Banking and Financial Intermediation (HEC)

Objective

This course is an introduction to the theory and the empirics of banking, financial intermediation and financial crises. The goal is to establish close mappings between theories of banking and empirical tests. After introducing classical models, attention is paid to recent topics (e.g. financial crises, securitization, monetary policy, regulation).

The goal of the course is to provide a solid understanding of the role of banks and other intermediaries in the economy. A particular attention is also paid to financial crises. At the end of the course, students should be familiar both with major theories as well as with important stylized facts. Standard identification issues in banking, and how to address them, should also be known. 

https://phd-in-economics.com/docs/courses/Banking%20and%20Financial%20Intermediation.pdf

Planning

Course organization:
Session 0. Introduction
Session 1. Banks as delegated monitors
Session 2. Liquidity creation, bank runs and deposit insurance
Session 3. Information-insensitive debt and funding dry-ups
Session 4. Adverse selection and information frictions
Session 5. Industrial organization of banking
Session 6. Central banks and monetary policy transmission
Session 7. Bank regulation
Session 8. Banks versus markets