BANKING AND FINANCIAL STABILITY
BackgroundBanking is one of the most complex areas of modern economies. Flawed understanding, mismanagement, and bad regulation of banks have caused the Great Financial Crisis of 2007-2010 and the worst economic crisis in Europe in decades. This course will shed some light on the theory of banking and recent empirical insights into the functioning of banks. Starting from a thorough discussion of basic conceptual frameworks it will discuss elements of shadow banking, financial stability, and bank regulation.
Why this courseThe course provides an introduction to the conceptual foundations of banking and explores the workings of banks in modern economies, by looking at problems of credit intermediation, liquidity provision, maturity transformation, relationship lending, and bank competition. These classic themes were all present in the Great Financial Crisis, and we study some of their implications in the context of securitisation, repo markets, and shadow banking more generally. We will look specifically at the roots of the European debt crisis that started in 2009.
How will the course work?Most topics will be introduced by the lecturer in prepared lectures, followed by class discussions that will draw on the participants’ own experience. Two sessions will be devoted to exercises that will give participants the possibility to get acquainted with some basic conceptual tools.
Who is the training for?Practitioners in research departments of banks, regulatory authorities, central banks, as well economists dealing with policy making at the EU or in national governments.
What do you need to know to follow this courseParticipants are expected to understand economics at the level of a Bachelor’s degree. Non-economists are welcome, but are expected to invest into the necessary theoretical and empirical tools as we go along.
What you’ll learnAt the end of this course you will:
- Appreciate the complexity of banking in its various guises
- Understand some of the problems that caused the financial crises of the past decade
- Have acquired some tools for designing sensible banking regulation
Meet the course instructorErnst-Ludwig von Thadden is professor of economics and finance at the University of Mannheim. From 1995 to 2004 he was professor at the University of Lausanne (Switzerland) and since 2000 director of the FAME doctoral program in finance at the Universities of Lausanne and Geneva. He obtained his PhD in economics at the University of Bonn (Germany), after an undergraduate degree in mathematics and economics at the University of Heidelberg (Germany) and an MPhil at the London School of Economics (U.K.). He has published in academic journals ranging from the Journal of Political Economy to the Journal of Finance, and was the managing editor of the Journal of Financial Intermediation from 2005 to 2008. Ernst-Ludwig von Thadden is Research Fellow at the Center for Economic Policy Research (London), former Resident Fellow of the Center for Advanced Study in the Behavioral Sciences in Stanford (CA), was a council member of the European Economic Association from 2006 – 2010, is Fellow of the European Corporate Governance Institute (Brussels), and has held the Bertil Danielsson Distinguished Visiting Chair at the Stockholm School of Economics and the Gothenburg Business School (Sweden). He is a member of the Heidelberg Academy of Arts and Sciences and fellow of the European Economic Association. From 2005 to 2011 he was the founding director of the Mannheim Graduate School in the Economic and Social Sciences and lead manager of the Graduate School’s research grant in the German “Initiative of Excellence”. He was, i.a., scientific coordinator of the European Research and Training Network “Understanding Financial Architecture”, and of the Swiss National Science Foundation national research network NCCR in finance. He is a member of the Scientific Advisory Committee of the European System Risk Board (Frankfurt) and has advised public institutions such as the World Bank, and private firms. His research covers corporate finance, banking, international finance, political economy, contract theory, bounded rationality, and other areas. Since October 2012 he has been president of the University of Mannheim.
1500 € – Public Authorities (e.g. National Competent Authorities, Central Banks) and European Institutions*
2000€ – Private Sector
850€ – Students (with certificate of studies)**
* In case of registration of 2 participants from the same institution a third person may attend for free. For more details, please contact firstname.lastname@example.org
** Limited places are available, please apply through the registration form.
Practical information for the registered participants
Participants are requested to bring their own laptop.
On arrival, you will be provided with temporary wi-fi access for the whole duration of the course.