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Regulation and Supervision of Financial Markets

Objectives

The purpose of this course is threefold: first, to provide a general understanding of the elements, functioning and purposes of the financial system (comprising its three subsectors: banking, insurance and capital markets); second, to present and discuss the most salient features of financial regulation and supervision both at the international level and, especially, at the EU level; and third to address the regulation and supervision of banks ¿ as the most relevant financial institution of any financial system ¿ both when they perform ¿strictly¿ banking activities and when they act within financial markets, most notably as financial intermediaries.

General characterization

Code

33145

Credits

4

Responsible teacher

Lúcio Tomé Feteira

Hours

Weekly - 2

Total - 24

Teaching language

English

Prerequisites

Not Applicable

Bibliography

  • ABREU, Margarida et alii, Economia Monetária e Financeira, 3.ª edição (Escolar editora: 2018)
  • ALEXANDER, Kern, Principles of Banking Regulation (CUP: 2019)
  • ARMOUR, John et al., Principles of Financial Regulation (OUP: 2016)
  • CÂMARA, Paulo e MAGALHÃES, Manuel, O Novo Direito Bancário (Almedina: 2012)
  • CATARINO, Luís Guilherme, Regulação e Supervisão dos Mercados Financeiros (Almedina: 2010)
  • CHIU, Iris H-Y and WILSON, Joanna, Banking Law and Regulation (OUP: 2019)
  • COUPPEY-SOUBEYRAN, Jézabel, Monnaie, banques, finance (PUF: 2015)
  • FERREIRA, Eduardo Paz; MORAIS, Luís e ANASTÁCIO, Gonçalo (coord.), Regulação em Portugal. Novos Tempos, Novo Modelo? (Almedina: 2009)
  • GONZÁLEZ, Altina de Fátima Sebastián e PASCUAL, Joaquín López, Economia e gestão bancária (UCE: 2015)
  • De HAAN, Jakob et alii, Financial Markets and Institutions: a European Perspective, 3rd edition (CUP: 2015)
  • HAENTJENS, Matthias / DE GIOIA-CARABELLESE, Pierre, European Banking and Financial Law (Routledge: 2015)
  • LAMANDINI, Marco e MUÑOZ, David Ramos, EU Financial Law: an introduction (Cedam/Wolters Kluwer: 2017)
  • LEVINSON, Marc, Guide to Financial Markets: why they exist and how they work, 7th edition (The Economist Books, 2018)
  • MISHKIN, Frederic S., MATTHEWS, Kent e GIULIODORI, Massimo, The Economics of Money, Banking & Financial Markets [European edition], (Pearson, 2013)
  • MOLONEY, Niamh, EU Securities and Financial Markets Regulation, 3.ª edição (Oxford University Press: 2014)
  • MORAIS, Luís, «A função reguladora e as estruturas de regulação na União Europeia», in Paulo Pitta e Cunha/Luís Morais (orgs), A Europa e os Desafios do Século XXI (Almedina: 2008)
  • PINA, Carlos Costa, Instituições e Mercados Financeiros (Almedina: 2004)
  • SARAIVA, Rute, Direito dos Mercados Financeiros, 2.ª edição (AAFDL: 2015)
  • VEIL, Rüdiger (coord.), European Capital Markets Law (Hart: 2016)

Teaching method

Lectures combining introductory and explanatory presentations by the lecturer with the discussion and analysis of previously assigned materials and/or topics.

Evaluation method

Students may choose between two types of assessment: (i) an assessment exclusively based on the grade obtained at the final written exam (100%); or (ii) an assessment based on the weighted average resulting from the grade obtained in the final written exam (50%) combined with the grade resulting from active participation in the classroom (50%). The latter will require the reading of materials on and discussion of preselected topics

Subject matter

I. The regulation and supervision of the financial system

1.1 The financial system in general 

1.2 Regulation and supervision of the financial system in the wider context of public regulation 

1.3 Financial system: elements, functioning, purposes and recent trends

1.4 Financial markets: an introduction

1.5 Financial regulation and supervision: scope, justifications, objectives and limitations; institutional models.

II. Financial regulation and supervision: the international layer

1. Introduction

2. Mains actors: Financial Stability Board (FSB); Basel Committee on Banking Supervision (BCBS), IOSCO and IAIS

3. The Basel Committee and the Basel Capital Accords: from Basel I to Basel III and beyond

III. Financial regulation and supervision: the EU layer

3.1 The evolution of financial regulation in the EU: fundamental freedoms, the European passport and the Single Rule Book

3.2 The evolution of financial supervision in the EU: the before and after the creation of the European System of Financial Supervision (ESFS)

3.3 The European Supervisory Authorities (ESAs)

3.4 The European Systemic Risk Board (ESRB)

IV. The Banking Union

4.1 Origin and purposes; components and missing parts

4.2 The Single Rulebook

4.3 The Single Supervisory Mechanism (SSM)

4.4 The Single Resolution Mechanism (SRM)

4.5 The European Deposit Insurance Scheme (EDIS)?

V. The Capital Markets Union

1. Origin and purposes

2. Current developments

VI. Banking meets capital markets: the regulation and supervision of banks as financial intermediaries