APPLIES TO ACADEMIC YEAR 2016/2017

DRE 4013 Banking

Responsible for the course
Charlotte Østergaard

Department
Department of Finance

Term
According to study plan

ECTS Credits
6

Language of instruction
English

Introduction
Please note that this course will be revised before it is offered again
This is a one-week intensive Ph.D. course on the role of banks in the economy. The course will offer both a theoretical and empirical perspective on the financial intermediation role performed by banks and will comprise both lectures and student presentation of scientific papers on banking.

Learning outcome
1. To understand how asymmetric information in credit markets are an important reason why financial institutions such as banks exist

2. To identify the economic functions performed by banks

3. To understand the regulation of banks and the moral hazard problems associated with that regulation

4. To understand the links between the banking sector and the real economy

5. To relate theory and empirical tests

6. To develop an understanding of applied cross-sectional and panel data methods used in research on banking

Prerequisites
Admission to a PhD Programme is a general requirement for participation in PhD courses at BI Norwegian Business School.

External candidates are kindly asked to attach confirmation of admission to a PhD programme when signing up for a course with the doctoral administration. Other candidates may be allowed to sit in on courses by approval of the courseleader. Sitting in on courses does not permit registration for courses, handing in exams or gaining credits for the course. Course certificates or conformation letters will not be issued for sitting in on courses

Compulsory reading
Books:
Freixas, X. and J.-C. Rochet. 2008. Microeconomics of Banking. 2. ed.. The MIT Press.

Recommended reading

Course outline
The course will cover the topics below (if time permits). A complete syllabus will be published in March/April and participants will be provided with a list of readings to be prepared prior to the start of the course.

1. Theories of financial intermediation

2. Bank runs, government intervention, and bank regulation

3. Coordination of international regulation

4. Relationship banking

5. The real effects of bank failures and crises

6. The real effects of financial deregulation and integration of banking markets

7. Interbank markets and the liquidity provision of banks.

Computer-based tools


Learning process and workload
Workload (6 ECTS)
Lectures 30 hours
Specified learning activities (including reading) 75 hours
Autonomous student learning (including exam preparation) 75 hours
Total 180 hours.