Sylabus
Please switch to English since the class is conducted in English only.
Anotace
Please switch to English since the class is conducted in English only.
This course uses asymmetric information approach of a modern microeconomics theory to explain the role of banks in the economy. The course provides description of the functions of banks and explains the needs for financial intermediation. The emphasize is on the structural weaknesses of the banking sector that may justify public interventions. The course deals with the optimal contracting between lender and borrower, the persistence of rationing in the credit market, the use of collateral and the solvency problems.