GRA 6546 Financial Institutions and Crises

GRA 6546 Financial Institutions and Crises

Course code: 
GRA 6546
Department: 
Finance
Credits: 
6
Program of study: 
Master of Science in Finance
Course coordinator: 
Charlotte Østergaard
Product category: 
Master
Portfolio: 
MSc in Finance
Semester: 
2020 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

This course seeks to provide a comprehensive overview of international credit markets and some of the important crises that have occurred in the last century (esp. 1930s and the 2008 financial crisis). It covers the financial instrument and institutions that exist and operate in credit markets, with a special emphasis on the role of banks, but also considers other financial institutions such as mutual funds, hedge funds, and government sponsored entities.  Credit provision in the form of bank lending, securitization and structured financial products such as credit derivatives and CDOs will be studied. The role of government subsidies and regulations, and how these may impact market participants incentives and behaviour will also be adressed.
The course contains a mix of theory, institutional aspects and case studies of actual events.

Learning outcomes - Knowledge
  1. To get an overview of credit markets and the financial institutions operating in credit markets.
  2. To understand how the asymmetric information in credit market make these markets different from other markets and gives rise to moral hazard and adverse selection problems.
  3. To learn about sources of financial crises.
  4. To understand the motivation for financial regulation and the development of sustainable policies that address fundamental frictions in financial markets.
Learning outcomes - Skills
  1. Ability to identify concrete situations of adverse selection or moral hazard.
  2. Ability to analyse and discuss  in a structured and "precise" manner.
General Competence
  1. Familiarity with institutional characteristics of international credit markets and financial institutions.
  2. Familiarity with the economics of asymmetric information.
Course content

(Details may vary from year to year)

  1. Credit markets and asymmetric information
  2. Banks and other financial intermediaries
  3. Securitization and credit derivatives
  4. Government subsidies and regulations
  5. Major financial crises (recent and historical)
  6. Case study(ies)
Teaching and learning activities

1. Lectures with built-in class discussions.

2. Hand-in group work of cases on financial crisis and regulation.

3. Pursuant general class discussion of the cases.   

4. Guest lecture (e.g., financial regulator or industry)

Software tools
No specified computer-based tools are required.
Additional information

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 0-100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course. You will find detailed information about the point system and the cut off points with reference to the letter grades when the course starts.

At resit, all exam components must, as a main rule, be retaken during next scheduled course.

Qualifications

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA65461
Grading scale:
Point scale
Grading rules:
Internal examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
20No2 Week(s)Group (1 - 5)Case 1
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA65461
Grading scale:
Point scale
Grading rules:
Internal examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
20No2 Week(s)Group (1 - 5)Case 2
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA65461
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
60Yes3 Hour(s)
  • Bilingual dictionary
Individual Written examination under supervision.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:20
Invigilation:No
Grouping (size):Group (1-5)
Support materials:
Duration:2 Week(s)
Comment:Case 1
Exam code:GRA65461
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:20
Invigilation:No
Grouping (size):Group (1-5)
Support materials:
Duration:2 Week(s)
Comment:Case 2
Exam code:GRA65461
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:60
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Written examination under supervision.
Exam code:GRA65461
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Type of Assessment: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Sum workload: 
0

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.