The aim of the course is to provide an up-to-date view on Financial Economics from a practitioner´s perspective, making sure you get the latest insights. Both professors are also active in the financial sector (prof. Groeneveld is at Rabobank and prof. Berndsen is at London Clearing House) and have substantial central bank working experience
|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 hurt 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 (e.g., for central counterparties). 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. The seminar consists of the following two parts:
1. 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 did not happen yet: the failure of one or more financial market infrastructures. To assess 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 innovations 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
2. 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
Type of instructions
Each seminar consists of approx. one hour Flip The Classroom or lecture by the lecturer and approx. one hour of student group presentations/discussion.
The student group presentation consists of presenting preselected articles on the same topic, prepared in advance by a group of students (usually two or three students).
Student presentations are group work and students can sign up for a specific group on a specific day on a first come first serve basis.
The presentation is a prerequisite for taking part in the written exam.
Course structure: An introductory session (A.) where students can ask (procedural) questions about the course, then prof. Berndsen's part ( B. through E.), followed by prof. Groeneveld's part (F. through I.)
Type of exams
- Thursday 28 Jan. 13.45 (starting time) introductory session
- Thursday 4 Feb. 13.45 (starting time) online Flip The Classroom seminar and presentation group 1 and 2
- Friday 12 Feb. 13.45 (starting time) online Flip The Classroom seminar and presentation group 3 and 4
- Thursday 25 Feb. 13.45 (starting time) online Flip The Classroom seminar and presentation group 5 and 6
- Thursday 4 Mar. 13.45 (starting time) online Flip The Classroom seminar and presentation group 7 and 8
- Thursday 11 Mar. 15.00 (starting time) hybrid lecture and presentation group 9 and 10 in Cube 01a
- Wednesday 17 Mar. 8.45 (starting time) hybrid lecture and presentation group 11 and 12 in Cube 01b
- Wednesday 24 Mar. 8.45 (starting time) hybrid lecture and presentation group 13 and 14 in Cube 01b
- Wednesday 31 Mar. 8.45 (starting time) hybrid lecture and presentation group 15 and 16 in Cube 01b
The final grade of this course consists of 20% of the group presentation grade and 80% by online exam grade. Minimum passing grade is a final grade (rounded to the nearest halve/whole number) of 6 (out of 10). The presentations are mandatory for taking the exam and will be graded by the teachers.