Concordia University

John Molson School of Business

FINA 482/4A
International Banking: Operations, Policy and Strategy
Winter 2021
2021/01/13 - 2021/04/20
3 credits
Instructor: Gaoussou Diarra, PhD. Email: gaoussou.diarra@concordia.ca
Office Hours: By appointment Lecture Hours: Thursdays 11:45 – 14:30
Online/Remote Delivery (via Zoom and Moodle)
Please write FINA482 at the start of subject line and use only your Concordia email.

Course Outline

1. COURSE DESCRIPTION
This course provides students with an integrating framework to understand the risks, challenges,
and opportunities that banks face in their global operations. The course covers both commercial
and investment banking activities in mature as well as emerging markets. The course begins with
an examination of opportunities that foreign markets offer as well as difficulties that banks face
when dealing with unfamiliar economic and political environments abroad. This is followed by a
discussion of banking operations in international and foreign markets. Topics for this discussion
may include microfinance, international loans, project financing and an assessment of political or
sovereign risks. The impact of foreign operations on mitigation or enhancement of various risks
associated with home country operations is examined. The course also examines the importance
of global regulation as well as governance and ethical issues associated with international banking.

2. OBJECTIVES

1. Understand the opportunities and difficulties that banks face in foreign markets
2. Have a fair knowledge of various banking operations in international and foreign markets:
3. Be able to critically analyze the impact of foreign banking operations on home country
operations in terms of risks and profitability.
4. Understand the role and importance of global regulation, governance and ethical issues for
international banking.
5. Write and present a critical policy report on a specific international banking topic for selected
countries in different continents using international databases.

FINA 482/4A Winter 2021, G. DIARRA, PhD

3. GRADING

Grade items Date % of grade

1. Participation: 11 short quizzes (3 to 5 multiple Weekly, starting Jan 10

choices questions during the class time but the exact time 28th
will fluctuate and will be given to students attending at the
beginning of each lecture. To be done on Moodle, 10
minutes, 1 mark per quiz, the 10 best grades will be kept)
2. Three (3) online home quizzes (based on the Feb 25th , 30
weekly lectures). Multiple choice questions to be submitted Mar 25th , Apr 8th
on Moodle, 60 minutes, the 2 best grades will be kept) between 3:00 pm and
11:59 pm
3. Teamwork (max 15 pages report + Final Report due on 30
presentation), 2 students per team. (Note that you Mar 8, by 11:59 pm,
have right to write your assignment in French). See the list Presentation Mar 11
of the 10 topics to be considered. Maximum 2 teams per to April 8
topic.
4. Individual assignment based on data extraction Final report Due Apr 30
and analysis (max 10 pages report), starting on Jan 28th
and 12th before 11:59 pm
due by Apr 12th . (Note that you have right to write your
assignment in French).
5. (Bonus, non-mandatory) Peer assessment The peer assessment 5
(your capacity to evaluate and discuss in class the report of report is due at least 1
another team), submit a report (1 page) and 5 minutes day prior the date of
discussion during the class presentation. You will receive the team’s
the paper to be assessed on Mar 9th and you must submit presentation (Mar 11th
your assessment report at least 1 day prior the date of the to Apr 8th ).
presentation. A guideline will be provided.
Total 100

Letter Grades and Numerical Scores

Letter Score Letter Score Letter Score Letter Score
A+ 90 – 100 B+ 77 – 79 C+ 67 – 69 D+ 57 – 59
A 85 – 89 B 73 – 76 C 63 – 66 D 53 – 56
A- 80 – 84 B- 70 – 72 C- 60 – 62 D- 50 – 52
FNS < 50
* D- is the minimum requirement to pass the course.

4. SCHEDULE (may be subject to change)

Lectures schedule
Week Dates Topics Important
events
1 Jan. 14 Presentation of the course outline
1.The environment of international banking: introduction

FINA 482/4A Winter 2021, G. DIARRA, PhD

 1.1. Banking vs international banking
1.2. The opportunities and difficulties that banks face in
foreign markets
1.3. Main banking operations in international and foreign
markets

Suggested readings
2 Jan. 21 1.The environment of international banking (continued)
1.4. Balance of payments
1.5. Financial markets (money, bond, equity/stocks, FX,
derivatives…)

Suggested readings
(R2012) chap 1 to 6
3 Jan. 28 2. The international banking system
2.1. Typology of banks (central banks, private, public,
commercial, investment, multinational, multilateral,
development, international financial institutions or Bretton
Woods institutions)
2.2. the competition and interactions between the different
actors

Suggested readings
(R2012)- chap 7 to 11, 17. (LF2015 p 3-169)
4 Feb 4 3. The international banking regulation
3.1. The rationale of banking regulation
3.2. Domestic regulators (central banks and government)
3.3. International regulators (BIS, IMF)

Suggested readings
(R2012, chap 15) (LF2013 p 3-79)
5 Feb. 4. International banking operations, policies and
11 strategies

Suggested readings
(R2012, Chap 16, 17) (LF2013 p 82-196)
6 Feb. 5. International banking and risk management
18
Suggested readings
(R2012, Chap 13, 14) (LF2013 p 200-246)
7 Feb. 6. The international banking databases (BIS, IMF, World Quiz 1
25 Bank, FRED, FED, OECD, Bank of Canada, OSFI, Bank
Focus, BEA, Statistics Canada, Yahoo Finance…)

Suggested readings
8 Mar 4 Reading week, no class Team report
due Mar 8
9 Mar. 7. Selected topics on international banking Team
11 A1. The international banking, financial and debt crises presentation:
A2. International banking and COVID-19 Topics A

FINA 482/4A Winter 2021, G. DIARRA, PhD

 Suggested readings
A1. (IFR2017-18), (IFR2013-14), (IFR2010-11), (HH2013),
OECD (2011)
A2. IMF 1 and 2, BoC (1 and 3)
10 Mar. B1. Ranking international banks, merging and acquisitions, Team
18 competition, Brexit presentation:
B2. Regulation and supervision system: Money laundering, tax Topics B
avoidance, offshoring, in-house scandals.

Suggested readings
B1. (R2012, chap 7, 17)
B2.
11 Mar. C1. Canada versus USA Quiz 2
25 C2. Emerging countries Team
presentation:
Suggested readings Topics C
C1. (LF2020) (HH2013), CDIC 1 and 2, BoC (1 and 2)
C2. (IFR2020-21), (IFR2016-17), (IJFB2020-4)
12 Apr 1 D1. Africa Team
D2. Islamic banking presentation:
Topics D
Suggested readings
D1. BIS-2, BIS-3
D2. (IFR2019-19)
13 Apr. E1. Crypto currencies, CBDCs, Fintech, shadow banking Quiz 3
8 E2. New players in International banking: GAFA versus BATX Team
presentation:
Suggested readings Topics E
E1. (IFR2019-20)
E2.
14 Apr. Make-up presentations, opened discussions and wrap up Individual
15 home
assignment due:
Apr 12th

5. COURSE MATERIALS

Required readings and textbooks

No required textbook and readings
Suggested readings (non-mandatory, but I will use them to build my weekly lectures, and
students could also use them for their individual and teamwork assignments)

1. (LF2013)-Lessambo, F. (2013) The international banking system: capital adequacy, core

businesses and risk management. https://link-springer-com.lib-ezproxy.concordia.ca/book/10.1007%2F978-1-
137-27513-4
2. (R2012)-Roy et al. (2012) Global Banking https://oxford-universitypressscholarship-com.lib-
ezproxy.concordia.ca/view/10.1093/acprof:oso/9780195335934.001.0001/acprof-9780195335934

FINA 482/4A Winter 2021, G. DIARRA, PhD

 3. (LF2020)-Lessambo, F. (2020) The U.S. Banking System: Laws, Regulations, and Risk
Management https://link-springer-com.lib-ezproxy.concordia.ca/book/10.1007%2F978-3-
030-34792-5
4. (LF2015)-Lessambo, F. (2015) International financial institutions and their challenges : a
global guide for future methods https://link-springer-com.lib-
ezproxy.concordia.ca/book/10.1057%2F9781137522702
5. (IFR2020-21) Emerging Market Finance: New Challenges and Opportunities, International
Finance Review, Volume 21, 2020 https://www-emerald-com.lib-
ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767202021

• Chapter 2: Do Foreign Bank Branches Affect Lending of Foreign- and State-owned Banks? Empirical Evidence from CESEE
Countries
• Chapter 5: Chinese Banks in Russia: Market Expansion Strategies and New Opportunities
• Chapter 7: Spillover Effects of Global MonetaRy Shocks on Foreign Banks: Evidence from an Emerging Economy

6. (IFR2019-20) Disruptive Innovation in Business and Finance in the Digital World,

International Finance Review, Volume 20, 2019 https://www-emerald-com.lib-
ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767201920

• Chapter 2: Trends in Financial Innovation: Evidence from Fintech Firms

• Chapter 8: Blockchain Finance: Questions Regulators Ask
• Chapter 9: Research on Blockchain: A Descriptive Survey of the Literature
• Chapter 10: Is Bitcoin Trustworthy?
• Chapter 11: The Future of Cryptotokens

7. (IFR2019-19) Management of Islamic Finance: Principle, Practice, and Performance,

International Finance Review, Volume 19, 2019 https://www-emerald-com.lib-
ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767201819

• Chapter 2 Islamic Banks’ Resilience to Systemic Risks: Myth or Reality-Evidence from Bangladesh
• Chapter 3 Satisfaction with Islamic Microcredit Institutions: A Borrower-centric Approach
• Chapter 6 Relevance of Development Financial Institutions in the presence of Islamic Financial Institutions
• Chapter 10 Determinants of Customers’ Engagement with Islamic Banking

8. (IFR2017-18) Economic Imbalances and Institutional Changes to the Euro and the
European Union, International Finance Review, Volume 18, 2017 https://www-emerald-
com.lib-ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767201718

• Quantitative Easing in the Eurozone

• EU-Banking Union – Expectations, Deficiencies, and Criticisms
• Are They All the Same? Banking and Financial Crises in Debt-Ridden Euroarea Countries
• Sovereign Debt Crisis: Euro-Reality

9. (IFR2016-17) The Political Economy of Chinese Finance International Finance

Review Volume 17, 2016 https://www-emerald-com.lib-
ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767201617

• Bank Internationalisation: An Examination of the Role of Government and Home Institutions in Emerging Economies

10. (IFR2013-14) Global Banking, Financial Markets and Crises, International Finance
Review, Volume 14, (2013) https://www-emerald-com.lib-
ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-3767%282013%2914

• Recent cross-border banking within Europe: International balance sheet perspectives

FINA 482/4A Winter 2021, G. DIARRA, PhD

 • Foreign Banks, monetary policy, and crises: Evidence from bank-level panel data in asia
• Super-size banks: Is risk-taking rewarding?
• What determines bank productivity? International evidence on the impact of banking competition, bank regulation, and the global
financial crisis
• Financial integration and foreign banks in Latin America: How do they impact the transmission of external financial shocks?

11. (IFR2010-11) International Banking in the New Era: Post-Crisis Challenges and
Opportunities, International Finance Review, Volume 11, (2010) https://www-
emerald-com.lib-ezproxy.concordia.ca/insight/publication/doi/10.1108/S1569-
3767%282010%2911

• The subprime mortgage crises: how the market was failed and manipulated
• Bankers and scapegoats
• The global financial crisis: Causes, effects and issues to consider in the reform of financial regulation
• Reforming international standards for bank capital requirements: A perspective from the developing world
• Banks, ABS's and CDS's: Information production, risk bearing, and incentive compatibility
• The economic determinants and behavior of foreign banks in emerging countries during a period of global economic downturn
• Does distance affect the performance of foreign banks? Evidence from multinational banking in developing countries

12. (IJFB2020-4) International Journal of Finance & Banking Studies, Vol 9 No 4, 2020
http://www.ssbfnet.com/ojs/index.php/ijfbs/index
13. (HH2013)-Hardie and Howarth (2013) Market-Based Banking and the International
Financial Crisis https://oxford-universitypressscholarship-com.lib-
ezproxy.concordia.ca/view/10.1093/acprof:oso/9780199662289.001.0001/acprof-
9780199662289?rskey=4Zu8kY&result=1
14. Bank of Canada (BoC)
• (BoC-1) Monetary Policy Report – October 2020 https://www.bankofcanada.ca/wp-
content/uploads/2020/10/mpr-2020-10-28.pdf
• (BoC-2) Financial System Review—2020, The impact of COVID‑19 on the Canadian
financial system https://www.bankofcanada.ca/2020/05/financial-system-review-
2020/#Introduction
15. International Monetary Fund - IMF
• IMF-1: Global Financial Stability Report: Bridge to Recovery, October 2020, Chapter 3,
Chapter 4, https://www.imf.org/en/Publications/GFSR/Issues/2020/10/13/global-
financial-stability-report-october-2020
• IMF-2: Global Financial Stability Report: Markets in the Time of COVID-19 April 2020,
Chapter 2, Chapter 4,
https://www.imf.org/en/Publications/GFSR/Issues/2020/04/14/global-financial-
stability-report-april-2020
16. Bank of International Settlements- BIS
• BIS-1- Financial market development, monetary policy and financial stability in emerging
market economies. BIS Papers | No 113 | 15 December 2020.
https://www.bis.org/publ/bppdf/bispap113.pdf
• BIS-2-Foreign exchange reserves in Africa: benefits, costs and political economy
considerations https://www.bis.org/publ/bppdf/bispap105.pdf
• BIS-3-Central banks and debt: emerging risks to the effectiveness of monetary policy in
Africa? https://www.bis.org/publ/bppdf/bispap99.pdf

FINA 482/4A Winter 2021, G. DIARRA, PhD

 6. EHAVIOUR

All individuals participating in courses are expected to be professional and constructive throughout
the course, including in their communications. Concordia students are subject to the Code of
Rights and Responsibilities which applies both when students are physically and virtually engaged
in any University activity, including classes, seminars, meetings, etc. Students engaged in University
activities must respect this Code when engaging with any members of the Concordia community,
including faculty, staff, and students, whether such interactions are verbal or in writing, face to face
or online/virtual. Failing to comply with the Code may result in charges and sanctions, as outlined
in the Code.

7. Intellectual Property (IP)

Content belonging to instructors shared in online courses, including, but not limited to, online
lectures, course notes, and video recordings of classes remain the intellectual property of the faculty
member. It may not be distributed, published or broadcast, in whole or in part, without the express
permission of the faculty member. Students are also forbidden to use their own means of recording
any elements of an online class or lecture without express permission of the instructor. Any
unauthorized sharing of course content may constitute a breach of the Academic Code of Conduct
and/or the Code of Rights and Responsibilities. As specified in the Policy on Intellectual Property,
the University does not claim any ownership of or interest in any student IP. All university members
retain copyright over their work.

8. EXTRAORDINARY CIRCUMSTANCES

In the event of extraordinary circumstances and pursuant to the Academic Regulations, the
University may modify the delivery, content, structure, forum, location and/or evaluation scheme.
In the event of such extraordinary circumstances, students will be informed of the changes.

9. ETHICAL BEHAVIOUR

Plagiarism:
The most common offense under the Academic Code of Conduct is plagiarism, which the Code
defines as “the presentation of the work of another person as one’s own or without proper
acknowledgement.” This includes material copied word for word from books, journals, Internet
sites, professor’s course notes, etc. It refers to material that is paraphrased but closely resembles
the original source. It also includes for example the work of a fellow student, an answer on a quiz,
data for a lab report, a paper or assignment completed by another student.
It might be a paper purchased from any source. Plagiarism does not refer to words alone –it can
refer to copying images, graphs, tables and ideas. “Presentation” is not limited to written work. It
includes oral presentations, computer assignments and artistic works. Finally, if you
translate the work of another person into any other language and do not cite the source, this is also
plagiarism.
In Simple Words:
Do not copy, paraphrase or translate anything from anywhere without saying where you obtained
it. (Source: The Academic Integrity Website: concordia.ca/students/academic-integrity)
Optional:

FINA 482/4A Winter 2021, G. DIARRA, PhD

Instructor will strive to make learning experience as accessible and inclusive as possible. If you have
accessibility needs that require academic accommodations, please meet with an advisor from the
Access Centre for Students with Disabilities (ACSD) as soon as possible to set up an
accommodation plan. I welcome meeting with all students to discuss their accessibility needs.
concordia.ca/students/accessibility
• Sexual violence, including sexual harassment and sexual assault, is not tolerated at Concordia.
Please see Concordia’s policy on sexual violence for more information about awareness and
prevention, support for survivors/ victims, responding to disclosures and procedures for reports
and complaints. You can also contact the Sexual Assault Resource Centre for information and
support. More information and support are available at the Sexual Assault Resource Centre
concordia.ca/students/sexual-assault, by email sarc@concordia.ca or phone 514 848-2424 x 3353

10. USE OF THIRD-PARTY SOFTWARE & WEB SITES

Concordia University offers many on-campus support services that are available to help students
achieve academic and personal success

LIST OF STUDENT SERVICES

1. Access Centre for Students with Disabilities: concordia.ca/students/accessibility
2. Student Success Centre: concordia.ca/students/success
3. Name of the Department’s Academic Advisor
4. Counselling and Psychological Services: concordia.ca/students/counselling-life-skills
5. Concordia Library Citation and Style Guides: https://library.concordia.ca/help/citing
6. Health Services: concordia.ca/students/health
7. Financial Aid and Awards: concordia.ca/offices/faao
8. Academic Integrity: concordia.ca/students/academic-integrity
9. Dean of Students Office: concordia.ca/offices/dean-students
10. International Students Office: concordia.ca/students/international
11. Student Hub: concordia.ca/students
12. Sexual Assault Resource Centre: concordia.ca/students/sexual-assault
13. As a Concordia student, you are a member of the Concordia Student Union and have many
resources available to you including:
a. HOJO (Off Campus Housing and Job Bank): csu.qc.ca/services/housing-and-job-bank-hojo/
b. CSU Advocacy Centre: csu.qc.ca/services/advocacy-centre/
14. Aboriginal Student Resource Centre: concordia.ca/students/aboriginal

FINA 482/4A Winter 2021, G. DIARRA, PhD