Accueil - Banking and financial stability ( BANK)
Banking and financial stability ( BANK)
Code interne : (BANK)
Programme de cours :
• Introduction. Basic concepts in banking and finance. Direct finance vs indirect finance.
Specificity of banking and financial regulation.
• Fractional Reserve Banking System. Bank runs and bank panics. Fundamental vs.
beliefs-based bank runs. Regulatory and institutional responses to financial instability.
• Narrow banking.
• Liquidity provision and the lender-of-last-resort function of the central bank.
• Financial crises. Business-cycle view of bank runs. Efficient bank runs.
• Bail-outs vs. bail-ins and financial fragility.
• Aggregate uncertainty and assets’ firesales.
• Optimal capital and liquidity regulation.
• The Diamond-Dyvbig model. Extensions with capital requirements, deposit insurance, bail-outs.
• Central-bank digital currencies. Impact on banking and financial stability.