Banking and Financial Institutions

The purpose of this course is to provide you with a basic understanding of the connections between money, the financial system, and the broader macroeconomy. We will examine the economics of modern financial institutions (e.g. banks), including how they are organized, the products and financial services they offer, the risks they take, why and how they are regulated, and how this has changed over time. We will develop a conceptual framework that will allow us to assess how recent financial regulations as well as innovations in finance (e.g., securitization, fintech, cryptocurrencies) may influence the macroeconomic, financial, and business environment.

• Course Orientation
• You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
• Module 1: Money and Finance
• This module will provide a broad overview of money, the financial system, and how this all connects with real economic activity.
• Module 2: Modern Banking
• In this module, we are going to zoom in on the business model of modern banks.
• Module 3: Risk and Return
• In this module, we are going to focus on the sources of profit at modern banks and the various risks surrounding these profits.
• Module 4: Regulation
• In this Module we are going to study why the government regulates banks, and what this regulation looks like in practice.