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⇱ Financial Intermediation | Coursera

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Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

1 week to complete
at 10 hours a week
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

1 week to complete
at 10 hours a week
Flexible schedule
Learn at your own pace

What you'll learn

  • analyze business models and their impact on the functioning and stability of the banking sector starting from the databases available online;

  • evaluate the critical issues and specificities of the modern banking system in contexts where the development of the financial market is limited;

  • apply banking sector innovations in institutions;

    identify financial intermediation risks and contribute to long-term economic growth.

  • analyze banking system effects on market efficiency and stability; evaluate the impact of fintech on financial intermediation.

Details to know

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Assessments

26 assignments

Taught in English

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This course is part of the Financial Markets Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 6 modules in this course

By taking this course, students will learn the role played by financial intermediaries in modern economies, their vital role to finance investments and the sources of risk associated with such intermediation activity. The course is structured to provide students with both theoretical notions, through the derivation of models developed by the literature, and empirical application, that are based on real data analyses.

The topics covered include the role of financial development and banking activity for economic growth; the role of banks for the occurrence of financial crisis and the regulatory initiatives to avoid excessive risk-taking; the propagation of financial intermediaries for macroeconomic shocks; the microeconomics of banking, with emphasis on the role of market competition and the determinants of bank-firm relationships; the technological innovation that takes the name of “Fintech revolution” and how it is potentially disrupting traditional financial intermediation. Suggested prerequisites for this course are microeconomics, econometrics and mathematics for economists.

By the end of this week, students will acquire a comprehensive understanding of financial intermediaries and grasp the distinctive role played by banks. They will gain theoretical insights on the function of banks, their objectives, the determinants of profitability and risk in banking activity. To conclude, the lesson will define metrics for assessing performance and risk, drawing insights from banks' balance sheets, income statements, and stock price data.

What's included

14 videos6 readings4 assignments

14 videos•Total 18 minutes
  • Welcome•1 minute
  • Financial Intermediaries•1 minute
  • Banks•1 minute
  • The role of banks•1 minute
  • Banks' funding structure•1 minute
  • Introduction•1 minute
  • The determinants of bank profits•2 minutes
  • The sources of risk for bank•1 minute
  • Credit risk and its determinants•1 minute
  • Liquidity risk and its determinants•1 minute
  • Introduction•1 minute
  • Income statement and banks' balance sheet•3 minutes
  • The measures of performance•1 minute
  • Measures of risk from balance sheet data•1 minute
6 readings•Total 19 minutes
  • A taxonomy of financial institutions•3 minutes
  • The optimal amount of bank reserves•4 minutes
  • Leverage and the role of bank capital•4 minutes
  • Measures of risk from market data•4 minutes
  • Sources of data in the real world•2 minutes
  • Summary of the week•2 minutes
4 assignments•Total 45 minutes
  • Introduction to financial intermediation and bank risk management•30 minutes
  • Let's practice!•5 minutes
  • Let's practice!•5 minutes
  • Let's practice!•5 minutes

By the end of this week, learners will be able to construct empirical tests and critically evaluate the results of the causal relationship between financial development and long-term economic growth.

What's included

11 videos8 readings4 assignments

11 videos•Total 22 minutes
  • Introduction•2 minutes
  • A simple theoretical framework•2 minutes
  • Discuss the three channels of influence•4 minutes
  • From theory to practice•1 minute
  • Definition of the causal question and empirical challenges•1 minute
  • Seminal contribution in the literature•3 minutes
  • What’s next?•2 minutes
  • Non-linear role of financial development•3 minutes
  • Application: Is Europe overbanked?•1 minute
  • Introduction•1 minute
  • Measures of financial development•2 minutes
8 readings•Total 33 minutes
  • Empirical results•4 minutes
  • The instrumental variable approach in a cross-country analysis•4 minutes
  • Combining macro question with more granular data•4 minutes
  • Case study: Is Europe overbanked?•3 minutes
  • Sources of macro data•2 minutes
  • Measures of economic development•4 minutes
  • Problem set with data•10 minutes
  • Summary of the week•2 minutes
4 assignments•Total 45 minutes
  • Finance and economic growth: the role of banks for economic development•30 minutes
  • Let's practice!•5 minutes
  • Let's practice!•5 minutes
  • Let's practice!•5 minutes

By the end of this week you will learn how to apply the analysis of bank runs to the Global Financial Crisis of 2007-2009.

What's included

24 videos14 readings5 assignments

24 videos•Total 50 minutes
  • Introduction to the Diamond-Dybvig Model•2 minutes
  • Assumptions of the model: Agents' preferences•2 minutes
  • Assumptions of the model: Technologies•2 minutes
  • Planner's problem: Definition•3 minutes
  • Planner's problem: Solution•3 minutes
  • Planner's problem: Derivation of further intuition•2 minutes
  • Planner's problem: Key intuition•1 minute
  • What we learned so far•1 minute
  • Competitive equilibrium with complete markets: Set up•2 minutes
  • Competitive equilibrium with complete markets: Solution•2 minutes
  • Competitive equilibrium with incomplete markets: Set up•1 minute
  • Competitive equilibrium with incomplete markets: Formal problem•1 minute
  • Competitive equilibrium with incomplete markets: Equilibrium prices•2 minutes
  • Competitive banking equilibrium: Introduction•1 minute
  • Competitive banking equilibrium: Solution•1 minute
  • What we learned so far•1 minute
  • Bank runs: Introduction•3 minutes
  • Bank runs: Set up•4 minutes
  • Bank runs: Intuition and possible solutions•3 minutes
  • Suspension of convertibility: Set up•2 minutes
  • What we learned so far•4 minutes
  • What happened?•2 minutes
  • Originate-to-distribute "vs" Originate-to-hold•3 minutes
  • How do we know?•3 minutes
14 readings•Total 95 minutes
  • Planner's problem: Derivation of the solution•8 minutes
  • A quick detour: A result that we need•10 minutes
  • Second best•4 minutes
  • Competitive equilibrium with incomplete markets: Solution•10 minutes
  • Competitive banking equilibrium: Formal problem•3 minutes
  • Autarky•10 minutes
  • Bank runs: The role of risk aversion and liquidation costs•10 minutes
  • Suspension of convertibility: Solution•6 minutes
  • Equivalence between suspension of convertibility and deposit insurance•10 minutes
  • Narrow banking•10 minutes
  • What about subprime mortgages?•4 minutes
  • The role of securitization•4 minutes
  • The role of Treasury bonds•4 minutes
  • Summary of the week•2 minutes
5 assignments•Total 50 minutes
  • Financial crises: banks’ funding structure and its implications for instability•30 minutes
  • Let's practice!•5 minutes
  • Let's practice!•5 minutes
  • Let's practice•5 minutes
  • Let's practice•5 minutes

By the end of this week, learners will be able to analyze the role of the banking sector for the business cycles. In detail, the topics covered in this week regard the transmission channel of monetary policy, the amplification channel of asset prices and banking shocks for the real economy.

What's included

12 videos6 readings4 assignments

12 videos•Total 19 minutes
  • Introduction•2 minutes
  • The credit view•1 minute
  • Investments in the CC-LM framework•1 minute
  • Aggregate savings in the CC-LM•1 minute
  • Banking sector in the CC-LM•1 minute
  • Empirical evidence on the credit channel of monetary policy•2 minutes
  • Introduction•3 minutes
  • The channels of the financial accelerator•1 minute
  • The balance sheet channel at work•3 minutes
  • Introduction•2 minutes
  • The bank lending channel•1 minute
  • The bank lending channel at work•2 minutes
6 readings•Total 41 minutes
  • Equilibrium conditions in the CC-LM and comparative statics•5 minutes
  • The risk-taking channel of monetary policy•10 minutes
  • A stylized model•4 minutes
  • House prices and household leverage in the Great Financial Crisis•10 minutes
  • The sovereign debt crisis in Europe•10 minutes
  • Summary of the week•2 minutes
4 assignments•Total 45 minutes
  • Financial crises: banks’ reaction to shocks and its macroeconomic implication•30 minutes
  • Let's practice•5 minutes
  • Let's practice•5 minutes
  • Let's practice•5 minutes

By the end of this week, learners will be able to analyze how competition influences banks' exposure to intermediation risks. Additionally, they will understand the implications of bank competition for the emergence of financial crises.

What's included

20 videos13 readings4 assignments

20 videos•Total 30 minutes
  • Introduction•1 minute
  • The Monti-Klein model: Assumptions•3 minutes
  • The Monti-Klein model: Equilibrium•1 minute
  • The Monti-Klein model with Oligopoly: Assumptions•1 minute
  • The Monti-Klein model with Oligopoly: Equilibrium•1 minute
  • What we learned so far•1 minute
  • The Salop model: Assumptions•1 minute
  • The Salop model: The competitive equilibrium /1•1 minute
  • The Salop model: Intuition•1 minute
  • What we learned so far•1 minute
  • Definition of relationship banking•1 minute
  • Discussion on relationship banking•4 minutes
  • Case study: The failure of Continental Illinois Bank•1 minute
  • Case study: The sample of analysis•2 minutes
  • What we learned so far•1 minute
  • The Matutes-Vives model: Assumptions•3 minutes
  • The Matutes-Vives model: Imperfect Information•2 minutes
  • The Matutes-Vives model: Policy Implications•1 minute
  • The Allen-Gale model of competition and risk taking•2 minutes
  • The Boyd-De Nicoló model of competition and risk taking•1 minute
13 readings•Total 67 minutes
  • The Monti-Klein model: Derivation of the solution•4 minutes
  • The Monti-Klein model with Oligopoly: Derivation of the solution•3 minutes
  • Deposit rate regulation•10 minutes
  • The Salop model: The efficient solution•4 minutes
  • The Salop model: The competitive equilibrium /2•6 minutes
  • The Salop model: Compatibility between ATM Networks•10 minutes
  • The ex post monopoly on information•5 minutes
  • Case study: The history of Continental Illinois Bank•8 minutes
  • Case study: The effect of the failure on borrowers /1•4 minutes
  • Case study: The effect of the failure on borrowers /2•3 minutes
  • The Matutes-Vives model: Perfect Information•5 minutes
  • The trade-off between competition and stability: General equilibrium•3 minutes
  • Summary of the week•2 minutes
4 assignments•Total 37 minutes
  • Financial crises: banks’ reaction to shocks and its macroeconomic implication•30 minutes
  • Let's practice!•0 minutes
  • Let's practice!•5 minutes
  • Let's practice!•2 minutes

By the end of this week, learners will be able to analyze the recent evolution of FinTech and its impact on traditional banking.

What's included

18 videos10 readings5 assignments

18 videos•Total 41 minutes
  • Introduction: What is FinTech?•3 minutes
  • Digital banking•5 minutes
  • Crowdfunding•5 minutes
  • Digital payments•2 minutes
  • Digital asset management•4 minutes
  • What we learned so far•1 minute
  • The origins of cryptocurrencies•3 minutes
  • Cryptocurrencies' monetary function•3 minutes
  • How cryptocurrencies work: The blockchain•2 minutes
  • How cryptocurrencies work: Anonymity•2 minutes
  • How cryptocurrencies work: Mining•1 minute
  • What we learned so far•1 minute
  • Are cryptocurrencies good means of exchange?•2 minutes
  • Can cryptocurrencies be used as a store of value?•2 minutes
  • A possible solution: Stablecoins•2 minutes
  • Further issues of cryptocurrencies: Dimension of the blockchain•1 minute
  • Further issues of cryptocurrencies: Energy consumption•1 minute
  • Further issues of cryptocurrencies: Speed•2 minutes
10 readings•Total 51 minutes
  • Global Investments in Fintech /1•3 minutes
  • Global Investments in Fintech /2•3 minutes
  • A taxonomy of FinTech•3 minutes
  • Case study: Crowdcube•10 minutes
  • Case study: PayPal•10 minutes
  • Case study: Moneyfarm•5 minutes
  • A simple model of money•5 minutes
  • Case studies: Tether and Terra•6 minutes
  • Possible solutions: Proof of stake and proof of authority•4 minutes
  • Summary of the week•2 minutes
5 assignments•Total 56 minutes
  • The future of financial intermediation: the role of fintech innovation•30 minutes
  • Let's practice!•8 minutes
  • Let's practice!•5 minutes
  • Let's practice•8 minutes
  • Let'a practice!•5 minutes

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Instructors

Università di Napoli Federico II
1 Course•721 learners
Università di Napoli Federico II
1 Course•721 learners

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