Economics of Financial Markets and Intermediation
Undergraduate: Level 6
Monday 13 January 2020
Friday 20 March 2020
20 September 2019
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),
BA L147 Financial Economics and Accounting (Including Placement Year),
BA L148 Financial Economics and Accounting,
BA L149 Financial Economics and Accounting (Including Year Abroad)
No information available.
The objective of this course is to study the workings of the financial system, as constituted by financial contracts, securities, and markets as well 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 is resolutely analytical and a few simple mathematical models will be covered in class.
In this course students study formal models of financial intermediaries, financial contracts and markets, which allow them to evaluate empirical applications, concerning how financial systems operate and the consequences of regulation and central bank policies. In particular, they: (i) learn what are financial intermediaries and why they exist; (ii) can identify the main banking risks and propose management tools for these risks; (iii) comprehend the implications of on and off balance sheet items; (iv) grasp the implication of regulations on the funding and activities of banks and other intermediaries; (v) learn how to analyze the effects of banking regulation; (vi) understand the importance of liquidity and its determinants.
Other employability skills also include the development of (i) awareness of the operation of financial markets in advanced economies; (ii) clear, concise and well organised answers to assigned questions; (iii) personal time management, target-setting to achieve the timely completion of term assignments and other reading assignments.
No additional information available.
2 lectures and one (optional) class per week in one term.
Feedback, including a mark, will be provided for each piece of submitted work (assignment essays) via a feedback sheet. Students are also encouraged to discuss draft assignments prior to submission and also marked work following assessment. Feedback is also provided in weekly office hours as well as towards the end of each lecture, when students answer a “quick question” based on the lecture material. A class is held each week to answer exercises on the previous week’s lecture material. Feedback is then provided with answer guidelines for quick questions and exercises posted for students’ consultation in the EC372 ORB. A multiple choice test held during the term enables students to obtain feedback on their progress in gaining a grasp of basic EC372 concepts. Before the final examination feedback is provided on students’ answers to previous years’ examination questions and in revision sessions.
- Stuart I. Greenbaum; Anjan V. Thakor; Arnoud W. A. Boot. (2015) Contemporary Financial Intermediation, London: Academic Press.
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
||120 minutes during Summer (Main Period) (Main)
Module supervisor and teaching staff
Prof Piero Gottardi, email: firstname.lastname@example.org.
Lectures & classes: Prof. Piero Gottardi
For further information, send an email message to email@example.com.
Prof Aditya Goenka
The University of Birmingham
Available via Moodle
Of 31 hours, 29 (93.5%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
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