Universität Wien FIND

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040119 KU Banking and Financial Intermediation 1 (MA) (2019S)

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



max. 50 participants
Language: English


Classes (iCal) - next class is marked with N

Saturday 09.03. 09:45 - 13:00 Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Saturday 16.03. 09:45 - 13:00 Hörsaal 4 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 18.03. 15:00 - 18:15 Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Monday 25.03. 15:00 - 18:15 Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Monday 01.04. 16:00 - 19:15 Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Monday 08.04. 15:00 - 18:15 Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Saturday 13.04. 09:45 - 13:00 Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß


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 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; industrial organization view of the banking systems. The module places emphasizes the theoretical foundations of the microeconomics of banking and how these theories guide researchers to formulate empirical hypotheses and testing them in the data..
Learning objectives and competencies
Upon completing this course students 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.
The course is held in English.
Course Contents
Session 1: Why banks are useful? Introduction
Liquidity Creation by banks
Session 2: The role of banks in resolving informational frictions
Session 3: Relationship Banking (Theory)
Session 4: Relationship Banking (Empirics)
Midterm exam
Session 5: Competition and Financial Stability
Session 6: Cryptocurrencies (Guest lecture: Roberto Pinto, University of Lancester)
Session 7: Introduction to bank regulation
Final exam

Assessment and permitted materials

Course format and methodological approach
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.
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 use. Emailing, facebooking, tweeting, chatting, skyping, internet surfing, etc. should NOT be done during classes. Doing these would penalize strongly your grade on class participation.

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.

Minimum requirements and assessment criteria

30% Mid-term Exam

10% Participation

60% Final Exam

Examination topics

Reading list

The main reading material for the course is contained in:

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.

Association in the course directory

Last modified: Mo 07.09.2020 15:28