• Graduate Program
    • Why study Business Data Science?
    • Program outline
    • Courses
    • Course registration
    • Admissions
    • Facilities
      • Student Offices
      • Location
      • Housing
      • Student Council
  • Research
  • News
  • Events
    • Events Calendar
    • Events archive
    • Summer School
      • Behavioral Decision Making
      • Deep Learning
      • Foundations of Data Analysis and Machine Learning in Python
      • Introduction to Genome-Wide Data Analysis
      • Reinforcement Learning
      • Tinbergen Institute Summer School Program
  • Alumni
Home | Courses | Banking
Course

Banking


  • Teacher(s)
    Enrico Perotti, Spyridon Terovitis
  • Research field
    Finance, Finance
  • Dates
    Period 1 - Aug 30, 2021 to Oct 22, 2021
  • Course type
    Field
  • Program year
    Second
  • Credits
    3

Course description

The course reviews the literature on financial intermediation and is relevant for students interested in finance, macroeconomics and governance. It combines a classic contractual approach with recent work on system‐wide risk creation. Drawing from the lesson of the crisis, it focuses on the risk transformation role of banks and shadow banks and the sources of endogenous credit cycles and instability. A key goal is to offer foundations for micro and macro prudential policy reform, drawing from models of opportunism, risk externalities or behavioral biases. Topics include debt optimality, moral hazard in risk choices, financial externalities, maturity and liquidity risk transformation, endogenous risk, induced runs, demand for safety, and their implications for capital and liquidity regulation.

Prerequisites

Recommended: Contract Theory, Corporate Finance, Financial Crises, Behavioral Finance

Course literature

Primary reading
- Selected papers.