JP Dr. Huyen Nguyen

The exam consists of two parts (points are accumulated with the given weights):

A) Group work which comprises an empirical exercise using Stata (1-3 students per group): weight 1/3

B) Individual essay: weight 2/3.

Subject to change, details are announced at the beginning of each semester.

Literature will be announced at the beginning of the course and is based exclusively on high quality peer reviewed journal articles.

English

Basic understanding of regression analysis

684 M.Sc. Economics: Wahlpflichtmodul

Lecture (2 h per week), Exercise (2 h per week)

The course discusses various aspects of financial intermediation, banking, finance and its laws and regulation as well as how the financial sector and the real economy interact. The module also illustrates empirical research methods and guides students on how to apply these methods to selected topics in banking and finance. Topics include but are not limited to:

• On the uniqueness of bank loans, the role of bank screening and monitoring,
• How bank regulation and supervision affect bank lending and risk taking,
• The lending channel of monetary policies,
• Overlending and banks in financial crises,
• Bank capital requirements,
• Foreign banks and its effects on domestic banking markets,
• The rise of shadow banking and the effect of FinTech on lending,
• Sustainable banking and bank climate risk management,
• The role of financial intermediation in the “finance-growth nexus”,
• Effects of credit supply on firm investment and employment decisions (theory and evidence),
• Effects of credit constraints on households, 
• Misallocation of credit

Students have gained deeper insights into the current literature on banking, the role of banks as financial intermediaries, how bank regulation and supervision affect bank lending and risk taking, and how banks transmit economic shocks to other market participants.

Students understand the development and changes in banking sector such as Fintech, shadow banking, and green finance.

Students can critically discuss and compare empirical papers in the field of banking.

Students can identify some basic data sources for undertaking independent empirical research in the field of banking.

Students understand which econometric models could be used to study the causal relationship between bank regulation and bank outcomes such as difference-in-differences, instrumental variable approach, and panel data regressions.

Students can replicate basic regressions in Stata and interpret regression results.