ECON4335 - The Economics of Banking

Schedule, syllabus and examination date

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Course content

  • What distinguishes banks from other firms?
  • What determines their behavior when they set interest rates and extend loans?
  • What is their role in the economy?
  • Why is banking subject to a long list of specific regulations?
  • How is monetary policy transmitted through the banking system?
  • Why do banking crises occur and what are their consequences for the macroeconomy?

These are the main questions that are raised in this course.

The course covers both micro and macro issues, but with main emphasis on the former. It has points of connection to courses on industrial organization, finance and monetary policy.

Learning outcome

Knowledge outcomes

You should know

  • the main economic theories about bank behavior, bank regulation,banking crises and the role of banks in the economy (including in the transmission mechanism of monetary policy)
  • some institutional and historical facts related to the same areas

Skills

You should be able to

  • analyze how banks should adapt to shifting circumstances
  • how they are affected by banking regulations
  • how monetary policy and bank behavior interact to affect aggregate demand and the risks affecting individual banks and the banking system as a whole

Competence

You should

  • be able to read and understand project reports and journal articles that make use of the concepts and methods that are introduced in the course
  • be able to make use of the course content in your own academic work, for example in analyses that are part of the master’s thesis

Admission

Students who are admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.

If you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures.

Apply for guest student status if you are admitted to another Master's programme, or have completed a master in Economics at UiO or another Norwegian University.

Overlapping courses

10 credits overlap with ECON4420 International Credit and Financial Markets

Teaching

Lectures: 2 hours per week throughout the semester.

Seminars: 2 hours per week through parts of the semester.

Access to teaching

A student who has completed compulsory instruction and coursework and has had these approved, is not entitled to repeat that instruction and coursework. A student who has been admitted to a course, but who has not completed compulsory instruction and coursework or had these approved, is entitled to repeat that instruction and coursework, depending on available capacity.

Examination

A 3-hour written school exam.

Previous exams

Examination support material

Students may use dictionaries at this exam. Dictionaries must be handed in before the examination. Please read regulations for dictionaries permitted at the examination.

Language of examination

The examination text is given in English.You may submit your response in Norwegian, Swedish, Danish or English.

Grading scale

Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.

Explanations and appeals

It is recommended to request an explanation of your grade before you decide to appeal.

Appeal

Explanation

The deadline to request an explanation is one week after the grade is published. For oral and practical examinations, the deadline is immediately after you have received your grade.

The explanation should normally be given within two weeks after you have asked for it. The examiner decides whether the explanation is to be given in writing or verbally.

Ask for an explanation about the grade in this course

Ask for an explanation about the grade for postponed exam in this course

Resit an examination

If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.

See also our information about resitting an exam.

Withdrawal from an examination

It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.

Special examination arrangements

Application form, deadline and requirements for special examination arrangements.

Evaluation

The course is subject to continuous evaluation. At regular intervals we also ask students to participate in a more comprehensive evaluation.

Facts about this course

Credits

10

Level

Master

Teaching

Every autumn

Examination

Every autumn

Teaching language

English