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.
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.
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 learning||Contact hours||Independent study time|
|Lecture||2 SWS||9 SWS|
|Form of assessment||Written exam (60 min)|
Prof. Dr. Oliver Spalt
Prof. Dr. Oliver Spalt
|Frequency of offering||Fall semester|
|Duration of module||1 semester|
|Range of application||M.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., M.Sc. Wirt. Math., MAKUWI|
|Preliminary course work||–|
|Program-specific Competency Goals||CG 1|
|Literature||Greenbaum, S. I., Thakor, A. V., & Boot, A. W. (2019). Contemporary financial intermediation. Academic Press.|
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
Crisis of 2008