton University Press.
- Mishkin, F.S., 2015. The Economics of Money, Banking, and Financial Markets. Eleventh edition. England: Pearson Education Limited.
- Kahneman, Daniel 2012. Thinking, fast and slow, London: Penguin.
- Casu, B, Girardone, C., and Molyneux, P., 2015. Introduction to Banking. Second edition. United Kingdom: Pearson Education Limited.
- Allen, F., and Carletti, E., 2012. The Roles of Banks in Financial Systems. In: Allen N. Berger, Philip Molyneux, and John O.S. Wilson, eds. The Oxford Handbook of Banking. Second edition. United Kingdom: Oxford University Press, pp. 27-46.
- Saunders, A., and Cornett, M.M., 2014. Financial Institutions Management: A Risk Management Approach. Sixth edition. United States of America: McGraw-Hill Higher Education.
- Hull, J.C., 2015. Risk Management and Financial Institutions. Fourth edition. United States of America: John Wiley & Sons, Inc.
- Lourenço, J.S.; Ciriolo, E.; Almeida, S.R. e Troussard, X. (2016) Behavioural Insights Applied to Policy: European Report 2016, Bruxelas, Comissão Europeia.
- Loewenstein, George; Prelec, Drazen (1992), ?Anomalies: Intertemporal Choice. Evidence and an Interpretation?, The Quarterly Journal of Economics, 107(2), 573-597.
- Leão, E., Lagoa, S., and Leão, P., 2012. Política Monetária e Mercados Financeiros. Portugal: Edições Sílabo.
- Laibson, David (1997), ?Golden Eggs and Hyperbolic Discounting?, The Quarterly Journal of Economics, 112: 443-477.
- Benartzi, Shlomo e Thaler, Richard H. (2013), ?Behavioral economics and the retirement savings crisis?, Science 339: 1152?1153.
- Benartzi, Shlomo e Thaler, Richard H. (2007), ?Heuristics and Biases in Retirement Savings Behavior?, Journal of Economic Perspectives, 21 (Summer), pp. 81?104;
Industrial Dynamics and Capital Markets
1. Knowledge and comprehension of how competition and firms' strategies affects firms' performance in a given sector.
2. Capacity to determine the quantitative and qualitative impact of changes in competition and firms' strategies on firms' performance in a given sector, and be able to make proposals about the desirable financing structure of firms.
3. Capacity to evaluate the level of competition of a given sector
4. Capacity to make arguments and justify them from a theoretical and empirical point of view, and be able to communicate them.
1. From the industry to the market: measures of concentration
2. Competition and competitive advantage
3. Analysing the industry: an integration of models of analysis
4. Competition law and regulation
5. Firms´ boundaries and goals
5.1. Productive efficiency
5.2. Vertical integration
5.3. Product diversification
5.4. Incentives and agency
5.5. Mergers and acquisitions
6. Industries, the business cycle and the stock market
7. Analysis of key industries of the Portuguese and European economy
Assessment Throughout the Semester:
Test: 60%
Group Work (Presentation and Discussion): 40%
Approval requires an average equal to or higher than 9,5 points
Assessment Through Exam:
Exam (First Season) Exam (Second Season): 100%
Approval requires a grade equal to or higher than 9,5 points
Dranove, D.; Besanko, D.; Shanley, M.; e Schaefer, S. (2017). Economics of Strategy. 7th Edition. New York: Wiley.
Bodie, Z.; Kane, A.; e Marcus, A. J. (2018). Investments. 11th Edition. New York: Mc-GrawHill.
Leão, E.; e Barradas, R. (2023). Mercados Financeiros - Emoção e Razão. Lisboa: Edições Sílabo.
Textos de Apoio (a disponibilizar pela equipa docente)
Banco de Portugal. (2010). "Estrutura e Dinâmica das Sociedades não Financeiras em Portugal". Estudos da Central de Balanços. Dezembro.
Caraça, J.; Lundvall, B. A.; e Mendonça, S. (2009). "The Changing Role of Science in the Innovation Process: From Queen to Cinderella?". Technological Forecasting and Social Change. 76: 861-867.
Carlton, D. W.; and Perloff, J. M. (2004). Modern Industrial Organization. Fourth Edition. Pearson
Klepper, S. (1997). "Industry Life Cycles". Industrial and Corporate Change. 6 (1): 145-81.
Malerba, F. (2006). "Sectoral Systems: How and Why Innovation Differs Across Sectors". The Oxford Handbook of Innovation, Oxford University Press.
Mata, J. (2012). Economia da Empresa. Fundação Calouste Gulbenkian.
Leão, P. (2011). Economia dos Mercados e da Empresa. Escolar Editora.
Relatórios Sectoriais da Economist Intelligence Unit.