nomics of Money, Banking, and Financial Markets

Dr. Karl-Peter Schackmann-Fallis Lecture: Regulation of Financial Markets Summer Term 2010

Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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Time and Place Friday, 13:15 – 14:45 Building 22A (Faculty of Economics & Management), Room 203

Lecture Calendar Friday, April 09th

no lecture, lecture changed to Friday, April 23rd, 11:45 – 12:45

Friday, April 16th

13:15 – 14:45

Friday, April 23rd

11:15 – 12:45 and 13:15 – 14:45

Friday, April 30th

13:15 – 14:45

Friday, May 07th

13:15 – 14:45


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Friday, May 14th

no lecture (day after ‘Himmelfahrt’)

Friday, May 21st

no lecture, participate in the VWL-Club (June 14th, 17:00-20:00)

Friday, May 28th

no lecture, participate in the VWL-Club (June 14th, 17:00-20:00)

Friday, June 04th

no lecture, lecture changed to Friday, June 18th, 15:30 – 17:00

Friday, June 11th

no lecture, lecture changed to Wednesday, June 23rd, 17:00 – 18:30

Monday, June 14th

VWL-Club: “Deutsche Bundesbank and Banking Supervision in Germany” (17:00 – 20:00)


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Friday, June 18th

15:30 – 17:00 and 17:15 – 18:45 (G22A-110)

Wedn., June 23rd

17:00 – 18:30 and 18:45 – 20:15 (G22A-110)

Friday, June 25th

13:15 – 14:45

Friday, July 02nd

no lecture, lecture changed to Friday, June 23rd, 18:45 – 20:15

Friday, July 02nd

written examination, 13:00 – 14:00


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Course Outline 1. Structure of the German Banking Market Additional Readings Howells, P. G. A./K. Bain 2008, “The German Financial System“, The Economics of Money, Banking and Finance: A European Text, 4th ed., 124-134 Krahnen, J. P./Schmidt, R. H. (Eds.) 2004, The German Financial System, Chapters 2, 3 and 7

2. Economic Functions of Banks Additional Readings De Haan, J./S. Oosterloo/D. Schoenmaker 2009, “Functions of the Financial System”, European Financial Markets and Institutions, 3-32 Mishkin, F. S. 2010, “An Economic Analysis of Financial Structure”, The Economics of Money, Banking, and Financial Markets: Global Edition, 9th ed., 169-197 Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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3. Banking Regulation 3.1. Economic Justification for Banking Regulation Additional Readings Freixas, X./J.-C. Rochet 2008, “The Regulation of Banks”, Microeconomics of Banking, 2nd ed., 305-348 Mishkin, F. S. 2010, “Economic Analysis of Banking Regulation”, The Economics of Money, Banking, and Financial Markets: Global Edition, 9th ed., 255-279

3.2. Legal Competences and Institutional Structures of Banking Regulation on EU-Level Additional Readings De Haan, J./S. Oosterloo/D. Schoenmaker 2009, “European Financial Integration”, European Financial Markets and Institutions, 33-60 Kotz, H.-H. 2007, “Europeanization of Financial Market Regulation: Conceiving a New Model by Default?”, Droit et Société, No. 65, 75-91 Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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3.3. Regulatory Requirements in Germany Additional Readings Howells, P. G. A./K. Bain 2008, “The Regulation of Financial Markets“, The Economics of Money, Banking and Finance: A European Text, 4th ed., 547570 Scherer, P./S. Zeller (Eds.) 2009, Banking Regulation in Germany, Frankfurt a. M.

4. From the US-Subprime Crisis to the International Banking and Financial Crisis Additional Readings Hellwig, M. F. 2009, “Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis”, De Economist, Vol. 157(2), 129-207 Mishkin, F. S. 2010, “Financial Crises and the Subprime Meltdown”, The Economics of Money, Banking, and Financial Markets: Global Edition, 9th ed., 199-224 Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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5. Lessons to Be Learnt: Developments in Banking Regulation and in Banking Industry 5.1. G-20 Summits: Towards a New Global Regulation Framework Additional Readings De Grauwe, P./T. Mayer/K. Lannoo 2008, “Lessons from the Financial Crisis: New Rules for Central Banks and Credit Rating Agencies?“, Intereconomics, Vol. 43(5), 256-266 Leaders’ Statement: Washington, London and Pittsburgh Summits, www.g20.org

5.2. European Regulatory Responses to the Crisis Additional Readings Brunnermeier, M./A. Crockett/C. Goodhart/A. D. Persaud/ H. Shin 2009, “The Fundamental Principles of Financial Regulation”, Geneva Reports on the World Economy, No. 11 De Haan, J./S. Oosterloo/D. Schoenmaker 2009, “Financial Regulation and Supervision”, European Financial Markets and Institutions, 299-333 Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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5.3. Regulatory Reforms in Germany Additional Readings German Council of Economic Experts (Sachverständigenrat) 2008, Mastering the Financial Crisis – Strengthening Forces for Growth: Annual Report 2008/09 Summary, Wiesbaden German Council of Economic Experts (Sachverständigenrat) 2009, Securing the Future through Responsible Economic Policies: Annual Report 2009/10 Summary, Wiesbaden

5.4. Current Developments in the Banking Industry Additional Readings Franke, G./J. P. Krahnen 2008, “The Future of Securitization”, CFS Working Paper, No. 31 Mishkin, F. S. 2010, “Banking Industry: Structure and Competition”, The Economics of Money, Banking, and Financial Markets: Global Edition, 9th ed., 281-312 Dr. Schackmann-Fallis, Lecture: Regulation of Financial Markets, Otto-von-Guericke-University Magdeburg

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Other Information Final written examination (60 minutes) For lecture material visit Professor Gischer’s website: http://www.uni-magdeburg.de/vwlgeld/


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