101266-HS2025-0-Banking Theory





Root number 101266
Semester HS2025
Type of course Lecture
Allocation to subject Economics
Type of exam not defined
Title Banking Theory
Description *** IMPORTANT ***
For the most updated administrative course information (date changes, room changes etc) please always refer to the KSL page only and not to the Info page in ILIAS – the ILIAS infopage will not be updated!

Banks are central to the functioning of modern economies. They are among the most heavily regulated institutions, yet many recent crises—whether in Switzerland or elsewhere—have their roots in the banking sector. What should we make of this? Does it suggest that regulation is failing? Perhaps. But it also raises a deeper question: what if financial crises are not necessarily signs of market failure but are, under some circumstances, socially optimal? Without a well-defined model of banking, we are ill-equipped to answer such questions. The aim of this course is to develop the tools and frameworks needed to rigorously think about what banks do, why they exist, and how they ought to be regulated. We proceed by carefully building a baseline model of banking—deliberately simple, yet rich enough to capture key mechanisms. By the end of the course, students should be able to extend this model in meaningful ways and begin to ask their own research questions in this area.

Language: English
Credits: 3 SWS / 4.5 ECTS



Evaluation: take home exam: 15.01.2026


Lectures: Wednesdays, 14.15 - 17.00h, tba
ILIAS-Link (Learning resource for course) No registration/deregistration in CTS (Admission in ILIAS possible). ILIAS
Link to another web site
Lecturers Prof. Dr. Cyril MonnetDepartment of Economics 
ECTS 4.5
Recognition as optional course possible No
Grading 1 to 6
 
Dates Wednesday 14:15-17:00 Weekly
Thursday 15/1/2026 00:05-23:55
 
Rooms
 
Students please consult the detailed view for complete information on dates, rooms and planned podcasts.