Banking Economics

Recommended Prerequisites

Monetary Economics

Teaching Methods

Theoretical-practical sessions using expository and interactive methods and audiovisual techniques. These sessions also include the individual/group resolution of practical exercises and group discussion of problems in a real world framework. The presentation of indicators from the Portuguese and European banking sectors enhances student motivation and the discussion of the issues addressed. The theoretical-practical sessions are complemented with periods of office hours (individual assistance).

Learning Outcomes

The fundamental objective of this curricular unit is to provide students with basic knowledge about the functioning of the banking sector and its role and importance in financing the economy.

After attending this course, the student should be able to:

- To identify the distinctive features of the intermediation activity;

- To analyze the characteristics of the Portuguese and European banking sectors and their challenges and trends (specially, their role in sustainable development and the response to climate change);

- To recognize the factors that influence and determine the banking activity;

- To analyze the formation of prices and quantities in the banking sector, depending on the type of market;

- To recognize and assess the various risks present in banking activity;

- To understand the justification and principles of regulation of the banking sector at national and international level.

Work Placement(s)

No

Syllabus

1. Banking intermediation.

2. The importance of banking intermediation.

3. The theory of the banking firm

4. The interest rate transmission mechanism

5. Credit rationing

6. Securitization

7. Banking management: balance sheet structure, performance and risks.

8. Banking crisis

9. Bank regulation and supervision

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

CAO, Jin (2021). The Economics of Banking. Routledge.

CASU, Barbara; GIRARDONE, Claudia; MOLYNEUX, Philip (2015). Introduction to Banking. Harlow : Prentice Hall/Financial Times, 2^nd edition.

ECB. Financial Stability Review [Em linha]. https://www.ecb.europa.eu/pub/financial-stability//fsr/html/index.en.html

HANDBOOK of european financial markets and institutions. Ed. Xavier Freixas, Philip Hartmann, Coin Mayer. Oxford : Oxford University Press, 2008.

KEIDING, Hans (2015). Economics of Banking. Red Globe Press.

MATTHEWS, Kent; THOMPSON, John (2014). The Economics of banking. Chichester: John Wiley & Sons, 3^rd edition.

PORTUGAL. Banco de Portugal - Relatório de estabilidade financeira [Em linha]. Lisboa : Banco de Portugal, 2022, Junho. https://www.bportugal.pt/sites/default/files/anexos/pdf-boletim/ref_06_2022_pt.pdf