AØKA08069U  Economics of Banking (F)

Volume 2017/2018
Education

MSc programme in Economics – elective course
The course is part of the Financial line at the MSc programme in Economics,   symbolized by ‘F’.

 

The PhD Programme in Economics at the Department of Economics - elective course with resarch module (PhD students must contact the study administration and the lecturer in order to write the research assignment)

Content

The course covers two aspects of the topic, microeconomics of banking and risk management. In the microeconomics part, teaching starts with discussing key competences of banks, proceeds to fundamental aspects of banking such as the loan contract and credit rationing, discusses liquidity problems and bank runs, and ends up with a treatment of bank regulation involving the roles of central banks, deposit insurance and financial supervision authorities. In the risk management part, the course covers the basics of risk management in banks, measurement of risk, and then discusses the different types of risk occurring in banking, namely liquidity risk, interest rate risk, market risk, credit risk, and operational risk. For each of the risk types, the course covers the measurement of risk as well as methods for reducing risk.

Course Outline:

Introduction: Key competences of banks

Types of financial intermediation; basics of risk management

The loan contract; interest rate risk

Rationing in the credit market; market risk

Securitization and shadow banking

Credit risk

Payments and its impact on banking

Competition and risk taking

Irregularities in banking

Liquidity crises and bank runs; operational risk

Deposit insurance

Lenders of last resort

Reorganizing and closing banks

The Basel regulations

Learning Outcome

After completing the course, the student should be able to:

Knowledge:

  • Identify and assess the roles of banks in the financial sector, related to the basic problems of asymmetric information in its different forms,

  • know the basic principles of risk management and of risk measures, as well as the basic organisation of risk management in a bank,

  • Understand the causes of bank runs and bank panics, knowledge of different institutional setups designed for coping with bank runs,

Skill:

  • Select relevant theories and analyze problems related to financial intermediation,

  • Evaluate alternative methods for managing risk in banks,

  • Give suggestions for suitable regulation in the financial sector,

Competences:

  • Assess properties of credit markets, designing improvements of the contract structure,

  • Give advice for the regulation of financial intermediation and for the prevention of financial crises.

 

We use the textbook

H.Keiding, Economics of Banking, Palgrave-Macmillan 2015.

Schedule:
2 hours lectures 1 to 2 times a week from week 6 to 21 (except holidays).

The overall schema for the Master can be seen at
https:/​/​intranet.ku.dk/​ECONOMICS_MA/​COURSES/​COURSECATALOGUE-F18/​Pages/​default.aspx


Timetable and venue:
To see the time and location of lectures please press the link/links under "Se skema" (See schedule) at the right side of this page (E means Autumn, F means Spring).

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku1718/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F18; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
at the computers of University of Copenhagen. The exam assignment is given in English and must be answered in English.
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Exam registration requirements

none

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Aid
Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
The course can be selected for external assessment.
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Exam period

The exam takes place

May 28, 2018

at the exam venues of the university.

The exact time of the exam will be informed in the Self-Service at KUnet.

 

For enrolled students more information about examination, rules, exam schedule, venue etc. is available at the intranet for master students (UK)andmaster students (DK)

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Re-exam

The written reexam takes place

August 10, 2018

at the exam venues of the university.

If only a few students have registered for the written re-exam, the reexam might change to an oral exam including the date, time and place for the exam, which will be informed by the Examination Office.

 

For enrolled students more information about reexamination, rules, schedule, venue etc. is available at the intranet for master students (UK) and master students (DK).

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • Total
  • 206