Global Financial Market, Institutions, and Regulations

The following is a tentative schedule. A concrete and more detailed schedule will be presented on the first day of the course. 1.Introduction to global coordination of financial regulation This lecture will provide an overview of the course and purposes of global coordination of financial regulation. 2.History of international financial regulation This lecture will provide history of international financial regulation and international financial standard setting bodies; particularly in relation to the development of international financial markets 3.Financial crisis of 2008/2009 This lecture will provide an overview of the 2008/2009 financial crisis. 4.Regulatory reform after the 2008/2009 financial crisis This lecture will provide an overview of the regulatory reform after the financial crisis. From this lecture, to the lecture of financial technology and cyber risk, the lectures will discuss key regulatory development after the financial crisis. The lectures will cover purposes and policy measures of each regulatory issue. 5.Global systemically important financial institutions (G-SIFIs) This lecture will discuss global systemically important financial institutions in particular background of the policies, the identification methodologies and the policy measures of the G-SIFIs. 6.Recovery and Resolution This lecture will discuss international standards of recovery and resolution regimes in particular those developed by Financial Stability Board (FSB). 7.Capital requirements This lecture will cover global standards of capital requirements in particular Basel III and Insurance Capital Standards (ICS). 8.Liquidity requirements This lecture will discuss liquidity requirements for the banking sector. In particular the lecture will cover Liquidity Coverage Ratio (LCR) and liquidity monitoring tools. 9.Corporate governance This lecture will cover regulatory standards on corporate governance referring FSB, and other standard setters’ standards. 10.Market based finance (Shadow banking) This lecture will cover regulatory standards on market-based finance (shadow banking). 11.Over the counter derivatives (OTC) This lecture will discuss regulatory standards on over-the-counter derivatives and central clearing houses. 12.Cyber risk This lecture will cover current development of financial policy making in relation to cyber risk. 13.AI and Fintech This lecture will cover current development of financial policy making in relation to artificial intelligence (AI) and financial technology. 14.Digital currencies This lecture will discuss development of digital currencies and their regulatory issues. Students will make presentations based on their Term Papers.

Each class consists of a lecture and discussion on the weekly topic. The course plan is structured with papers published by FSB (Financial Stability Board), BCBS (Basel Committee on Banking Supervision), IAIS (International Association of Insurance Supervisors) and IOSCO (International Organization of Securities Commissions). Students are required to read documents listed in the reading list before the class, and are expected to participate actively in the classroom discussion. In addition students are requested to write a term paper. Students have an opportunity to make a presentation of their idea to the class so that they can incorporate comments from others into their term paper.

Each student will be assessed as follows:
 40% - class attendance and contribution to class discussion
 40% - production of a term paper (individual) 20% - presentation of the term paper with PowerPoint

Financial Stability Board website: http://www.fsb.org/***** Basel Committee on Banking Supervision website: https://www.bis.org/***** International Association of Insurance Supervisors website: https://www.iaisweb.org/***** International Organization of Securities Commission website: http://www.iosco.org/*****

Documents published by FSB, BCBS, IAIS, IOSCO

Both MPP/IP and non-MPP/IP students are welcome to this English-taught course. The course is multidisciplinary: a good understanding of economic theories as well as law, public administration, and international relations are important. Students are expected to possess knowledge on basic economic theories and finance concepts before taking this course. Those students who are uncertain in this regard should consult Prof. Kawai in advance.