2688 Banking and Finance, 6 cr
||Banking and Finance
||Date of expiry
This course has two parts. The first part consist of an introduction to financial economics. The second part deals with microeconomics of financial intermediation. The course will emphasize the role of asymmetric information in financial and credit markets. It will also explore the design of risk management as well as the theories of financial intermediation and its regulation. The course will focus on the following issues:
-the role of financial markets,
-informational efficiency of markets,
-risk pricing and management,
- corporate governance
- entrepreneurial finance
- asymmetric information, adverse selection, and moral hazard in corporate finance and credit markets
- relationship lending and bank monitoring
- screening and the use of collateral in bank lending
- financial stability and financial crises
-bank runs, deposit insurance and systematic risk,
-securitization and the subprime crisis,
-the regulation of banks
Banking: After the course students have an analytic perspective on crucial issues in modern banking with a particular emphasis on the implications of asymmetric information and they are familiar with the topical issues related to European bank regulation.
Finance: Students understand the limitations of frequently used models for risk pricing and management in financial markets and are able to analyze and propose solutions to problems caused by informational asymmetry in these markets.
|After completing the course, you will be able to
- understand the implications of asymmetric information for financial and credit market efficiency
- analyze and propose solutions to problems caused by informational asymmetry in financial and credit markets.
- understand the role of banks in an economy and their vulnerability to crises
- understand the limitations of frequently used models for risk pricing and management in financial markets
- understand the goals and limitations of bank regulation
- analyze the topical issues related to financial intermediaries and their regulation
- participate in the debates concerning financial crisis and bank regulation analytically
An Intermediate level course in microeconomics, a course in econometrics.
|Total Student Workload
160 hours divided into
Scheduled (contact) hours: 30 h
Non-scheduled work: 130 h
Lectures,individual assignment,bilateral intervews
|Literature and Course Material
- Bénéplanc, G. & Rochet, J.-C. (2011). Risk management in turbulent times. New York: Oxford University Press
- Freixas, X. & Rochet, J.-C. (2008). Microeconomics of banking. 2nd Edition. Cambridge, Mass: MIT Press.
- Tirole, J. (2006). The Theory of Corporate Finance. Cambridge, Mass: MIT Press. (Selection of chaptersfor the books above according to instructions from lecturer)
individual assignment including an oral examination with a lecturer
|Non-degree studies (Open University, JOO and Contract Studies)
Open university quota: 3
Quota for JOO-students: 3
Courses now and in the future (registration requires login and a valid study right)