ØABED2300 The Economics of Banking Course description

In this course we will study the role of commercial and investment banks in a country like Norway. As highlighted by the recent financial crisis, a well-functioning banking system is crucial for any modern economy and a crisis in the banking sector can have widespread consequences. We will first address questions like: why do we have banks? What is the role of banks? We will then turn our attention to the ways banks are managed. Finally, the course will cover recent trends in the banking industry.

Language of instruction is English.

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student

• has broad knowledge of important topics, theories, tools and methods relating to: The economic incentives of banks and the management of banks
• is familiar with research related to the recent trends in banking
• can update his/her knowledge in the field

Skills

The student

• can apply academic knowledge and relevant results of research to practical and theoretical problems relating to the regulation and management of banks
• can reflect upon his/her own academic practice and adjust it under supervision
• can find, evaluate and refer to information and scholarly subject matter
• masters relevant scholarly tools and techniques needed for modern risk management in the banking industry

General competence

The student

• can communicate important academic subject matters such as theories, problems and solutions related to the banking industry, and the management of banks
• can exchange opinions and experiences with others with a background in the field of banking
• is familiar with new thinking about the functioning of the banking industry

In class, the course includes:

• Lectures
• Seminars
• Time for students to work in groups on assigned problems

At home, the course requires that the student:

• Work alone or in small groups on non-graded assignments
• Self study

The teaching takes place with in-person attendance on campus.

The following coursework requirements must have been approved for the student to take the exam:

• Coursework 1: One written submission (circa 5 pages) which is carried out in groups of two or individually.

The purpose of the coursework requirement is to help students engange actively with the material.

All required coursework must be completed and approved by the given deadline for the student to take the exam. If the coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by a given deadline.

The exam in the course is a supervised exam of 4 hours.

The following aids are permitted:

• One dictionary: Native language-English/English-native language or English-English

Grade scale A - F

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

Jacopo Bizzotto