Universität Wien
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040054 KU Banking and Financial Intermediation 1 (MA) (2019W)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

  • Tuesday 08.10. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 15.10. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 22.10. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 05.11. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 12.11. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 19.11. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 26.11. 15:00 - 18:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock

Information

Aims, contents and method of the course

The Financial Intermediation I course is an introductory course that forms the first part of a two-course sequence covering topics in Financial Intermediation. The aim of the course is to provide a broad conceptual and practical platform for analysing issues in Financial Intermediation.
This course commences with a brief theoretical foundation of intermediation theory, and then moves on to introduce students to key themes in financial intermediation such as the role of banks as delegated monitors; banks as liquidity providers; bank-borrower relationships and loan contracting; the industrial organization view of the banking systems and the reasons for regulation. The module places emphasis on the theoretical foundations of the microeconomics of banking and how these theories guide researchers to formulate empirical hypotheses and testing them in the data.
There will be two guest lectures. The first part of the session will cover the changes in the banking industry following the financial crisis of 2007-2009, including regulatory responses such as capital regulation, liquidity regulation and stress-testing. The second part will focus on the challenges of the digital era for banking and crypto-currencies.
Upon completing this course student should be able to:
• Understand the main functions of financial intermediaries
• Discuss the importance of these functions for the efficient resource allocation in the economy.

Assessment and permitted materials

The course “Financial Intermediation I” consists of 7 three hour sessions. Sessions consist of lectures, covering both theory and empirics.
What do I expect from you in class
This is an interactive course, where your active participation is required. Attendance is compulsory.
A learning area will be available in the Intranet (Moodle). There, you would find instructions for the sessions, communications, bibliography, etc. Please look at it a couple of times a week. Slides of the sessions will also be posted here, always BEFORE the class.
Laptop/tablets policy.
You are not supposed to use your laptop/tablets during case discussions. You have to be 100% focused in the discussions. You may use your laptops/tablets on the lectures/discussion sessions ONLY for academic purposes, emailing, facebooking, tweeting, chatting, skyping, internet surfing, etc. should NOT be done during classes. Engaging yourself in such activities would penalize strongly your grade on class participation.

Minimum requirements and assessment criteria

Attendance is COMPULSORY. The evaluation will be based on the following items:
40% Mid-term Exam
60% Final Exam
Up to 10% Bonus In-Class Participation

Examination topics

All lecture materials and paper presentations.
Session 1: Introduction: Why financial intermediaries are useful?
Liquidity Creation by banks
Session 2: The role of banks in resolving informational frictions (delegated monitoring)
Session 3: Relationship banking (Theory)
Session 4: Relationship Banking (Empirics)
Session 5: Introduction to the theory of bank regulation
Session 6: Cryptocurrencies & A practical introduction to regulation (Guest lecture)
Session 7: Final Exam

Reading list

The main reading material for the course is contained in:
• Lecture Notes
• Freixas, X. and Rochet, J.-C. (2008), Microeconomics of Banking, MIT Press.
• Gorton, G. and Winton, A. (2003), “Financial intermediation”, Handbook of the Economics of Finance, Vol. 1, 431–552.
• Greenbaum, S., Thakor A., and Boot, A. (2016), Contemporary Financial Intermediation, Elsevier Press.
• Research papers covered in the lectures.

Association in the course directory

Last modified: Mo 07.09.2020 15:19