FINANCIAL INTERMEDIATION



B.WIWI-BWL.0097




Instructor:

Dr. Paolo Krischak











Expected prior knowledge:

Introduction to Finance, Capital Markets and Valuation




Examination requirements:


  • Demonstrate a profound knowledge of the functions financial intermediaries provide and the underlying reasons for their existence.
  • Document an understanding of viable reasons for the promotion of economic growth through the financial system.
  • Demonstrate the ability to explain the different risks faced by financial intermediaries.
  • Show a profound understanding of methods and techniques used to identify and mitigate these risks.
  • Critically assess the different causes that led to the Great Financial Crisis.
  • Demonstrate an understanding of major change drivers in financial intermediation.





    Qualification objectives/skills:

    After successful completion of the course, students will be able to:


    • Understand the underlying mechanisms of financial intermediation and the importance of asymmetric information and moral hazard.
    • Explain and critically discuss the functions and services financial intermediaries provide and the role they play in the financial system.
    • Apply methods to analyze and mitigate the various risks faced and posed by financial intermediaries.
    • Understand the interactions between nonfinancial and financial companies and the financial system’s interconnectedness and vulnerabilities.
    • Critically assess and explain the different causes that led to the Great Financial Crisis.
    • Understand and discuss major change drivers to financial intermediation, such as financial innovation and green finance.
    • Apply their knowledge to critically take part in related policy discussions.





    Lecture content:


      1. Basic Concepts

      2. Theoretical Framework of Financial Intermediation

      3. Major Banking Risks

      4. Financial Crisis and the Future of Financial Intermediation