Financial Stability and Regulation

Financial stability can be defined as a condition in which the financial system is capable of withstanding shocks and the unraveling of financial imbalances. Safeguarding financial stability requires identifying the main sources of inefficiencies in the allocation of financial resources and the mismanagement of financial risks. The aim of this course is to provide an overview of recent theories and empirical findings that constitute the prerequisites to understanding, monitoring, and safeguarding financial stability. The course features a comprehensive treatment of systemic risk in banking, with a special focus on the 2007-08 global financial crisis. We will study the anatomy of modern banking systems and the contagious spread of vulnerabilities in such systems. Moreover, we will study several channels through which systemic banking crises propagate across countries. The course puts large weight on lessons for financial stability policy. In particular, we will review unconventional monetary policy measures and macro-prudential regulatory frameworks aimed at maintaining financial stability.

Learning objectives

Upon completion of this course, you will be able to:

Understand the main mechanisms behind financial stability and instability
To better understand the underlying structures of the global financial system
To capture the implications of regulatory reform on the banks and the financial systems
To link the regulatory reform to key operations such as risk management
To understand the role of key institutions such as rating agencies and central counterparties
To capture the main functions of regulating and supervising bodies

Key concepts

Systemic risk in banking
Interconnectedness and contagion
Banking crisis resolution
Banking sector globalization and financial crisis transmission
Unconventional monetary policy
Macroprudential regulation and supervision

Course format

This course is offered in the part-time Master in Finance program and may be attended on a “no credit” basis by individuals not enrolled in the program. Course participants are visitors who are not responsible for assignments and do not take an exam or earn academic credits. As the number of seats in the course is limited, we recommend to register online early.

Course materials
Course materials except books will be provided in electronic form.

Language
English

Course fee*
€ 950 (fee is exempt from VAT). Goethe Business School students and alumni receive a 20% discount off the regular fee.

Certificate of participation
A GBS certificate of participation is awarded upon completion of the course.

Venue
House of Finance, Goethe University, Theodor-W.-Adorno-Platz 3, 60323 Frankfurt

*Withdrawal and fee refund

In case the course withdrawal request is received two weeks prior to the start of classes, we will retain a withdrawal fee of EUR 50. In case the course withdrawal request is received less than two weeks prior to the start of classes, we will retain 50% of the payment made.

Faculty

Dr. Norbert Metiu

Dr. Metiu is an economist at the Directorate General Financial Stability of the Deutsche Bundesbank. His research interests include macro-finance, financial crises, and the international transmission of crises. Dr. Metiu received his PhD in economics at Maastricht University in 2011, and he obtained his MSc in economics at Corvinus University of Budapest in 2008. Dr. Metiu has taught several courses in the field of financial economics at Maastricht University, Goethe University Frankfurt, and Goethe Business School.