Empirical Banking Research

The cost of bank bailouts associated with global financial crises and the large output losses suffered by several countries clearly indicate the need for a better understanding of the banking industry. This course gives an overview of the scientific literature in banking, its specific features, the main contributions related to risk-taking, performance and corporate governance in banking, and the latest statistical methods. Students will learn why banks are unique organizations; the impact of bank performance on the real economy, the role of financial supervisors; how to assess bank risk and performance, and the most prevalent proxies in the literature. In addition, they will learn aspects related to bank corporate governance and ethics. Following areas are covered in this course: the banking industry, banking regulation (Basel accords, Banking Union, Bank of International Settlements, European Banking Authority), bank risk and performance: determinants and proxies, bank corporate governance, bank ethics.