Master
2022/2023
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
Instructors:
Vladimir Sokolov
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 runs in the second semester and is divided into parts. The first part of the course (part I) is applied banking. The second part of the course (part II) is empirical academic.
The course starts with a review of the banks’ financial statements and definitions of concepts that will be used in the following lectures. Then it covers the main activities of banks – lending and attracting deposits. The issues of credit rationing and relationship banking that have received a lot of focus in academic literature will be highlighted. When covering the deposit attraction activities of banks, the concept of bank runs and liquidity risk will be reviewed. This motivates assessment of the popular regulatory policy implemented in many countries - deposit insurance. We will discuss studies that investigate the moral hazard and risk shifting problems that arise due to deposit insurance policies. The last several lectures are related to the very active debate on prudent regulation of the banking industry that gained a lot of attention following the recent financial crisis. The banking theories often provide contradictory answers to the following questions that are very important to the regulators: Does the policy of promoting higher competition among bank lead to banking sector stability? Do we need large or small banks? Do higher capital requirements imposed on banks lead to lower risk-taking by banks? What ownership structure leads to better corporate governance? The broad range of empirical papers that shed light on these questions will be discussed. In the end of the course each student will be present one academic paper on the issues covered in the course.
Learning Objectives
- The banking course will cover the main concepts in banking as well as empirical contributions that have been recently published in the academic journals.
- The chosen topics are also intended to advance the students’ understanding of the main regulatory debates regarding the role of the banking industry in the economy.
Expected Learning Outcomes
- summarize and critically evaluate research in banking
- carry out fundamental research in the field of banking and financial economics
- solve analytical problems
- interpret the results of banking models
- solve professional problems
- produce regulatory/policy documents
Course Contents
- Part I. Applied Banking Lecture 1 – Introduction to bank analyses
- Lecture 2 – Risk and Capital Management
- Lecture 3 – Banks types and business models part 1
- Lecture 4 – Banks types and business models part 2
- Lecture 5 – Liquidity of banking system
- Lecture 6 – Banking regulation
- Part II. Banking empirics: Academic Lecture 1. Financial Intermediation and Depository Institutions
- Lecture 2. Risks Faced by Banking Institutions
- Lecture 3. Bank Lending
- Lecture 4. Credit Rationing and Relationship Lending
- Lecture 5. Bank Funding and Deposit Insurance
- Lecture 6. Money Market Funding
- Lecture 7. Liquidity Regulation
- Lecture 8. Bank Capital and Capital Regulation
- Lectures 9-10. Student’s presentations
Assessment Elements
- exam
- attendance part I
- in-class performance part I
- Class participation part II
- Student presentations
Interim Assessment
- 2022/2023 3rd module0.06 * Class participation part II + 0.62 * exam + 0.08 * in-class performance part I + 0.06 * attendance part I + 0.18 * Student presentations
