Banking & Financial Intermediation: Concepts, Risks, Capital & Regulation

edX Banking & Financial Intermediation: Concepts, Risks, Capital & Regulation

Platform
EdX
Provider
Indian Institute of Management Bangalore
Effort
3-4 hours a week
Length
7 weeks
Language
English
Credentials
Paid Certificate Available
Part of
Course Link
Overview
This course, part of the Professional Certificate Program ‘Risk Management in Banking and Financial Markets’, will help you understand the theories and the macroeconomic context governing banking and financial intermediation as well as measures to manage credit risk, off-balance sheet risk, operational risk, liquidity risk and solvency risk, including Basel guidelines on capital adequacy.

Banks and other financial intermediaries make up a large part of the ‘ecosystem’ that channelizes money from those who have it (i.e. savers/investors) to those who need it (i.e. borrowers). Central Banks in most countries also use that ecosystem to effectively manage money supply (liquidity) and to safeguard the stability of the financial system.

This course will look at the products and services offered by banks and financial intermediaries and the significant complexities and risks they encounter in conducting their business in a globally interconnected world.

It will address in detail the embedded risks in banking and financial intermediation such as 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.

This course is part of IIMBx's Professional Certificate program ‘Risk Management in Banking and Financial Markets’.

What you'll learn
In this course you will learn:
  • The role of banking and financial intermediation in any economy
  • The theories and the macro-economic context governing banking and financial intermediation
  • The processes, functions, advantages and drawbacks of banking and financial intermediation
  • The various types of lending and investing activities undertaken by banks and financial intermediaries and the nature of collaterals/securities used
  • The need for and the role of non-fund based business, the products and services that comprise these non-fund based services and how and why are they accounted as ‘Contingent Liabilities’
  • The heightened level of embedded risks in banking and financial intermediation in globally interconnected financial systems, including:
    • Credit risk
    • Off-balance sheet risk
    • Operational risk
    • Liquidity risk
    • Solvency risk
  • How are these risks identified, measured and managed, using several risk mitigation techniques and regulatory mechanisms
  • ‘Capital adequacy’ and ‘Basel guidelines’ and their role in ensuring the stability of the financial system in any country
Taught by
PC Narayan

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