COURSE OUTLINE
Microeconomics of Banking
1. General
School
Academic Unit
Level of Studies
Course code
Semester
Course Title
Idependent Teaching Activities
Weekly Teaching Hours
Credits
Course Type
Prerequite Courses
Language of Instruction and Examinations
Is the course offered to Erasmus Students?
Url (Eclass)
2. Learning Outcomes
Learning Outcomes
This course introduces the microeconomic foundations of modern banking and financial intermediation. We emphasize the presentation of models under asymmetric information. In this context, we present models that contemplate the incentives in debt contracts, the decision-making of bank managers, and the role of regulatory authorities for financial stability.
With the successful completion of the course, students will be sufficiently capable to
- understand and apply the microeconomic analysis in the context f credit, and especially of banking markets
- assess the micro-foundations of banking markets in a strategic context
- understand the developments in the modern banking environment
General Competences
- Decision making,
- Working independently,
- Production of new research ideas
- Production of free, creative, and inductive thinking
- Production of critical thinking
3. Syllabus
- Overview of microeconomic theory
- Market structure of banking sector. The Klein-Monti model
- Credit rationing
- The bank as a liquidity provider. The Diamond-Dybvig model
- The transmission of financial crises
- Spatial models of banking
- Moral Hazard in debt contracts
- Adverse selection in debt contracts
- The OLG model
4. Teaching and Learning Methods - Evaluation
Delivery
Use of Information and Communications Technology
- Interaction in class with students.
- Use of ICT in teaching.
- Use of ICT in problem solving
Teaching Methods
Activity
Semester Workload
Student Performance Evaluation
Final exam 100%
Open book exam
Language of evaluation: Greek
5. Attached Bibliography
Suggested Bibliography
Dimitris Voliotis, Lecture Notes