MJJV.10.

043 Banking
2022/2023 spring regular studies 6 ECTS

Faculty/Department Chair of Finance and Accounting (SVMJ06)

Amount of credits (1 ECTS=26 hours) 6 ECTS
Amount of credits (before 31.08.2009) 4 CP
Duration in semesters 1
Final assessment differentiated (A, B, C, D, E, F, not present)
Syllabus credits 6 ECTS
Lecturers Maire Nurmet (responsible), Janek Uiboupin, Lenno Uusküla
Languages of instruction English
Minimum number of attendants 15
Maximum number of attendants 65
Study levels bachelor's studies
Target group and/or preconditions Bachelor students, 1st year, majandusteaduse bakalaureuseõpe
for participation (valik)
Forms of teaching and learning and lectures: 24 practice learning: 4 seminars: 20 independent work
no of hours (including e-learning): 108
Form of study blended learning
Study period (in weeks) 24-39

Curricula containing this course

Business Administration (80995) bac. 2020/2021 2021/2022 2022/2023
Economics and Business Administration (2442) bac. 2020/2021 2021/2022 2022/2023

Objectives
Students will explore the main standpoints of different monetary theories about tasks, functions, quality and sorts of
money and monetary systems; describe the goals of monetary policies,
methods and restrictions enacting them; describe expectations of the state, owners and clients of the banks; explore
the structure, operation and technology of the banks, also main banking services, the ability to use them and risks
connected to the services.

Learning outcomes
After passing through the course the student has the knowledge about modern role of money and functioning
principles of monetary and credit system, incl. idiomaticalness of Estonia. According to the theoretical concepts of
monetary policy the student can evaluate purposeness and efficiency of instruments used in realised monetary
policy. The student understands the role of the banks in the economy, has the overview of the financial basis of
modern banking and services offered by financial institutions. The student has the ability to read financial statements
of the banks and analyse different financial ratios (liquidity, risks, profitability etc); to use the main methods of
management of financial risks; to compare and choose between basic services offered by banks, incl. credit
schemes, cash and noncash instruments and channels, deposit products, forex and derivative trade; perform
solvency analysis according theoretical concepts.

Brief description
The basic concepts of money and banking are delivered. Practical exercises include the concept of time value of
money, loan planning etc. During seminars essays are presented and discussed by the students

Groups
Mark Limit of attendants Lecturers
Schedule
lecture - w25. Financial system and financial intermediaries. Functions, forms, nature and
development of money. Money creation and money supply. (4h) MN
lecture - w26-l. Commercial bank operations. Banking services. (4h) MN

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 e-learning - w27-l. Management: Bank performance measurement. Credit and credit pricing.
Interest rates. (4h) MN
lecture - w28-l. Monetary policy (4h) LU

lecture - w29-l. Monetary policy continued (4h) LU

lecture - w30 Monetary operations and international organisations + recap + example questions
for the test (4h) LU
test - w31. Home reading and Mid-term test. (4h) LU Moodle

e-learning - w 32 Interest rates of credit instruments and present value concept.(4h) MN

e-learning - w33-l. General principles of bank management. Banking risks, regulations and
supervision (4h) JU
e-learning - 34L. Banking risks, regulations and supervision. Asymmetric information and
financial regulation (4h) JU
seminar - Guest lecturer's lecture or presentations by students. (4h) MN

seminar - Team work and presentations by students. Discussion of term papers. (2h) MN

seminar - Final test

Lecture materials and course home page

Web-based learning environment
http://moodle.ut.ee
Compulsory study materials
Casu, B.; Girardone, C.; Molyneux, P. Introduction to Banking. Pearson Education, 2015
Casu, B.; Girardone, C.; Molyneux, P. Introduction to Banking. Pearson Education, 2006.
Recommended study materials
Mishkin, F.S., Eakins, S.G., Financial Markets and Institutions. Eighth ed. Pearson, 2015.
Mishkin, F. S., Eakins, S, (2018). Financial Markets and Intermediaries. 9-th. Ed. Pearson.
List of independent works and their instructions
Term paper. The student will have to write a term paper on selected topics in economic journals. The
term paper will be graded as follows: Accuracy of the data: 20% of 100; -Style of writing, grammar and
spelling: 15%; -Use of theories, models and concepts: 35%; -Relevance of the commentary: 30%.

Assessment methods and criteria

test Mid-term test (25% of final grade)- topics covered in lectures 1-4. Moodle.
presentation Presentation of term paper (20% of final grade). Each student or a group
has to give a presentation in seminar (5-7 min). Moodle
final written assessment Examination (55% of final grade). Moodle

Requirements to be met for final assessment

Writing and presentation of the term paper, mid-term, and written exam

To obtain final grade, the following is required

mid-term test 25%, presentation of term paper 20%, and written exam 55%.
Options for taking tests/exams at later date
According to the course time-table

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