Prerequisite: Regulation of Financial Institutions , Capital Markets Regulation, or by permission of instructor.
Exam: Last Class Take-home
This course will examine two kinds of topics: (1) more in-depth treatment of key elements of financial regulation covered in introductory courses; and (2) selected emerging issues. The former will include capital (theories and varieties of capital regulation, stress testing) and liquidity (experience with liquidity squeezes during the financial crisis of 2007-09, rationales for liquidity regulation, role of central bank lender-of-last-resort facilities). The latter will include the regulation of systemic risk (non-bank financial institutions, activities of unregulated firms, institutional mechanisms for systemic risk oversight), tiering of bank regulation for institutions of different sizes and risk profiles, and Fintech (block chain/distributed ledger technology).