Checking date: 02/10/2018


Course: 2018/2019

Risk management - central banks
(15913)
Study: Master in Finance (261)
EPE


Coordinating teacher: MARTINEZ MIERA, DAVID

Department assigned to the subject: Department of Business Administration

Type: Electives
ECTS Credits: 3.0 ECTS

Course:
Semester:




Students are expected to have completed
Corporate Finance
Competences and skills that will be acquired and learning results.
Students will understand the role of banks in the economy and the challenges faced by regulators. They will be able to asses the positive and negative consequences of bank regulation and their impact on financial stability. Professors: 1) David Martinez Miera (Uc3m, PhD)
Description of contents: programme
1. Bank Runs 1.1. The Diamond-Dibvig Setup 1.2. How to prevent bank runs 2. The Role of Informed Financial Intermediaries 2.1. The Hölmstrom-Tirole Setup 2.2. The role of net wealth 2.3. The Debt Overhang problem 2.4. The dark side of deposit insurance 3. Competition and Bank Risk 3.1. The Allen and Gale setup 3.2. The Boyd and De Nicolo critique 4. Bank Capital Regulation 4.1. Risk Insensitive Capital Regulation 4.2. Risk Sensitive Capital Regulation 5. Macroprudential Regulation 5.1. Countercyclical Capital Requirements 5.2. Current developments on macroprudential policies
Learning activities and methodology
Teaching will by done using power point and recommended readings. Students will also be expected to read some proposed readings and will have to do some exercises at home and in class. Office hours: On an appointment basis
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40
Basic Bibliography
  • Franklin Allen and Douglas Gale. Comparing Financial Systems. MIT PRESS. 2000
  • Xavier Freixas and Jean Charles Rochet. Microeconomics of Banking. MIT PRESS. 1997

The course syllabus and the academic weekly planning may change due academic events or other reasons.