Undergraduate Studies
Academic Year 2025-26
Microeconomics of Banking
Files and Links
- Course Outline .pdf (Greek)
- Course Outline .pdf (English)
- Full Description @courses.xrh
- Link to e-class
5th or 7th Semester
ΧΡΤΜΙ01
Course id
7,5
ECTS
Special Background
Course type
This course introduces the microeconomic foundations of modern banking and financial intermediation. We emphasize the presentation of models under asymmetric information. In this context, we present models that contemplate the incentives in debt contracts, the decision-making of bank managers, and the role of regulatory authorities for financial stability.
With the successful completion of the course, students will be sufficiently capable to
- understand and apply the microeconomic analysis in the context f credit, and especially of banking markets
- assess the micro-foundations of banking markets in a strategic context
- understand the developments in the modern banking environment
- Decision making,
- Working independently,
- Production of new research ideas
- Production of free, creative, and inductive thinking
- Production of critical thinking
- Overview of microeconomic theory
- Market structure of banking sector. The Klein-Monti model
- Credit rationing
- The bank as a liquidity provider. The Diamond-Dybvig model
- The transmission of financial crises
- Spatial models of banking
- Moral Hazard in debt contracts
- Adverse selection in debt contracts
- The OLG model
