Financial Intermediation
Code
2240
Academic unit
null
Department
null
Credits
3,5
Teacher in charge
João Cabral dos Santos
Teaching language
English
Objectives
This course aims at explaining financial intermediation, in particular the part of financial intermediation done via banks. The course also aims at explaining some of the most important developments in financial intermediation, including loan securitization, the CDS market and the growth of shadow banking.
Prerequisites
Subject matter
The financial intermediation covers five main topics:
(I) Why do we need banks
(II) What we need to regulate the banks
This part of the course will also discuss the different forms of banking regulations.
(III) The advantages and disadvantages for companies to establish lending relationships with a bank;(IV) The potential benefits for companies of combining bank loans with bond financing;
(V) Recent major developments in financial intermediation, including the growth of secondary loan market, credit securitization and CDS market.
Bibliography
Teaching method
Classes plus reading materials for students to accompany and complement the topics discussed in classes.
Evaluation method
During semester quizzes: 2 x 10\% of the final grade. Final exam: 80\% of the final grade. Approval in the course requires a minimum of 10 in the final exam.