FIN 590: Financial Institutions I

no offering in fall

This course provides an in-depth look at financial institutions and the role they play for financial markets today. The course will address questions such as: Which financial institutions exist? Why do they exist? What risks do they face? How do they manage those risks? How does the behavior of financial institutions impact financial markets and asset prices? How does their behavior impact the economy at large? How should we regulate financial institutions? The course Financial Institutions I will put emphasis on the analysis of banks.

Learning outcomes
After completing this course, students will have a thorough understanding of the economic reasons for the existence of financial institutions. Students will understand the eco-system of financial institutions and their role in the global financial markets. Students will gain knowledge about what risks managers in financial institutions face and how they manage those risks. Students will also learn about current approaches and proposals for regulating financial institutions.

Necessary prerequisites

Recommended prerequisites
Every student participating in this course should have completed the equivalent of the 2-semester finance module, which is part of the Mannheim Bachelor program. The lectures generally assume basic knowledge in accounting (balance sheets, income statements, financial ratios), finance (present value methods, portfolio theory, CAPM), mathematics (calculus, optimization) and statistics (mean, variance, standard deviation, univariate and multivariate regressions).

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS9 SWS
ECTS credits4
Graded yes
Form of assessmentWritten exam (60 min)
Restricted admissionno
Further information
Performing lecturer
Prof. Dr. Oliver Spalt
Prof. Dr. Oliver Spalt
Frequency of offeringFall semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. Bus. Edu., M.Sc. Econ., M.Sc. Bus. Inf., M.Sc. Bus. Math., MAKUWI
Preliminary course work
Program-specific Competency GoalsCG 1
LiteratureGreenbaum, S. I., Thakor, A. V., & Boot, A. W. (2019). Contemporary financial intermediation. Academic Press.
Course outlineIntroduction
Financial Intermediation Basics
Bank Risks: Interest Rate Risk
Bank Risks: Liquidity Risk
Bank Risks: Lending and Credit Risk
Funding of Banks: Deposits
Bank Capital Structure
Regulating Banks
Crisis of 2008