2024/2025

Banking

Type: Mago-Lego

Delivered by: International College of Economics and Finance

When: 3 module

Open to: students of all HSE University campuses

Instructors: Vladimir Sokolov

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.