Financial Intermediation
People
Course director
Assistant
Description
The course describes the structure of financial intermediaries, in particular banks. It is organized into two parts.
Part I: Definition of the various types of financial intermediaries, their typical balance sheet and risks they face. Study of models to quantify the amount of interest rate and liquidity risk that is typically faced by banks. This Part will end on April 2, 2026.
Part II: Analysis of models for quantifying credit risk. Outline of the various approaches used by banks to measure the risk of their loan portfolios. Introduction to instruments to manage these risks, such as credit derivatives and securitization.
Objectives
The course aims to describe the structure of financial intermediaries, with a focus on banks.
Teaching mode
In presence
Learning methods
Lectures and exercise sessions.
Please refrain from using laptops or any portable device for web surfing, chatting, etc.
Active participation in class discussion is highly encouraged.
Examination information
Grading is based on an in-class final exam (80%) and group case assignments (20%). That is, Course grade = 80% × final grade + 20% × average of assignment grades
Bibliography
- Mishkin, F., Eakins, S.. Financial Markets and Institutions. Pearson Ed., 2018.
- Saunders, Anthony, Cornett, Marcia Millon, Erhemjamts, Otgo. Financial institutions management: a risk management approach. Eleventh edition, international student edition. New York, NY: McGraw-Hill, 2024.
Education
- Master of Science in Economics in Finance, Lecture, 1st year
- Master of Science in Financial Technology and Computing, Lecture, SFI accreditation (min 45 ECTS), 1st year