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Banking Regulation and Supervision

Foundations — From Market Failures to the Banking Union

Exploring the economic foundations and evolving challenges of bank regulation.

20h (10 days)

€1,375-€795

Online

English

Next edition: March 8-19, 2027

Early bird deadline: January 20, 2027

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Banking Regulation and Supervision

Foundations — From Market Failures to the Banking Union

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Who is this Course for?

Banking Regulation and Supervision

Foundations — From Market Failures to the Banking Union

Course overview

Bank regulation and supervision are undergoing significant change as regulators implement new capital requirements and address emerging risks linked to bank failures, artificial intelligence, and climate change. Understanding the economic foundations of regulation and the tools used to safeguard financial stability is increasingly important for professionals working in banking, supervision, and financial policy.

This course introduces the economic foundations of bank regulation and supervision, examining the tools regulators and supervisors use to promote financial stability and the challenges posed by multinational banking groups. It combines theoretical foundations with current policy debates and case studies drawn from recent banking crises.

This course may be taken alone or together with the other courses in the program to give an in-depth view of the banking industry.

Faculty

Discover what makes this course different from others on a similar topic

1

Focused learning: Explore one key topic in depth during each session, while building a broader understanding of bank regulation and supervision.

2

Rigorous yet accessible: Explore the economic foundations of bank regulation and supervision through academically rigorous teaching without the need for advanced mathematics.

3

Theory in practice: Connect the concepts covered in each session to real-world cases, exploring how they have been applied in regulatory and supervisory practice.

4

Taught on the regulatory frontier: Built around live issues, Basel finalization, the 2023 bank failures, macroprudential policy and current research, including the instructor's own 2026 work.

5

Interactive Online Format: Flexible schedule, ideal for professionals.

Who is this course for?

Professionals in central banks, supervisory authorities, and international financial institutions (ECB/SSM, national supervisors, IMF) who need to understand the foundations of banking regulation and supervision
Risk, regulatory, and analytics staff in commercial banks and consultancies who want to connect the regulatory measures they have to follow to the supervisory logic that designs them
Master’s and PhD students as well as researchers in economics, finance, and public policy looking to ground their work in the actual realities of banking regulation (Basel finalization, the 2023 turmoil, macroprudential policy)

Learning outcomes

By the end of this course, participants will be able to:

Explain the rationales for prudential regulation
Understand the objectives of capital and liquidity regulation
Evaluate the strengths and weaknesses of Basel regulation
Understand the role of supervision beyond regulation
Analyze the trade-off between rules and supervisory discretion
Know the implications of organizational structure for regulation and supervision
Understand the challenges of resolving multinational banks
Evaluate alternative resolution frameworks

Key topics for Foundations — From Market Failures to the Banking Union

Take a look at the themes covered in the next edition of this Foundations of Banking Executive Education course.

Each topic is accompanied by specific learning objectives and case studies where applicable.

Why Regulate Banks?

Learning objectives

Understand why banks are different from other firms
Explain the rationales for prudential regulation

Topics

Financial intermediation and maturity transformation
Information asymmetries in banking
Bank runs and financial fragility
Systemic risk and contagion
Too-big-to-fail and moral hazard

Case Studies

Northern Rock
Silicon Valley Bank

Prudential Regulation

Learning objectives

Understand the objectives of capital and liquidity regulation
Evaluate the strengths and weaknesses of Basel regulation

Topics

Basel I, II, III, and IV
Risk-weighted capital requirements
Leverage ratio
Liquidity regulation (LCR and NSFR)
Macroprudential regulation
Stress testing

Bank Supervision and Supervisory Judgment

Learning objectives

Understand the role of supervision beyond regulation
Analyze the trade-off between rules and supervisory discretion

Topics

Why supervision exists
Supervisory monitoring and information production
CAMELS ratings
ECB Supervisory Review and Evaluation Process (SREP)
Pillar 2 requirements
Early intervention measures
Supervisory discretion

Case Studies

Silicon Valley Bank
Credit Suisse

Cross-Border Banking and International Bank Organization

Learning objectives

Understand why banks expand internationally
Analyze the implications of organizational structure for regulation and supervision

Topics

International banking models
Branches versus subsidiaries
Internal capital markets
Ring-fencing
Regulatory arbitrage
Home-host supervision

Cross-Border Resolution and Banking Union

Learning objectives

Understand the challenges of resolving multinational banks
Evaluate alternative resolution frameworks

Topics

European Banking Union
Bank resolution fundamentals
Bail-in versus bailout
European Deposit Insurance Scheme
Cross-border burden sharing

Case Studies

Banco Popular
Fortis & Dexia

References

Take a look at the list of references which may help you prepare for this course.

The references are organized by topic.

Why Regulate Banks?

Freixas, X. and Rochet, J.-C. (2023), Microeconomics of Banking, Chapter 6 & 8, MIT Press.

Prudential Regulation

Admati, A. & Hellwig, M. (2013), selected chapters from The Bankers’ New Clothes
Basel Committee overview documents

Bank Supervision and Supervisory Judgment

Hirtle, B. and Kovner, A. (2022), “Bank Supervision,” Annual Review of Financial Economics, 14, 39–56.
Agarwal, S., Lucca, D.O., Seru, A., and Trebbi, F. (2014), “Inconsistent Regulators: Evidence from Banking,” Quarterly Journal of Economics, 129(2), 889–938.
Eisenbach, T.M., Lucca, D.O., and Townsend, R.M. (2022), “Resource Allocation in Bank Supervision: Trade-Offs and Outcomes,” Journal of Finance, 77(3), 1685–1736.

Cross-Border Banking and International Bank Organization

Cerutti, E., Dell’Ariccia, G., and Martínez Pería, M.S. (2007), “How Banks Go Abroad: Branches or Subsidiaries?” Journal of Banking and Finance, 31(6), 1669–1692.
Calzolari, G. and Lóránth, G. (2011), “Regulation of Multinational Banks: A Theoretical Inquiry,” Journal of Financial Intermediation, 20(2), 178–198.
Fiechter, J., Otker-Robe, I., Ilyina, A., Hsu, M., Santos, A.O., and Surti, J. (2011), “Subsidiaries or Branches: Does One Size Fit All?” IMF Staff Discussion Note SDN/11/04

Cross-Border Resolution and Banking Union

Véron, Nicolas (2012). “Europe’s Single Supervisory Mechanism and the Long Journey Towards Banking Union”, Bruegel Policy Contribution 2012/16.
Beck, T., J.-P. Krahnen, P. Martin, F. Mayer, J. Pisani-Ferry, T. Tröger, B. Weder di Mauro, N. Véron and J. Zettelmeyer (2022), “Completing Europe’s banking union: economic requirements and legal conditions”, Policy Contribution 20/2022, Bruegel.

Why should you attend BSE Executive Education courses?

All BSE Executive Education courses are taught to the same high standard as our Master’s programs.

1

Network with like-minded peers from around the world

2

Short courses allow you to learn without a big time commitment

3

Try something new and expand your knowledge and career prospects, or advance your thesis

Admissions

Considering taking part in BSE Modern Approaches to Difference-in-Differences Executive Education course? Check you meet the requirements below.

Next edition: March 8-19, 2027

Early bird deadline: January 20, 2027

Requirements

Candidates are assessed on an individual basis according to their professional or academic background

Prerequisites include

Familiarity with mathematical concepts such as basic optimization
A working interest in banking, finance, or regulation. Prior exposure to financial or prudential concepts is helpful but not required — key ideas are introduced as needed.

The course is designed to be accessible to analysts and professionals who are comfortable reading academic papers on the topic. Get up to speed with the latest developments in banking regulation and supervision in a short time.

Course schedule

The times listed are Central European Time (CET). Compare with your time zone on time.is.

Instructors, topics, and schedules are subject to change.

Week 1

Time

1
Mon

2
Tue

3
Wed

4
Thu

5
Fri

14:00-16:00

Lecture

Practical

Lecture

Practical

Lecture

Week 2

Time

1
Mon

2
Tue

3
Wed

4
Thu

5
Fri

14:00-16:00

Practical

Lecture

Practical

Lecture

Practical

Certificate and Fees

Certificate

Participants who attend at least 80% of the course will receive a Certificate of Attendance free of charge. Participants will not be graded or assessed during the course.

Fees

A 10% discount applies when the confirmation payment is completed on or before the announced Early Bird deadline.

Multiple course discounts are available. Find out more information in our Fees and Discounts pdf.

Fees for courses in other Executive Education programs may vary.

Course

Foundations — From Market Failures to the Banking Union

Modality

Online

Total Hours

20

ECTS

0

Regular Fee

€1,375

Reduced Fee*

€795

* Reduced Fee applies for PhD or Master’s students, Alumni of BSE Master’s programs, and participants who are unemployed.

FAQ

Need more information? Check out our most frequently asked questions.

Are the sessions recorded?

Sessions will be recorded and videos will be available for a month once the course has finished.

How much does each Executive Education course cost?

Fees for each course may vary. Please consult each course page for accurate information.

Are there any discounts available?

Yes, BSE offers a variety of discounts on its Executive Education courses. See more information about available discounts or request a personalized discount quote by email.