Economics of Financial Markets and Intermediation
Undergraduate: Level 6
Monday 15 January 2024
Friday 22 March 2024
13 September 2023
Requisites for this module
(EC115 or BE300 or IA156 or MA101) and EC202
BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
MECNL131 Financial Economics,
MECNLB31 Financial Economics (Including Placement Year),
MECNLB32 Financial Economics (Including Year Abroad),
BA L147 Financial Economics and Accounting (Including Placement Year),
BA L148 Financial Economics and Accounting,
BA L149 Financial Economics and Accounting (Including Year Abroad),
BA LX14 Financial Economics and Accounting (Including Foundation Year)
The objective of this course is to study the workings of the financial system, as constituted by the financial contracts and securities that are traded in markets, devoting special attention to financial intermediaries. We will analyze the reasons why and how money and credit flows from savers to entrepreneurs to create value.
Through a good understanding of the micro-structure of credit flows, students should get a better grasp of the macroeconomic consequences of regulation, monetary, and central bank balance sheet policies. The approach relies on a discussion of facts together with the analysis of formal, albeit simple, models.
The aims of this module are:
- To study the workings of the financial system, as constituted by financial contracts, securities traded in markets, the role of financial intermediaries.
- To analyze the reasons why and how money and credit flows from savers to entrepreneurs to create value.
- Through a good understanding of the micro-structure of credit flows, to get a better grasp of the macroeconomic consequences of regulation, monetary, and central bank balance sheet policies. The approach is resolutely analytical and a few simple mathematical models will be covered in class.
By the end of this module, students will be expected to be able to:
- Evaluate empirical applications, concerning how financial systems operate and the consequences of regulation and central bank policies.
- Learn what are financial intermediaries and why they exist.
- Identify the main banking risks and propose management tools for these risks.
- Comprehend the implications of on and off balance sheet items.
- Grasp the implication of regulations on the funding and activities of banks and other intermediaries.
- Analyze the effects of banking regulation.
- Understand the importance of liquidity and its determinants.
Other employability skills also include the development of:
- Awareness of the operation of financial markets in advanced economies;
- Clear, concise and well organised answers to assigned questions;
- Personal time management, target-setting to achieve the timely completion of term assignments and other reading assignments.
No additional information available.
The module will be delivered via:
- Two lectures
- One (optional) class per week
in one term.
Feedback for this module will occur through class meetings where we will go over the answers to problem sets and where you will be able to ask questions about your own method of solution; answers that will be posted on moodle that will give you written guidance on the appropriate method to approach the problems on the problem sets, midterm tests and mock final; and academic support hours where any additional questions can be addressed. You should be sure that you use these methods to understand how to improve your own performance.
Lecture slides, problem sets, mock final and feedback (including solutions) are made available online via Moodle.
The above list is indicative of the essential reading for the course.
The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students.
Further reading can be obtained from this module's reading list
Assessment items, weightings and deadlines
|Coursework / exam
||EC372 Mid-term test
||Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period)
||Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period)
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Module supervisor and teaching staff
Prof Piero Gottardi, email: firstname.lastname@example.org.
Lectures: Prof Piero Gottardi / Classes: TBC
For further information, send an email message to email@example.com.
Mr Pedro David Matos Serodio
Mr Teng Ge
Available via Moodle
Of 377 hours, 27 (7.2%) hours available to students:
350 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
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