Republic of the Philippines

Commission on Higher Education

City College of San Fernando
San Fernando, Pampanga

GLOBAL BANKING
1st
Semester, SY 2023-2024

Day/Time DESCRIPTIO
N UNITS LECTURER Contact Information
Tuesday Global Banking 3 Wilbert C. Venzon, LPT, PhD.
6:00pm – 9:00pm email:
wilbert.venzon@icloud.com
Mob. No. +63 956 079 6250

Course Description: The monetary policy decisions of central banks around the world are seen
as crucial for outcomes in global financial markets. Central banks focus on setting short ‐term
interest rates. Their decisions to adjust interest rates have enormous impacts on stock markets,
bond markets, and banking. This course develops understanding of financial intermediation and
banking.
It will discuss some measures to manage credit risk, off‐balance sheet risk, operational risk,
liquidity risk, solvency risk, etc., and how these risks are identified, measured and managed,
using several risk mitigation techniques and regulatory mechanisms. aspects of the real-world
analysis and strategic decision-making faced by banks in response to geopolitical, economic,
regulatory, and technological change.
Textbooks: (not required).
1. Frederic S. Mishkin, (2016) "The Economics of Money, Banking, and Financial Markets”,
11th Edition, Pearson.
2. R. Glenn Hubbard and Anthony P. O’Brien, (2017), “Money, Banking and the Financial
System”, 3rd Edition, Pearson.
3. Stephen G. Cecchetti and Kermit L. Schoenholtz, (2017), “Money, Banking and Financial
Markets”, 5th Edition, MacGraw Hill.
4. Mervyn King, (2016), “The End of Alchemy: Money, Banking and the Future of the Global
Economy”
Grades: All assignments should be submitted by their due dates and times. 5% quizzes; 20%
problem sets; 20% presentation/research assignment; 25% midterms, 40% accumulative final
exam in‐class, open books and notes.

The group project you will need to write up to 10–15 page report on the economic and financial
solvency of the intermediary (bank or no‐bank) institution. You can be optimistic or pessimistic,
but you should ground your assessment in data of some kind, as well as the analytical concepts
covered in the course.
_____________________________________________________________________________
Course outline:

Part A. Central Banking and Monetary Policy

1. Money (Chap. 4, 123‐127; Chap 3; Chap. 15, 379‐384; Chap 20, 534‐537)
2. Interest Rates (Chap. 16, Chap. 5, 146‐156; Chap. 6, 168‐178)
3. Monetary Policy Transmission Mechanism, Mundell Fleming Trilemma (Chap 22 ‐24;
Chap 17, 457‐460)
4. Central Bank Strategy (Chap. 17) . Inflation, price rigidities, financial frictions, Long ‐run
Philipps curve Taylor rules and it’s limitations. Inflation Targeting
5. Exchange Rates (Chap 18 ‐19)
6. Capital flow, Sudden Stop. (lecture notes)
7. Central Banks Structure ( Chap. 14)

Part B. Banking and the Financial System

1. Economics of Financial Intermediation (Ch. 8)
2. Banking Industry (Ch. 13) investment banks, saving banks, commercial banks.
3. Business of Banking (Ch. 11)
a) Credit & collateral;
b) (ALCO) asset & liability management (assets: real estate, ; liabilities (deposits, ,
correspondent accounts; liability management:
c)Bank capital management;
d)Sales & trading (fixed income, derivatives, equities);
e)International transactions (swift, incoterms).
f)Risk management (credit risk, market risk, FX risk (spot, forward, swop), operational
risks, liquidity risk, off‐balance sheet risk).
g) Research (global economic, by industry and equity (real estate, consumer products,
technology, health care, retail).
h) Internal Audit;
4. Non‐banking financial institutions.
Part C. Global banking
5. Credit crunch, liquidity & solvency, bubbles, banking panics and runs. Financial Crises
(Ch. 9‐10).
6. Banking Regulation (Ch. 12). Basel guidelines on capital adequacy, supervision of
financial institutions, determinants and macro limitations. Systemic Risk Measures and
Financial Regulation. Great Recession, stress testing.
7. Credit Ratings
8. FinTech, Cryptocurrencies.
9. Lessons for the future
10. Presentation of group projects: bank stress‐testing.

Guidelines and Suggestions for group project

1. Provide an initial table of contents or lay out the analysis at the beginning. This helps more
than you can imagine.
2. What is your bottom line? Can you summarize the main points of your argument or
interpretation of events in just a few sentences? If not, then you may not have converged
sufficiently within your group on the main conclusions to be drawn.
3. Don't just "dump" data on the reader at any point, explain what numbers you are using and
why. Otherwise readers are overloaded and tune out.
4. Be sure to explain your exact sources for key points, whether facts or assertions. The
credibility of sources varies a great deal and this helps the reader evaluate which parts of
your work are built on rock and which more likely based on something sandy.
5. Avoid vagueness of any kind. Be direct and specific.
6. Integrate exhibits in the text—don't just say, "see exhibit 4" (e.g., for graphical analysis)
without discussing fully in the text. Assume that all readers of everything are busy and
distracted people— they sit down with your text hoping to be drawn into it. Make things easy
for them.
7. Make your timeline of events under discussion very clear always.
8. Use the analytical frameworks discussed in class.
9. You might want to have an outsider look at your text. Do you have sufficient distance from
the policies and events under discussion? Are you writing with a sufficiently critical eye,
clear language?