FINPFST Financial Sector Transformation

School of Business Administration in Karvina
Summer 2011
Extent and Intensity
0/2/0. 3 credit(s). Type of Completion: zk (examination).
Guaranteed by
Ing. Pavlína Haltofová, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
  • Banking (programme OPF, B_HOSPOL)
Course objectives (in Czech)
The goal of the course is to explain basic features of financial sector transformation in Central European countries. It covers topics as a conception of money and functions of money in a market economy, a position and role of financial institutions, financial instruments and financial markets in a market economy. The specific topics cover mergers and acquisitions in banking sector, competition and concentration in financial sector and influence of voucher privatisation on financial sector. Privatisation of banking sector will be also covered. The course considers specific conditions of the Czech Republic, Slovakia, Poland and Hungary during transition onto a market economy in the light of recent changes in European Union and Eurozone, respectively.
Syllabus (in Czech)
  • 1. Financial system
    Financial system as a complex of financial instruments, financial markets and financial intermediaries. Lenders and borrowers. Transition of savings into investments. The financial system and the real economy.
    2. Development of financial system during transformation
    Comparison of financial system in centrally planned economy and market economy. Main development trends and reforming steps at early stage of transformation. Cross-country comparison of transformation path.
    3. Money and financial system
    Definition of money. Controlling the money supply. Demand for money. Money market equilibrium. The transmission mechanism of monetary policy. Governments, inflationary incentives and central bank's independence.
    4. Monetary policy during transformation
    Development and changes in monetary policy strategy and implementation. Role and impact of monetary policy during transformation. Comparison of monetary policy of transition countries in Central and Eastern Europe.
    5. Financial and banking sector structure
    Financial and banking sector structure: theory and practise. Comparison of market-based and bank-based financial sectors. Growing number of banks during transition process. Small and large banks. Competition in banking sector.
    6. Development of banking sector during transformation
    Main features of the banking sector development in transition countries. Banking crises, credit crunches, bailing out non-performing assets, state assistance in capital increases. Changes of banking practices and banking management.
    7. Privatisation of banks
    The initial economic environment for privatisation. The restructuring of property rights. Forms of privatisation. Large privatisation: theory and practise. Benefits and drawback of privatisation of banks.
    8. Development and effects of privatisation in transition countries
    The role of banks and non-banking financial institutions in privatisation. Banks privatisation in transition countries. Cross-country comparison of privatisation strategies. Case studies of bank privatisations. Analysis of impacts and effects of privatisation of banks.
    9. Foreign banks in transition countries
    Historical overview of activities of foreign banks in transition countries. Analysis of mail effects of foreign ownership in banking sector. Current position and market share of foreign banks in Central and Eastern Europe. Overview of the largest and most important foreign banks in the region.

    10. Mergers and acquisitions in financial sector
    Description of a merger and acquisition. Theoretical concepts, differences, impulses, expected outcomes. Historical overview of the acquisition development in the financial sector. Intra-industry and cross-industry mergers and acquisitions. Comparison of mergers in financial sector and other sector of the economy.
    11. Mergers and acquisition of banks
    Banks, branches, and offices. Mergers and creation of value. Bank mergers and acquisition strategies. Reasons/hypotheses for bank mergers. The nature of the acquisition premium. Regulatory concerns: safety, stability, and structure. Case studies of bank mergers in transition countries.
    12. Foreign direct investment in financial sector
    Theoretical framework of foreign direct investment in financial sector. Forms of investment, main reasons and risks. Regulatory and supervision aspects of foreign direct investment. Government attitude to foreign investment in financial sector. Development of foreign investment in financial sectors of transition countries.
    13. Efficiency of banks and financial institutions
    Theoretical concept of efficiency and its application on banks and other financial institutions. Methods of efficiency measurement. Specifications of efficiency analysis in the environment of transition economy. Case studies of efficiency analysis in the region of Central and Eastern Europe.
Literature
    required literature
  • STAVÁREK, D., POLOUČEK, S. The Financial Sector in the Enlarging European Union. (1st ed.). Newcastle: Cambridge Scholars Press, 2006. ISBN 1-84718-020-5. info
  • POLOUČEK, S. (ed.). Reforming the Financial Sector in Central European Countries. Houndmills, Basingstoke, Hampshire: Palgrave Mac, 2004. ISBN 1-4039-1546-6. info
    recommended literature
  • SAUNDERS, A., CORNETT, MM. Financial Markets and Institutions. A Modern Perspective. Boston etc.: McGraw-Hill Irwin, 2001. ISBN 0-07-234892-5. info
  • DECUETO, C., HÁJEK, L., et, al. Politics and Economics in the Czech Transition. Hradec Králové: Gaudeamus, 2000. ISBN 80-7041-232-1. info
  • BONIN, JP., MIZSEI, K., SZÉKELY, IP., WACHTEL, P. Banking in Transition Economies. Developing Market Oriented Banking Sectors in Eastern Europe. Cheltenham, UK, Northampton, MA, USA: Edward Elg, 1998. ISBN 1 85898 604 4. info
  • SINKEY, JF. Commercial Bank Financial Management. Prentice Hall, 1998. ISBN 0-13-521048-8. info
  • MULLINEUX, AW., GREEN, CHJ. (ed.). Economic Performance and Financial Sector Reform in Central and Eastern Europe. Capital Flows, Bank and Enterprise Restructuring. Cheltenham, UK, Northampton, MA, USA: Edward Elg, 1998. ISBN 1 85898 806 3. info
  • HOWELLS, P.,BAIN, K. The Economics of Money, Banking and Finance. A European Text. Addison Wesley Longman, 1998. ISBN 0582-27800-7. info
  • MEJSTŘÍK, M. (ed.). The Privatization Process in East-Central Europe. International Studies in Economics and Econometrics. Dordrecht-Boston-London: Kluwer Academic Publish, 1997. ISBN 0-7923-4096-5. info
  • FABOZZI, FJ., MODIGLIANI, F., FERRI, MG. Foundations of Financial Markets and Institutions. .London etc.: Prentice-Hall, 1994. ISBN 0-13-328980-X. info
  • Madura, J. Financial Markets and Institutions. Saint Paul etc., West Publishing Company, 1992. ISBN 0-314-87735-5. info
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Summer 2008, Summer 2009, Summer 2010, Summer 2012, Summer 2013, Summer 2014.
  • Enrolment Statistics (Summer 2011, recent)
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