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Banking

Banking Theory

The course will integrate the study of relevant theories with practical applications to keep banking professionals ahead of the curve

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10h (5 days)
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€675 - €1,150
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Face to face
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English
Program date: July 7 - July 11, 2025
Early bird deadline: April 15, 2025
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Learn more
Banking Theory
Applications for 2025 Summer School programs are now open!
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This course aims to uncover key mechanisms shaping bank behavior and its impacts.

It covers topics like bank competition, capital regulation, debt overhang, deposit insurance, and bank runs, using frameworks such as Stiglitz-Weiss and Diamond-Dybvig.

Teaching Faculty

Are you interested in taking part in this BSE Banking Summer School course?

This course has been purposely designed for:

  • Graduate students specializing in banking and financial markets.
  • Faculty members or researchers.
  • Central bankers and regulators wishing to brush up on their knowledge of the field.
  • Central bankers and regulators wanting the latest advances in academic research.

Understand the key mechanisms underlying the behavior of banks and their consequences

Participants who take this course will understand:

  • The relevance of imperfect information in the credit market.
  • The role of financial institutions in the economy.
  • The specifics of banks’ strategies & their impact on the overall allocation of capital in the economy.
  • The role of banks and other agents in determining the inherent instability of the economy.
  • The logic and possible unintended consequences underlying banking regulation.

Program Syllabus for Banking Theory

Below is a brief outline of the topics covered in this Banking Summer School course

Why do financial intermediaries exist?

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  • Information frictions in the credit market.
  • The Stiglitz and Weiss setup: Credit rationing.

The role of Informed Intermediaries

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  • The Holmström-Tirole setup.
  • Debt Overhang Problems.
  • Dark side of deposit Insurance.

Bank competition and bank risk

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  • Traditional Approach.
  • Alternative Approach.

Bank capital regulation

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  • Risk Insensitive Capital Regulation.
  • Risk Sensitive Capital Regulation.
  • Macroeconomic impact of Capital Regulation.

Bank runs

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  • The Diamond-Dybvig setup.
  • How to prevent deposit-based bank runs: deposit insurance.
  • Double bank runs.

List of References

There is no mandatory list of references for this course but the following list may be useful.

Books

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  • Allen, F., and D. Gale. 2000. Comparing Financial Systems. Cambridge, MA: MIT Press
  • Freixas, X., and J.C. Rochet. 1997. Microeconomics of Banking. Cambridge, MA: MIT Press

Articles

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  • Boyd, J., and G. De Nicolo. 2005. The Theory of Bank Risk-Taking and Competition Revisited. Journal of Finance 60:1329–43.
  • Diamond, D.., and Philip H. Dybvig. 1983. “Bank Runs, Deposit Insurance, and Liquidity.” Journal of Political Economy 91 (5): 401–19.
  • Holmström, B., and J. Tirole (1997), “Financial Intermediation, Loanable Funds, and the Real Sector,” Quarterly Journal of Economics.
  • Stiglitz, J. E., and A.Weiss. 1981. Credit Rationing in Markets with Imperfect Information. American Economic Review 71:393–410.

Call for papers

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Students are encouraged to present their research papers.

If you are interested in submitting a paper for review, please make your submission to summerschool@bse.eu. Please put “Banking call for papers” in the subject line of your email.

The deadline for submitting papers is May 30, and the schedule for the presentation of papers will be announced when the selection of papers has been finalized.

Why join our Summer School?

All BSE Summer courses are taught to the same high standard as our Master’s programs. Join us to:

1

Network with like-minded peers

2

Study in vibrant Barcelona

3

Learn from world-renowned faculty

Admissions and entry requirements

Applicants must ensure they meet course requirements or verify eligibility with Admissions Counselors.

Programs begin in July 7-11, 2025
Application deadline: April 15, 2025

Requirements

Successful candidates typically demonstrate one or more of the following in their application to our Summer School programs:

  • A strong background in Economics or a field closely related to the course topic (Statistics, Law, etc.)
  • Postgraduate degree or current Master’s/PhD studies related to the course topic
  • Relevant professional experience
Apply now

Here is your timetable for BSE Banking Theory course

The schedule is designed to allow students to participate in all courses in the Banking program.

Time
7
mon
8
tue
9
wed
10
thu
11
fri
9:00 - 11-00
Banking Theory
14:30 - 15:30
Paper presentations** | **These sessions will only take place if sufficient papers are submited

Credit transfers (ECTS)

To be eligible for credit transfer, students must complete a final project.

Students will deliver a short summary of a paper one week after the summer school finishes. It will consist of a critical summary of a published paper, around 3-4 pages, 1.5 spaced, font size 11. The critical summary will need to follow these guidelines: expose what are the main ideas of the paper, how they are addressed, strength and weakness of the paper, methodological approach, theoretical or empirical background, and suggestions for improvements.

Consult the Summer School Admissions page for more information about this option.

Certificate of Attendance

Participants not interested in credit transfer will instead receive a Certificate of Attendance free of charge. These Participants will not be graded or assessed during the course.

Fees for 2025

Multiple course discounts are available. Fees for courses in other Summer School programs may vary.

Course
Banking Regulation and the Future of Money
Empirical Tools/Applications in Banking and Macro-Finance
Empirical Banking - Methodological Aspects
Modality
Face-to-face

Face-to-face

Face-to-face

Total Hours
10
10
10
ECTS
1
1
1
Regular Fee
1,175€
1,175€
1,175€
Reduced Fee*
675€
675€
675€

FAQ’s

Here are some commonly asked questions by participants. Any further queries, please contact our Admissions Team.

Is accommodation included in the course fee?

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Unfortunately, accommodation is not included in the course fee. Participants are responsible for finding accommodation.

Are the sessions recorded?

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

How much does each Summer School course cost?

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

Are there any discounts available?

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

Can I take more than one course?

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Yes! you can combine any of the Summer School courses (schedule permitting). See the full course calendar here.

Cancelation and Refund Policy

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Please consult BSE Summer School policies for more information

Are there any evening activities during the course?

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A social dinner will take place during the weebk for all participants, it is free to attend.

Contact our Admissions Team

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