Term:Summer

Course Code:SQ00213C3H

Campus:Central Campus

Academic Organization:School of Economics

Credit:2（32 teaching hours）

Course Components:Lectures Required

Course Description:

The course seeks to enhance students' understanding of why banks exist and what economic roles they play, the risks faced by banks in lending process, off-balance sheet banking, and banking regulation. The aim of the module is twofold. First of all, the module should help students to understand the economics of financial contracting---how financial frictions such as agency cost and market incompleteness shape financial contracts and institutions in banking. Then, guided by the theoretical perspectives, the discussion will cover specific issues such as the source of bank risk, risk management, and some contemporaneous debates in banking regulation. The approach is mostly analytical rather than descriptive.