Unit name | Banking |
---|---|
Unit code | EFIMM0006 |
Credit points | 15 |
Level of study | M/7 |
Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
Unit director | Dr. Fabiana Gomez |
Open unit status | Not open |
Pre-requisites |
None |
Co-requisites |
If taking this unit, can not take: EFIMM0054 - Principles of Financial Intermediation OR EFIMM0053 - Banking Regulation and Financial Stability OR EFIMM0052 - Banking Management and Risk Management |
School/department | School of Accounting and Finance - Business School |
Faculty | Faculty of Social Sciences and Law |
The objective of the course is to understand the role of banks in the economy and the sources of fragility of the banking sector. It begins by introducing the main functions of banks in the economy. This is followed by the study of the economic literature about the existence of financial intermediaries. Then, the causes of financial crises are analyzed: financial panics, bubbles, contagion and endogenous risk. Next, the course focuses on the Subprime crisis to analyze its causes and consequences. The course ends with an analysis of banking regulation.
Lectures and workshops.
All of the ILOs will be assessed by a 2 hour exam (80%)
ILOs 2, 3 and 7 will be also assessed by a written group course work (20%). All students in a group will be awarded the same mark. The course work will have a length of 1500 words, and groups are made up of up to 4 students. The objective of the coursework is to give students the opportunity to discuss and confront their opinions with their peers in light of the topics covered in the course.
Freixas and Rochet, Microeconomics of Banking, 2nd edition, 2008 MIT Press
Saunders and Cornett, Financial Markets and Institutions, 6th edition, 2015, McGraw Hill
Resti and Sironi, Risk Management and Shareholders Value in Banking, 2007, Wiley
Introduction to Banking by Casu, Girardone and Molyneux, 2nd edition, Pearson 2015