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


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


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


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

Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunnsøkonomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.


Formal prerequisite knowledge

You must fulfill one of these prerequisites:

Overlapping courses

10 credits overlap with ECON4420 International Credit and Financial Markets


Lectures and seminars.

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.


Ordinarily, this course has a 3-hour written school exam.

For 2021 the following applies for the exam in ECON4335:

The examination will be a 5-hour home examination in Inspera. The home exam will be an open-book exam, where all written and printed resources as well as technical support is allowed. All submitted papers will be checked for plagiarism. You can find the date and time for the exam on the semester page.

Previous exams

Exam papers with comments from examiner

Digital examination

The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.

Read more about written examinations using Inspera.

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, and you submit your response in 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

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.


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






Every autumn


Every autumn

Teaching language