À propos de ce cours
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Capital markets and financial institutions are all around us. This is an enormous industry in which powerful players oftentimes challenge investors and the public at large and expose them to significant risks. This Course provides for the deep understanding of the core ideas, concepts, and mechanisms of the modern capital market in a learner-friendly way. We will analyze the market’s most fundamental problems, realize the intrinsic interests of the market participants, reveal the true meaning of certain financial terms, and uncover credible signals of the likely behavior of economic agents – all that with little math and a lot of fun. The learners will be much better positioned with respect to the financial environment. They will see through the financial news, reveal the risks of the financiers’ wishful thinking promises, and protect themselves against dangerous adventures. The learners will get the opportunity to use the obtained knowledge, skills, and understanding for the successful professional career in the financial and other business areas, as well as in their day-to-day life....
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Calendar

Dates limites flexibles

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Intermediate Level

Niveau intermédiaire

Clock

Approx. 20 hours to complete

Recommandé : 5 hours/week...
Comment Dots

English

Sous-titres : English...
Globe

Cours en ligne à 100 %

Commencez dès maintenant et apprenez aux horaires qui vous conviennent.
Calendar

Dates limites flexibles

Réinitialisez les dates limites selon votre disponibilité.
Intermediate Level

Niveau intermédiaire

Clock

Approx. 20 hours to complete

Recommandé : 5 hours/week...
Comment Dots

English

Sous-titres : English...

Programme du cours : ce que vous apprendrez dans ce cours

Week
1
Clock
4 heures pour terminer

Perfect Capital Markets. Problems Caused by Private Information

In Week 1 we propose the set of assumptions and the framework of our discussion. We will discuss perfect capital markets and see how the deviations from this idealized model that are observed in our real life result in the demand for financial intermediation and for the services of financial institutions. We will discuss the fundamental problems caused by the existence of private information (moral hazard и adverse selection) and the damage they lead to. Based on the most simplistic models you will be able do delve deeper into the core of these problems and to evaluate their potential scale. You will learn what role the moral hazard plays in insurance, and how the adverse selection and moral hazard problems reduce the efficiency of lending....
Reading
12 vidéos (Total 104 min), 6 lectures, 2 quiz
Video12 vidéos
1.1. Introduction – perfect capital markets5 min
1.2. Demand for the financial intermediation6 min
1.3. Model of private information – key assumptions6 min
1.4. Model of moral hazard14 min
1.5. Co-insurance as a market solution to the moral hazard problem4 min
1.6. Moral hazard in insurance (1) – a more advanced model12 min
1.7. Moral hazard in insurance (2) – incomplete insurance8 min
1.8. Model of adverse selection11 min
1.9. Adverse selection in credit markets (1) – expected cash flows to the bank12 min
1.10. Adverse selection in credit markets (2) – credit rationing8 min
1.11. Moral hazard from increasing interest rates9 min
Reading6 lectures
Konstantin Kontor10 min
AIBEc. The American Institute of Business and Economics10 min
Grading10 min
Handouts – an important comment10 min
1.1. Why do financial institutions exist?10 min
1.2. Problems caused by private information10 min
Quiz2 exercices pour s'entraîner
1 (Practice)20 min
1 - Moral hazard, adverse selection, and the adventures of the greedy monopolist bank min
Week
2
Clock
3 heures pour terminer

ALLEVIATION OF MORAL HAZARD – DEBT AND EQUITY CONTRACTS. BANKS (1) – DIVERSIFICATION AND MONITORING

In Week 2 we will consider certain ways of overcoming problems caused by private information and evaluate them. We will know why some methods work while others don’t, and why. You will learn the core differences between equity and debt financing, study debts contracts with liquidation and see the core inefficiency of that kind of a debt contract. Based on a simple model you will study diversification and delegated monitoring and see how they contribute to the efficiency of lending. We will find out how a bank emerges as a key financial intermediary responsible for asset monitoring. You will be able to see why the bank can make money and to calculate its profit in different cases. At the end of Week 2 we will pose a fundamental question: How does the bank attract depositors?...
Reading
7 vidéos (Total 50 min), 2 lectures, 2 quiz
Video7 vidéos
2.2. Debt contract with liquidation (DCL) as a means of alleviation of moral hazard. The inefficiency of DCL6 min
2.3. Monitoring as a universal and efficient way of overcoming unobservability5 min
2.4. Multiple lenders (1) – the model8 min
2.5. Multiple lenders (2) – bank contracts5 min
2.6. Delegated monitoring (1) – the interaction of the parties and bank’s profit12 min
2.7. Delegated monitoring (2) – banks’ vulnerability to runs5 min
Reading2 lectures
2.1. Alleviation of moral hazard – debt and equity contracts min
2.2. Diversification and the feasibility of delegated monitoring10 min
Quiz2 exercices pour s'entraîner
2 (Practice)20 min
2 - Debt contracts and the anatomy of bank financing min
Week
3
Clock
3 heures pour terminer

Banks (2) – Asset Transformation and Liquidity Creation. Banks’ Vulnerability with Respect to Runs

Week 3 of the Course is devoted to the analysis of creation of liquidity – namely, we do answer the question of how a bank attracts depositors. You will get introduced to asset transformation and will learn how the presence of banks in capital markets makes the money circulation in the economy more efficient. You will analyze the market participants’ preferences and the “safety cushion” of a bank. We will study the mechanism of bank runs and feel how vulnerable the bank is with respect to runs. You will learn what methods of fighting bank runs have been used in centuries, and realize why the role of government in regulating of the banking business is so important. We will discuss deposit insurance as a universal and effective mechanism of preventing runs....
Reading
8 vidéos (Total 74 min), 2 lectures, 2 quiz
Video8 vidéos
3.2. Liquidity creation (1) – the model of liquidity11 min
3.3. Liquidity creation (2) – the mechanism10 min
3.4. Banks’ vulnerability with respect to runs15 min
3.5. Ways to fight bank runs (1) – suspension of convertibility4 min
3.6. Ways to fight bank runs (2) – deposit insurance9 min
3.7. Problems of deposit insurance12 min
3.8. Deposit insurance and the need to regulate6 min
Reading2 lectures
3.1. Banks – illiquid asset transformation10 min
3.2. Banks – creation of liquidity and bank runs10 min
Quiz2 exercices pour s'entraîner
3 (Practice)20 min
3 - Asset transformation – “black boxes” and “red triangles” min
Week
4
Clock
3 heures pour terminer

Bank Regulation and Reform. Payment Services. Mobile Banking. Bank 3.0

Week 4 of the Course consists of two parts. The first part is devoted to the discussion of challenges and development of banking regulation. We consider the S&L market crash of the 1980’s as a trigger to the initiation of the worldwide regulatory movement. You will get introduced to the Basel process as the basis of the modern bank regulation. The second part of Week 4 shifts focus somewhat. We will talk about the payment services that are tantamount to banking for the majority of population, at least in the developed world. We will discuss how the fast development of IT technologies, the Internet and the social media influences banking business. But we will see that the most important functions of banking – asset monitoring and liquidity creation – do not disappear but take a new shape. At the very end we will drop a few words about private banking – a very specific area of banking services for high net worth individuals....
Reading
8 vidéos (Total 78 min), 1 lecture, 2 quiz
Video8 vidéos
4.2. The S&L crisis of the 1980’s. Zombie S&L’s. The sources and reasons of bank regulation8 min
4.3. Bank regulation (1) – nature, goals, and importance13 min
4.4. Bank regulation (2) – mechanism. The Basel Accords14 min
4.5. Payment services – history, development, and technology5 min
4.6. Mobile banking (1) – technology and services. Bank 3.011 min
4.7. Mobile banking (2) – loans and monitoring at Bank 3.012 min
4.8. Private banking. Mobile banking and traditional banking – from conflict to synergy7 min
Reading1 lecture
4. Bank regulation and reform – an overview of articles10 min
Quiz2 exercices pour s'entraîner
4 (Practice)20 min
4 - From the Great Depression to Bank 3.0 min

Enseignant

Konstantin Kontor

Director and Professor of Finance and Strategy
American Institute of Business and Economics (AIBEc)

À propos de Moscow Institute of Physics and Technology

Московский физико-технический институт (неофициально известный как МФТИ или Физтех) является одним из самых престижных в мире учебных и научно-исследовательских институтов. Он готовит высококвалифицированных специалистов в области теоретической и прикладной физики, прикладной математики, информатики, биотехнологии и смежных дисциплин. Физтех был основан в 1951 году Нобелевской премии лауреатами Петром Капицей, Николаем Семеновым, Львом Ландау и Сергеем Христиановичем. Основой образования в МФТИ является уникальная «система Физтеха»: кропотливое воспитание и отбор самых талантливых абитуриентов, фундаментальное образование высшего класса и раннее вовлечение студентов в реальную научно-исследовательскую работу. Среди выпускников МФТИ есть Нобелевские лауреаты, основатели всемирно известных компаний, известные космонавты, изобретатели, инженеры....

À propos de American Institute of Business and Economics

The American Institute of Business and Economics (AIBEc) offers a wide variety of business courses in finance, accounting, marketing, strategy, HR, business law, economics, general management, business psychology, as well as course projects and the Field study. AIBEc provides for flexibility and customization of programs and schedules....

À propos de la Spécialisation Understanding Modern Finance

This Specialization is designed for a wide audience of those interested in finance either professionally or just of curiosity, including managers of different levels specializing in finance, accounting, business planning, strategy, consulting, and project management, IT specialists engaged in the area of finance, fin-tech, big data, and valuation, etc. Through four courses and the final Project, you will cover the theory and practice of capital markets and financial institutions, corporate finance and project valuation, financial and managerial accounting as applied to finance, as well as the M&A market as the ultimate judge of financial efficiency and value creation. The Specialization will prepare you to understand and use the applications of financial ideas, concepts, models, strategies, and tools to build a successful career in finance and in business, as well as to take advantage of opportunities offered by financial markets....
Understanding Modern Finance

Foire Aux Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

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