The course aims at describing the structure of financial intermediaries, and in particular banks, and the tools to manage interest rate risk.
Description / Program
We begin by defining the various types of financial intermediaries, their typical balance sheet and risks they face. We then describe models to quantify the amount of interest rate and liquidity risk that is typically faced by banks.
Learning Method / Style of Lessons
Lectures will alternate between discussion of new theoretical material and exercise sessions.
Grading is based on an in-class, closed-book final and take-home assignments.
Lecture notes will be made available on the course website. The recommended textbook for the course is “Financial Institution Management” by A. Saunders and M. Cornett