Course description

Banking

Introduction

Please note that this course will be revised before it is offered again.

This is a one-week intensive Ph.D. course on the role of banks in the economy. The course will offer both a theoretical and empirical perspective on the financial intermediation role performed by banks and will comprise both lectures and student presentation of scientific papers on banking.

Course content

The course will cover the topics below (if time permits). A complete syllabus will be published in March/April and participants will be provided with a list of readings to be prepared prior to the start of the course.

1. Theories of financial intermediation
2. Bank runs, government intervention, and bank regulation
3. Coordination of international regulation
4. Relationship banking
5. The real effects of bank failures and crises
6. The real effects of financial deregulation and integration of banking markets
7. Interbank markets and the liquidity provision of banks.

Learning outcome knowledge

1. To understand how asymmetric information in credit markets are an important reason why financial institutions such as banks exist

2. To identify the economic functions performed by banks

3. To understand the regulation of banks and the moral hazard problems associated with that regulation

4. To understand the links between the banking sector and the real economy

5. To relate theory and empirical tests

6. To develop an understanding of applied cross-sectional and panel data methods used in research on banking

Exam organisation

  • Class participation: 40%
  • Written assignment: 60%