Master
2021/2022
Banking
Type:
Elective course (Financial Economics)
Area of studies:
Economics
Delivered by:
International College of Economics and Finance
When:
2 year, 3 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Master’s programme:
Financial Economics
Language:
English
ECTS credits:
3
Contact hours:
32
Course Syllabus
Abstract
Banking is an optional course for the master level students at ICEF. The course is divided into parts. The first part of the course (part A) is focused on theoretical aspects of banking. The second part of the course (part B) is will cover the main empirical contributions that have been recently published in the academic journals. This material will illustrate how banking theories introduced in the first part of the course stand against the empirical evidence. Prerequisites: For part A, some knowledge of game theory and the basic concepts of modern finance is recommended. For part B, a good knowledge of panel data econometrics methods and bachelor’s level of banking is recommended.
Learning Objectives
- to provide an overview of the theoretical aspects of banking
- to provide an overview of the theoretical aspects of banking
- to advance the students’ understanding of the main regulatory debates regarding the role of banking industry in the economy
- to advance the students’ understanding of the main regulatory debates regarding the role of banking industry in the economy
Expected Learning Outcomes
- Critically analyze the main empirical contributions that have been recently published in the academic journals
- Explain bank runs and banking regulation
- Explain the credit rationing phenomenon
- Explain why financial intermediaries exist
- Outline the role played by asymmetric information in the financial intermediation process
Course Contents
- Banking theory: 1) Why financial intermediaries exist.
- Banking theory: 2) The asymmetric information justifications of financial intermediation.
- Banking theory: 3) The equilibrium of the credit market.
- Banking theory: 4) Bank runs and the lender of last resort.
- Banking theory: 5) Regulation and its justifications.
- Banking empirics: 1. Overview of the bank’s financial statements, measures of market power and bank’s soundness
- Banking empirics: 2. Bank lending
- Banking empirics: 3. Bank funding and liquidity risk
- Banking empirics: 4. Deposit insurance and banks’ risk taking
- Banking empirics: 5. Competition, risk taking, capital requirements
- Banking empirics: 6. Banks’ size, Too-Big-to-Fail
- Banking empirics: 7. Bank capital and regulation
- Banking empirics: 8. Bank ownership and governance
- Banking empirics: 9-10. Student’s presentations of academic papers
Interim Assessment
- 2021/2022 3rd module0.18 * presentation + 0.03 * class participation + 0.08 * in-class performance + 0.06 * attendance + 0.65 * final examination
Bibliography
Recommended Core Bibliography
- Microeconometrics of banking : methods, applications, and results, Degryse, H., 2009
- Microeconomics of banking, Freixas, X., 1999
Recommended Additional Bibliography
- Contemporary financial intermediation, Greenbaum, S. I., 1995
- Frederic S. Mishkin. (2013). The Economics of Money, Banking and Financial Markets: Pearson New International Edition : The Business School Edition. Harlow, United Kingdom: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1418827