5th or 7th Semester
Microeconomics of Banking
At A Glance
Course Code
ΧΡΤΜΙ01
Course Type
Special Background
Teaching Language
Greek
Is the course offered to Erasmus Students?
Teaching Delivery
Face-to-face
Use of Information and Communications Technology
- Interaction in class with students.
- Use of ICT in teaching.
- Use of ICT in problem solving
Independent Teaching Activities
Type
Lectures
Weekly Teaching Hours
4
ECTS Credits
7,5
Course Outlines
🇬🇷 Greek
🇬🇧 English
External Links
Student Performance Evaluation
Final exam 100%
Open book exam
Language of evaluation: Greek
Learning Outcomes
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
General Competences
- Decision making,
- Working independently,
- Production of new research ideas
- Production of free, creative, and inductive thinking
- Production of critical thinking
Syllabus
- 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
Bibliography
Dimitris Voliotis, Lecture Notes
Undergraduate Courses
1st Semester
2nd Semester
3rd Semester
4th Semester
7th Semester
Winter Elective
Spring Elective
