This course aims first to characterise current institutional and market conditions financial entities face in their activity and the main risks associated to the banking balance sheet. Subsequently, the course details the process for selecting banking assets vis-à-vis the profitability required by shareholders and the applicable regulatory rules. It also analyses the issue of financing alternatives and the maturity differentials, between assets and liabilities. Lastly, the main elements associated with the European Banking Union are identified, as are their implications for the sector.