77724 International Banking and Finance Law

This subject is important for students wishing to understand the transnational nature of corporate finance and regulation, and the central place of banks and other financial intermediaries in the globalisation of commerce. This subject is an advanced study of types of cross-border finance, regulation of banking between countries and regions, foreign exchange and derivative markets, and international financial and banking policy. Case studies will cover the US, European Union, East Asia, and emerging markets, with a focus on whether globalisation of banking and finance has beneficial or detrimental social consequences and whether convergence to a single international financial system is desirable or even possible.

Topics covered in the subject include:

• international banking/finance systems
• US securities/banking markets: international aspects
• the Bank for International Settlements, Basel Accord and capital adequacy
• East Asia: Japanese and Chinese banking/capital markets
• risk control: foreign exchange, hedging, derivatives, operational risk
• emerging markets and the debt crisis
• privatisation and the IMF/World Bank
• Europe: Monetary Union and securities/banking markets
• convergence and the globalisation of banking and finance?

This is a semi-intensive subject offered on four Saturdays during the semester.

Assessment: Research paper (60 per cent), in-class student exercises (20 per cent), subject participation (20 per cent).