NADRY David & NIKOU Orestis - Economics of European Financial Regulation & Supervision (30h)

Academic Assistant: Uyanga LKHAGVAJAV

The aim of the course is for the student to understand the key aspects of financial regulation and supervision in the EU, with a focus on banks / prudential aspects on one hand, and financial markets / conduct aspects on the other hand.
To that end, the course will discuss the principle notions of bank balance sheet, economic rationale for regulatory interventions in financial markets, the objectives of banking and financial market regulation and their key notions such as solvency ratios and types of regulatory capital.  
The students will also gain an understanding of the global regulatory architecture mainly under the Basel Committee on Banking Supervision. They will also hear about major regulatory reforms after the 2008 Global Financial Crisis, such as Basel III and Too-Big-To-Fail resolution reforms, changes to the supervisory architecture and the reforms under the Capital Markets Union recently rebranded as Savings and Investments Union. The course will also give a practical outline of the metier of supervision, the main supervisory models / approaches and the main phases of the supervisory cycle.
Finally, students will learn about the various stakeholders involved in policy-making and advocacy, and the effects of regulatory reforms on firms and the broader economy.
A number of case studies will bring these concepts to life, with a specific focus on understanding how a bank balance sheet interacts with bank regulation, how financial intermediation works in Europe, and how it is evolving due to innovation, competitive pressures and regulation. Students will also analyse and discuss supervisory problems and possible approaches to solve those problems. Through simulations of policy roundtables, students will debate and aim to convince each other about a specific policy outcome for bank and financial market regulation.

For further information, please check the ECTS card.