All programmes > Credit and Banking

Credit and Banking (B-KUL-D0O52A)

6 ECTSEnglish39 First term
Degryse Hans
OC Toegepaste economische wetenschappen FEB Campus Leuven

Aims

The goal of this course is that students understand the role and relevancy of banks in the economy using up to date micro-economic and macro-economic approaches both from a theoretical and empirical point of view. Students should understand how banks and borrowers interact and how this impacts on their financing conditions. Shocks to banks may lead to credit supply shocks and exacerbate credit rationing. Students should learn how bank runs can occur and how micro and macro-prudential regulatory views can influence systemic risk and financial instability.
After finishing this course, the student can:
- advice firms and other customers on how to optimally engage banks and financial markets in different micro and macro-economic situations
- develop arguments about costs and benefits of intense bank-customer interactions
- develop arguments on why bank runs occur and how these can be prevented
- design techniques to correctly measure the impact of shocks to credit supply
- distinguish between reasons for micro-prudential and macro-prudential regulation
- propose measures of systemic risk and financial instability
- understand regulation in banking

Previous knowledge

The course requires intermediate knowledge on corporate finance, financial markets and banking.

Is included in these courses of study

Activities

6 ects. Credit and Banking (B-KUL-D0O52a)

6 ECTSEnglishFormat: Lecture39 First term
Degryse Hans
OC Toegepaste economische wetenschappen FEB Campus Leuven

Content

The course will discuss the following topics on the basis of international textbooks
- Role and relevance of banks in the economy
- Bank-borrower-interactions
- Credit supply and rationing
- Systemic risk, financial instability and bank runs
- Regulation of banks: micro- and macro prudential views

Course material

Used course material:
Parts of international textbooks containing both theory and empirics
- Freixas and Rochet (2008), the micro-economics of banking, MIT Press
- Degryse, Kim and Ongena (2009), the microeconometrics of banking: methods, applications and results, Oxford University press

Toledo
- Toledo is being used for this learning activity

Language of instruction: more information

Het opleidingsonderdeel dient toegankelijk te zijn voor studenten van buiten het Nederlandse taalgebied.

Format: more information

Students should attend the lectures in which the course materials are discussed

Evaluation

Evaluation: Credit and Banking (B-KUL-D2O52a)

Type : Exam during the examination period
Description of evaluation : Written
Type of questions : Open questions
Learning material : None

Explanation


Features of the evaluation:
- the evaluation consists of a written, closed book exam with open questions

Determination of final grades:
- The grades are determined by the lecturer as communicated via Toledo and stated in the examination schedule. The result is calculated and communicated as a whole number on a scale of 20

Second examination opportunity:
- The features of the evaluation and determination of final grades are similar to those of the first examination opportunity, as described above.