ECONOMICS OF BANKING

ECONOMICS ECONOMICS OF BANKING

0222200048
DEPARTMENT OF ECONOMICS AND STATISTICS
EQF7
ECONOMICS
2022/2023

OBBLIGATORIO
YEAR OF COURSE 1
YEAR OF DIDACTIC SYSTEM 2018
SPRING SEMESTER
CFUHOURSACTIVITY
1060LESSONS
Objectives
THE COURSE PROVIDES THE BASIC TOOLS TO UNDERSTAND THE FUNCTIONING OF BANKS AND FINANCIAL INTERMEDIARIES, AS WELL AS ANALYSE THE MECHANISMS BEHIND THE LENDER-BORROWER RELATIONSHIP.
TO THIS AIM, THE COURSE PROVIDES AN OVERVIEW OF THE MAIN THEORIES OF FINANCIAL INTERMEDIATION, OF THE DETERMINANTS OF CREDIT RATIONING, OF THE FIRM'S CHOICE BETWEEN DIRECT AND INTERMEDIATED FINANCE, OF BANK STABILITY AND REGULATION.
STUDENTS WILL ACQUIRE THE ABILITY TO UNDERSTAND THE DETERMINANTS OF DEMAND AND SUPPLY OF CREDIT, AS WELL AS THE ANALYTICAL AND CONCEPTUAL TOOLS TO UNDERSTAND THE MAIN FEATURES OF FINANCIAL INTERMEDIARIES.
STUDENTS WILL BE ABLE TO INTERPRET THE DRIVERS THE THE BANKS' CREDIT POLICIES, OF THE FRAGILITY OF THE BANKING SYSTEM AND THE REGULATORY INSTRUMENTS.
Prerequisites
IT IS ADVISABLE TO TAKE THE EXAM OF MICROECONOMIA DEL SETTORE FINANZIARIO
Contents
THE MAIN THEORIES ON FINANCIAL INTERMEDIATION. DIRECT AND INDIRECT FINANCING. CREDIT ALLOCATION AND THE BANK-FIRM RELATIONSHIP. THE ROLE OF ASYMMETRIC INFORMATION IN CREDIT RATIONING. ADVERSE SELECTION. MORAL HAZARD. BANK FRAGILITY AND BANK REGULATION.
Teaching Methods
NO LESS THAN 25 LECTURES + 5 TUTORIALS. ALL CLASSES ARE TAUGHT IN ENGLISH.
INDIVIDUAL AND GROUP ACTIVITIES, SUCH AS TUTORIALS AND PRESENTATIONS, ARE ORGANISED DURING THE COURSE TO ASSESS THE STUDENT'S LEARNING PROCESS AND THE ABILITY TO APPLY THE KNOWLEDGE ACQUIRED TO PRACTICAL PROBLEMS.
Verification of learning
THE ACHIEVEMENT OF THE OBJECTIVES OF THE COURSE IS ASSESSED THROUGH A WRITTEN EXAM (PAPER EXAM IN ENGLISH) WITH MARKS EXPRESSED IN 30TH'S. THE MINIMUM GRADE FOR A PASS IS 18. THE EXAM LASTS 60 MINUTES AND AIMS AT VERIFYING, IN A TRANSPARENT AND OBJECTIVE WAY, THE LEVEL OF KNOWLEDGE AND UNDERSTANDING ACQUIRED BY THE STUDENT OF THE COURSE PROGRAMME. THE TEST IS STRUCTURED IN TWO THEORY QUESTIONS AND ONE EXERCISE. THE THEORETICAL QUESTIONS ARE DESIGNED TO EVALUATE THE STUDENT'S KNOWLEDGE OF THE PROGRAM AND THE UNDERSTANDING OF THE ECONOMIC CONCEPTS DEVELOPED THEREIN. SOLUTION OF THE EXERCISE REQUIRES THE DEVELOPMENT OF MODELS STUDIED DURING THE COURSE AND THE APPLICATION OF THE METHODOLOGIES ACQUIRED DURING CLASSES AND TUTORIALS.
THE STUDENT IS INFORMED OF THE MARK ASSIGNED TO EACH EXERCISE OR THEORETICAL QUESTION.
DURING THE WRITTEN EXAM, IT IS NOT ALLOWED THE USE OF TEXTS, COMPUTERS, CELL PHONES, TABLETS OR SMART WATCHES. IN CASE THE EXERCISES REQUIRED NUMERIC CALCULATIONS, A CALCULATOR MAY BE USED.
INDIVIDUAL AND GROUP ACTIVITIES, SUCH AS TUTORIALS AND PRESENTATIONS, ARE ORGANISED DURING THE COURSE TO ASSESS THE STUDENT'S LEARNING PROCESS AND THE ABILITY TO APPLY THE KNOWLEDGE ACQUIRED TO PRACTICAL PROBLEMS. UP TO 20% OF THE TOTAL GRADE CAN BE OBTAINED BY TAKING INTO ACCOUNT THE ATTENDING STUDENTS PERFORMANCE IN SUCH ACTIVITIES.
Texts
FREIXAS X. AND J.-C. ROCHET (2008), THE MICROECONOMICS OF BANKING , BOSTON: THE MIT PRESS, 2ND ED.
ALLEN, F, AND D. GALE (2007), UNDERSTANDING FINANCIAL CRISES, CLARENDON LECTURES IN ECONOMICS.
TIROLE J., THE THEORY OF CORPORATE FINANCE, MIT PRESS.
More Information
LECTURE SLIDES ARE PROVIDED DURING THE COURSE UPON REQUEST.
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