The aim of the course is to provide an up-to-date view on Financial Economics from a practioner´s perspective. Both professors are also active in the financial sector.
Course structure: 8 seminars in total, each consisting of a one-and-a-half hour lecture and one-and-a-half hours of student presentations/class room discussion.
Each lecture starts with the introduction of the topic by the lecturer followed by presentations of preselected articles on the same topic, prepared in advance by a group of students.
Student presentations are group work and the groups (usually 2 or 3 persons) will be constructed randomly by the course coordinator.
The presentations are mandatory for taking the exam (in other words: if you have not presented in class, you cannot pass this course) and will be graded by the teachers.
The final grade of this course will consist of 30% of the group presentation grade and 70% by sit-in exam grade. Minimum passing grade is a rounded, final grade of 6 (out of 10).
The financial crises of 2007 - 2012 (Lehman, eurozone sovereign debt) has put the functioning of the financial system in the spotlight. Those crises have shown how the subsequent disruption of the financial system hurted the real economy, highlighted the failure to reign in systemic risk. Subsequently central banks and financial regulators have responded globally with unprecedented monetary policies and new regulations. The rise in cryptocurrencies can be seen as a reaction to the crisis but also as a matter of innovation, both views are discussed. Furthermore, benefits and disadvantages of financial cooperatives are compared to other governance structures.|
This seminar consists of two parts:
1. Financial Cooperatives and Central Banking (lecturer prof. J.M. Groeneveld)
In this part of the seminar, we discuss two highly topical and interconnected issues. Since the Great Financial Crisis and sovereign debt crisis in the Eurozone, the European Central Bank has pursued an unconventional monetary policy. The transmission of this extremely loose monetary policy to the real economy and the - political - independence of the ECB will be studied. The effectiveness of monetary policy depends on the behaviour of banks as financial intermediaries. Therefore, banking business models and ownership structures will be explored as well. These features are in turn partly shaped by the European Central Bank in its capacity as banking supervisor. In addition, attention will be paid to changes in banking market structures and the rise of alternative finance, which might alter the monetary transmission process drastically.
Lecture topics of Prof. Groeneveld
Central Bank Independence
Banking Business Models
Banking Market Structures and Alternative Financing
2. Financial Market Infrastructures and Payments (lecturer prof. R.J. Berndsen)
In this part the student is introduced to the so-called 'plumbing' of the financial system by way of a metaphorical Warehouse. Although the infrastructure has performed relatively well during the Lehman crisis, you will study the crisis that didn't happen yet: the failure of one or more financial market infrastructures. To asses the impact of future developments on the financial sector (FinTech), we discuss innovations in the Warehouse such as the increasing speed of settlement (Instant Payments) and inovations of the Warehouse (cryptocurrencies, stable coins and central bank digital currencies).
Lecture topics of Prof. Berndsen
Real-Time Gross Settlement and Financial supervision
Systemic Risk and Central CounterParties
FinTech and Cryptocurrencies
Type of instructions
4 hours of interactive lectures and presentations
Type of exams
written exam (70% of final grade), student group presentation (30% of final grade and precondition for admission to the written exam