Modelling Risky Financial Institutions

The course is supported by the OP Research Foundation’s Research Group on Financial Institutions and organized in collaboration with the Graduate School of Finance (GSF).

Time: Monday 9.6.2025 – Friday 13.06.2025

Location: University of Jyväskylä, Jyväskylä University School of Business and Economics, FINLAND, Mattilanniemi Campus

Registrations: The deadline for registrations to this course is May 25, 2025. See registration/application details at the bottom of the page.

Teaching: Associate Professor David Martinez-Miera, University Carlos III de Madrid, Spain

NFN Travel Grant: NFN offers Travel Grants for attending PhD students in finance coming from Nordic institutions outside of Finland. To apply for the Travel Grant, please use the below form and send it to nfn(at)aalto.fi.

Downloadable file NFN Travel Grant Application (.xlsx) (aalto.fi)

Teaching: 20 h of lectures (20 x 45 minutes)

Classroom: AgD211.1. Agora Building, University of Jyväskylä, Mattilanniemi Campus

Daily teaching schedule:

Monday 9.6. at 14-17 (3 hours)
Tuesday 10.6. at 10-13, lunch at 13-14 and at 14-16 (5 hours)
Wednesday 11.6. at 10-13, lunch at 13-14 and at 14-16 (5 hours)
Thursday 12.6. at 10-13, lunch at 13-14 and at 14-16 (5 hours)
Friday 13.6. at 10-12 (2 hours)

Course objective: The main objective of this course is to understand the key mechanisms underlying the risk-taking behavior of banks and their consequences for the real economy. The course present different setups that allow the participant to better understand:

1. The relevance of imperfect information in the credit market
2. The role of financial institutions in the economy
3. Banks' risk strategies and their impact on the overall allocation of capital in the economy
4. The role of banks and other agents in determining the inherent instability of the economy
5. The logic and possible unintended consequences underlying banking regulation

Reading List: Modelling Risky Financial Institutions Reading List

Lecture Notes:

• Financial Frictions and Information
• Financial Intermediaries and Monitoring
• Financial Intermediaries and wealth
• IO Approach to Banking
• Bank Competition and Bank Risk
• Capital Requirements in Banking
• Bank Competition and Risk II
• Monetary Policy and Bank Competition
• Bank and Non Bank Competition
• Brief Macrofinance Perspective
• Bank Runs
• Global Games
• Markets, Banks and Shadow Banks

Credit Units: 6 ECTS cr.

List of participants:

1. Alikärri, Iiro / University of Jyväskylä
2. Bahramisani, Ali / Stockholm School of Economics
3. Bloch, Jakob Thomsen / Aarhus University
4. Ghavamabadi, Sina / Aalto University
5. Liu, Jiayi / University of Jyväskylä
6. Martins, Catarina / Stockholm School of Economics
7. Ruuhela, Jussi / University of Vaasa
8. Saarelma, Kalle / University of Helsinki
9. Shama, Aishath / University of Oulu
10. Soininen, Tomi / University of Jyväskylä
11. Tauriainen, Juha-Matti / University of Jyväskylä
12. Weerasekara, Buddhi / University of Vaasa
13. Xu, Kanying / University of Vaasa

Participants: Doctoral students in finance. The course is also open for KATAJA as well as FDPE and Helsinki GSE students with sufficient background in finance and/or economics. The course is also open for foreign doctoral students given that there is space in the course.

Examinations: TBA

Registration/Application:

• Doctoral students of GSF, FDPE and Helsinki GSE: Please register through this link.
• Doctoral students in related fields and doctoral students at foreign universities: Application form can be found below (both in PDF and Word format). In addition to the application form, please also send a report on the status of your doctoral studies, and a brief CV. Please also ask your thesis advisor to send us a short letter of recommendation by-email. All the required documents should be sent by e-mail to gsf(at)aalto.fi. All applicants will be informed of their acceptance soon after the registration deadline.

Downloadable file Course application (.pdf) (aalto.fi)

Downloadable file Course application (.doc) (aalto.fi)

The deadline for registrations to this course is May 25, 2025.

Further information, local organizer:
Kari Heimonen
Professor
Jyväskylä University School of Business and Economics
kari.o.heimonen@jyu.fi