Universität Wien FIND

040054 KU Banking and Financial Intermediation 1 (MA) (2022W)

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


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


max. 100 participants
Language: English



DI 22.11.2022_09.45-13.00_Digital
DI 29.11.2022_09.45-13.00_Digital
DI 06.12.2022_09.45-13.00_Digital
Di 13.12.2022_09.45-13.00_Digital
FR 16.12.2022_09.00-10.30_Digital Midterm exam

DI 10.01.2023_09.45-13.00_Digital

DI 17.01.2023_11.30-14.45_Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock / Guest Lecture: Fintech (Dr. Roberto Pinto, University of Lancaster)

DI 24.01.2023_09.45-13.00_Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock / Guest Lecture: Bank Regulation (Dr. Philipp Kaiser-Hiebinger, FMA)

DI 31.01.2023_09.45-13.00_Digital Final Exam


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 one guest lecture. T
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.
Course Content
Session 1: Introduction: Why are financial intermediaries useful?
Liquidity Creation by banks
Session 2: The role of banks in resolving informational frictions (delegated monitoring)
Session 3: Relationship banking: Theory and Empirics
Midterm Exam
Session 4: Introduction to the theory of bank regulation
Session 5: Fintech (by Dr. Roberto Pinto, Lancaster University) + Wrap-up and exam preparation
Session 6: PwC Guest Lecture: The Future of Banking
Final Exam

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:
50% Mid-term Exam
50% Final Exam

Examination topics

All lecture materials and paper presentations.

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: Tu 06.12.2022 11:08