Financial Regulation & Supervision

SM82.02: Financial Regulation and Supervision[3 Credits]
Semester: January


Banking is a highly regulated industry in any country in the world. Recent times have seen a trend towards convergence in banking regulation around the world. Professionals seeking to build a career in banking would need to have good understanding of the rationale and content of these regulations.

This course will enable participants to:

  • Develop familiarity with the most important laws and regulations governing the financial services industry
  • Understand the role of supervisory authorities, external and internal auditors, and compliance officers
  • Be familiar with recent developments in international accounting and corporate governance, with a special emphasis on issues regarding the financial services industry.
  • Be aware of ethical issues and problems in the financial services industry

Catalog Description:

Auditors, supervision, financial services, accounting and corporate governance

Pre-requisite(s): None

Course Outline:

I. Banking Law and Compliances

  • Supervision and Regulation
  • Banking Law
  • The Basel Accords
  • Corporate Governance in the Finance Industry
  • Internal Controls and Auditing
  • Compliance

II. Corporate Governance

  • Situational dimension
  • Strategic dimension
  • Integrated board management dimension
  • Controlling dimension

H. Davies, and D. Green:
Global financial regulation: The essential guide, Cambridge, UK, Polity Press, 2008.

Reference Books:

Carnell, R.S., Macey, J.R., and Miller, G.P.:
The law of banking and financial institutions, New York, Aspen Publishers, 2008

M.P. Malloy:
Principles of bank regulation, St. Paul, MN, West Group (2nd Edition), 2003

M. Hilb:
New corporate governance: Successful board management tools, Heidelberg, Springer (3rd Edition), 2010.

Journals and Magazines:

Journal of Banking Regulation
Journal of Banking and Finance
Accounting, Auditing & Accountability Journal
Harvard Business Review
European Business Review
Managerial Finance
Managerial Law

Grading System:
Mid-term exam (30%),
Final exam (40%),
Assignments (30%)

Instructor(s): Mr.Weerakoon Wejiardena, Ex-Deputy Governor, Central Bank of Sri Lanka