Banks, financial stability, and competition

Why do financial intermediaries exist and what do they do? In this course we examine the main activities of financial intermediaries, the related risks, and how these risks can be managed. We will also analyze the role of competition in the financial sector, and how it differs from other sectors. Furthermore, we will consider the objectives and requirements of banking regulation, and discuss the challenges raised by recent financial crises and episodes of instability. Finally, we look at cross-border activities of banks and the specific challenges that arise from them. Empirical evidence from the Colombian case and other emerging markets is discussed along the course.