The course illustrates the insights underlying the novel approach by bank regulators and central banks since the financial crisis of 2007-2008. It covers the novel Basel III and FSB legislation on capital requirements and liquidity risk for banks and shadow banks. The philosophy of countercyclical policy based on explicit models of risk incentives resonates throughout the course.

Topics:

• Roots of business and credit cycles
• Bank leverage and endogenous risk
• Financial recessions
• Capital regulations and TLAC
• Bank resolution and recovery
• Maturity transformation and liquidity regulation
• Shadow banking

This course is organised in collaboration with our partner Florence School of Banking and Finance (FBF).