International Financial Centers

  • Credits: 3
  • Ending: Examination
  • Range: 1P + 1C
  • Semester: winter
  • Year: 2
  • Faculty of Economic Informatics

Teachers

Included in study programs

Accounting and Auditing

Teaching results

a) to create understanding of functions of the international financial centers in the global economy
b) to differentiate among various phases achieved in the economic integration of different regions of the world
c) to differentiate the individual international financial centers with respect to their functions in the global economy
d) to get familiar with classification, historical cases and models of financial crises and to benefits from their elimination
e) to applicate ethic values in differentiation of the importance of various international financial centers, especially off-shore centers
f) to demonstrate the ability to utilize analytical and quantitative methods in assessment of international financial centers
g) to be able to integrate theory into practice and to demonstrate creativity in problem solving
h) to be able to reflect on new challenges in global economy with regard to the changes in international financial architecture.
Knowledge and understanding:
a) to apply thorough and sectoral knowledge in the area of international financial centers and to take critical stance towards current theories in this area
b) to use the sophisticated methods and procedures of analysis on level corresponding to international standards
c) to utilize obtained knowledge in solving key research issues in creation of international financial centers
d) to demonstrate the ability to collect and to analyze data and information from various sources and construct recommendations for improvement the functionality of international monetary system
Practical skills and competences:
a) to demonstrate the ability to work in team
b) to select and to use appropriate techniques and research methods
c) to be able to collect, to select and to analyze data
d) to take critical stance towards own results as well as to the results of other researchers
e) to formulate understandable and compelling presentations of own results
f) to demonstrate creativity and intellectual curiosity in this specialization and to utilize them in following research

Indicative content

LECTURES:
1. Functions and role of international financial centers (IFCs) in the global economy
2. International banking as a key factor in the process of IFCs creation
3. International financial institutions and their importance for IFCs (BIS, EIB, CEB, EBRD, IMF, The World Bank Group, regional development banks)
4. International monetary system and its impact on the formation of IFCs
5. International role of key currencies – their future stance – schemes of international reserve currency, central bank digital currencies, recycling of USD
6. Progress in economic (monetary) integration as a factor of IFCs creation– mainly in other regions of the world – Africa, Asia and America
7. On-shore and off-shore centers
8. Risks in the IFCs activities, the role of rating, index of global financial conditions index
9. Financial crises (types, generations, models) as a factor affecting the structure of IFCs, crises solutions
10. Comparison of the main IFCs in the world – stock exchange, OTC, institutions, economies
11. Changes in the global financial architecture
12. New leaders of the global economy
13. Global imbalance, trends and perspectives, global risks with outlook up to 2050
SEMINARS:
1. Global financial centers index – analysis of measurable indicators, FinTech ranking and rating
2. Latter trends in international banking – international rankings and their assessment, BANKER database usage
3. Reforms of supranational financial institutions – their comparison, genesis and possible direction
4. Analysis of foreign exchange reserves in the global economy, allocated/unallocated foreign exchange reserves, their adequacy, the selection of foreign exchange regime, the present currency phenomenon – debt intolerance, original sin and currency mismatches
5. Discussion about pilot projects of central bank digital currencies
6. Potential advantages/disadvantages of economic alliances and integrations
7. Methods and forms of money laundering– case studies
8. Models of risk measurement, the strategy of risk management, action plan
9. Case studies – successful/unsuccessful treatment from crisis – discussion
10. Assessment of most important organized markets in the world, selected entities from financial market segments in the main IFCs – database usage, selection of relevant indicators and their evaluation
11. Workshop – team presentations
12. Framework of leader position evaluation in the global economy – possibilities of
optimalization
13. Deepening of income inequalities – practical analysis of the Euro Area countries

Support literature

1. Kotlebová, J. – Chovancová, B. (2010). Medzinárodné finančné centrá – zmeny v globálnej finančnej architektúre. Bratislava: Iura Edition 2010, ISBN 978-80-8078-299-3
2. Set of latest scientific papers related to the lecture topics – provided regularly
3. IMF. (2013) International Reserves anf Foreign Currency Liquidity – Guidelines for a data template.
4. Kotlebová, J. (2010) Future Stance of the Currencies in International Monetary System. Economic Analysis No 1-2/2010, Belgrade Serbia: Institut of Economic Sciences, ISSN 1821-2573
5. Kotlebová, J. (2010) New World Economic Leaders. NBS: Biatec 5/2010, ISSN 1335-0900
6. Aizenman, J. – Chin, M. D. – Ito, H.: Assessing the Emerging Global Financial Architecture: Measuring the Trilemma´s Configurations over Time. NBER Working Paper No. 14533, Cambridge, December 2008
7. Eichengreen, B. (2007) The Breakup of the Euro Area. NBER Working Paper No. 13393, Cambridge, September 2007
8. Eichengreen, B. – Bordo, M. D. (2002) Crises now and then: What Lessons from the Last Era of Financial Globalization? NBER Working Paper Series No. 8716, Cambridge, January 2002
9. Reinhart, C. M. – Rogoff, K. S. (2008) Banking Crises: An Equal Opportunity Menace. NBER Working Paper Series No. 14587, December 2008
10. Ivanička, K. et al. (2010) Overcoming Crisis – Creation of the New Model for Socio-economic Development of Slovakia. Bratislava: Ekonóm 2010, ISBN 978-80-225-2882-5
11. Kindleberger, Ch. P.(1974) The Formation of Financial Centres: A Study in Comparative History. International Finance No. 36, Princeton, New Jersey 1974
12. Gorostiaga, X. (1984) The Role of the International Financial Centres in Underdeveloped Countries. New York, St. Martin´s Press 1984
13. Wottava, M. (1997/98). Daňové ráje. British Royal Crown Trust
14. Výročné správy MMF, BIS, Skupiny Svetovej banky

Requirements to complete the course

30 % team presentation of project
70 % written exam

Student workload

78 hours - 13 lectures, 13 hours seminars, 22 hours for preparation of project, 30 hours study for final exam

Language whose command is required to complete the course

Slovak, English

Date of approval: 11.03.2024

Date of the latest change: 20.12.2021