Banking and Financial Institutions

About this course

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.

What you will learn

• Appreciate how money and finance can benefit the real economy.
• Describe how modern banks earn a profit.
• Compare and contrast banks with other providers of debt finance and payments.
• Explain why financial regulations are needed and their impacts.