Master's Degree in Economics and Finance

Master's Degree in Specialized Economic Analysis

Master's Degree in Data Science

Admissions

Career Services

Alumni Community

Economics Program

Financial Economics Program

PhD Economics Track Program

Go to Master's degrees

Close

Banking

Empirical Banking - Methodological Aspect

Analyzing Bank Profitability and Risk: Empirical Methods and System Stability

10h (5 days)

€675 - €1,175

Face to Face

English

Program date: July 7 - July 11, 2025

Early Bird deadline: April 15, 2025

Learn more

Empirical Banking - Methodological Aspect

Applications for 2025 Summer School programs are now open!

Apply

Summer school

Banking

Empirical Banking Methodological Aspect

This course covers methodologies for analyzing banks’ profitability and risk at individual and system levels. It explores classical and modern approaches to bank performance, risk management, and system stability.

Teaching Faculty

Get up to speed with the latest developments in Empirical Banking Methods

The course has been specifically designed for:

Advanced undergraduate and graduate students interested in completing their studies in banking.
Master’s or PhD students writing their thesis on bank risk, risk management, or financial stability.

The course covers methodologies to analyze banks' profitability & risk at individual and system levels.

At the end of the course, participants will:

Understand classical and recent empirical analyses of banking.

Program Syllabus for Empirical Banking

What will you be studying? Check out the course outline below:

The industrial organization of banking

Measuring the impact of bank competition and market structure on bank profitability and risk.

Bank risks and bank regulation

Measuring market, credit and liquidity risk. Tail risk measures
Regulating bank risks.

Systemic risk and banking system stability

Systemic bank distress and banking crises: measurement and prediction.

Foundations of Early Warning Systems (EWS) for bank systemic risk

CoVaR,- SRISK-type , frameworks.

Stress testing banking systems

Methodologies and implications for regulation.

List of References

To help you prepare for this course, you may want to read some of the following articles:

Session 1: The industrial organization of banking

Corbae, Dean, and Ross Levine, 2023, Competition, Stability, and Efficiency in the Banking Industry, mimeo.
Egan, Mark, Stefan Lewellen, and Adi Sunderam, 2021, The Cross-Section of Bank Value, The Review of Financial Studies, v.35, n.5: 2101-2143.
Degryse, Hans, and Steven Ongena, 2019, Competition and Regulation in the Banking Sector: A Review of the Empirical Evidence on the Sources of Bank Rents, The Oxford Handbook of Banking, 3rd Edition, Oxford.
Goetz, Martin, 2018, Competition and bank stability, Journal of Financial Intermediation, 35: 57-69.
Hughes, Joseph, and Loretta Mester, 2019, The performance of financial institutions: modeling, evidence, and some policy implications, The Oxford Handbook of Banking, 3rd Edition, Oxford.

Session 2: Bank risks and bank regulation

BCBS, 2019, The costs and benefits of capital regulation: a review of the literature, Working Paper n.37.
BCBS, 2022, Evaluation of the impact and efficiency of Basel III Reforms, December.
BCBS, 2022, Evaluation of the impact and efficiency of Basel III Reforms – ANNEX, December.

Session 3: Systemic risk and banking system stability

Benoit, Colliard, Hurlin, and Perignon, 2017, Where the Risks Lie: A Survey on Systemic Risk, Review of Finance, 21: 109-152.
Boyd, De Nicolò, and Rodionova, 2019, Banking crises and crises dating: disentangling shocks and policy responses, Journal of Financial Stability, Vol. 41: 45-54.
Fouliard, Jérémy, Michael Howell , Hélène Rey, and Vania Stavrakeva 2023, Answering the Queen. Machine learning and financial crises, mimeo, October.
Romer, C. D. and D. H. Romer, 2017, New evidence on the impact of financial crises in advanced countries. American Economic Review. 107, 3072–3118 (2017).

Session 4: Foundations of Early Warning Systems (EWS) for Bank Systemic Risk

Adrian, Tobias and Markus Brunnermeier, 2016, CoVaR, American Economic Review, Vol. 106(7): 1705-1741.
Brownlee and Engle, 2017, SRISK: A Conditional Capital Shortfall Measure of Systemic Risk, The Review of Financial Studies, Vol. 30, n.1: 48-79.
Diebold, Francis, and Kamil Yilmaz, 2014, On the network topology of variance decompositions: measuring the connectedness of financial firms, Journal of Econometrics, 182: 119-134.
Jung, Hyeyoon, Robert Engle, and Richard Brenner, 2023, CRISK: Measuring the Climate Risk Exposure of the Financial System, FED NY Staff Report No.977, March.

Session 5: Stress testing

Acharya Viral, Richard Berner, Robert Engle, Hyeyoon Jung, Johannes Stroebel, Xuran Zeng, and Yihao Zhao, 2023, Climate Stress Testing, Annual Review of Financial Economics, 15:291–326.
Sarin, Natasha, and Lawrence Summers, 2022, On market-based approaches to the valuation of bank capital, Handbook of Financial Stress Testing, Cambridge University Press.
De Nicolò, Gianni, and Marcella Lucchetta, 2017, Forecasting Tail Risks, Journal of Applied Econometrics, 32: 159-170.
Engle, Robert, 2022, Stress testing with market data, Handbook of Financial Stress Testing, Cambridge University Press.
Engle, Robert, and Tianyue Ruan, 2019, Measuring the probability of a financial crisis, PNAS, Vol. 116, n.37: 18341-18346.

Call for papers

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 requirements

The level of the material is equivalent to what is presented in our Master’s programs.

It is the responsibility of the applicant to check they meet the eligibility requirements for admission.

Program date: July 7 - July 11, 2025

Early Bird deadline: April 15, 2025

Requirements

Summer School applicants normally demonstrate one or more of the following:

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

Schedule

Here is your timetable for BSE Empirical Banking Methodology course. The schedule is designed to allow students to participate in all courses in the Banking program.

Please refer to the Banking Summer School webpage for the complete schedule of all banking courses.

Time

7

mon

8

tue

9

wed

10

thu

11

fri

11: 30 - 13:30

Lecture

14:30 - 15:30

Paper Presentations* | *These sessions only take place if enough papers are submitted

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 seeking credit transfer will 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. For more information on available discounts, please click here. Fees for courses in other Summer School programs may vary.

Course

Banking and Money

Empirical Tools/Applications in Banking and Macro-Finance

Banking Theory

Empirical Banking- Methodological Aspects

Modality

Face to Face

Total Hours

10

ECTS

1

Regular Fee

1,175€

Reduced Fee*

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?

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

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 Summer School 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 Summer School courses. See more information about available discounts oor request a personalized discount quote by email.