About this Course
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Flexible deadlines

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Intermediate Level

Approx. 27 hours to complete

Suggested: 6 hours/week...

English

Subtitles: English
Learners taking this Course are
  • Presidents
  • Accountants
  • Financial Analysts
  • Chief Executive Officers (CEOs)
  • Business Analysts

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Intermediate Level

Approx. 27 hours to complete

Suggested: 6 hours/week...

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
4 hours to complete

Perfect Capital Markets. Problems Caused by Private Information

12 videos (Total 104 min), 6 readings, 2 quizzes
12 videos
1.1. Introduction – perfect capital markets5m
1.2. Demand for the financial intermediation6m
1.3. Model of private information – key assumptions6m
1.4. Model of moral hazard14m
1.5. Co-insurance as a market solution to the moral hazard problem4m
1.6. Moral hazard in insurance (1) – a more advanced model12m
1.7. Moral hazard in insurance (2) – incomplete insurance8m
1.8. Model of adverse selection11m
1.9. Adverse selection in credit markets (1) – expected cash flows to the bank12m
1.10. Adverse selection in credit markets (2) – credit rationing8m
1.11. Moral hazard from increasing interest rates9m
6 readings
Konstantin Kontor10m
AIBEc. The American Institute of Business and Economics10m
Grading10m
Handouts – an important comment10m
1.1. Why do financial institutions exist?10m
1.2. Problems caused by private information10m
2 practice exercises
1 (Practice)20m
1 - Moral hazard, adverse selection, and the adventures of the greedy monopolist bank1h
Week
2
3 hours to complete

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

7 videos (Total 50 min), 2 readings, 2 quizzes
7 videos
2.2. Debt contract with liquidation (DCL) as a means of alleviation of moral hazard. The inefficiency of DCL6m
2.3. Monitoring as a universal and efficient way of overcoming unobservability5m
2.4. Multiple lenders (1) – the model8m
2.5. Multiple lenders (2) – bank contracts5m
2.6. Delegated monitoring (1) – the interaction of the parties and bank’s profit12m
2.7. Delegated monitoring (2) – banks’ vulnerability to runs5m
2 readings
2.1. Alleviation of moral hazard – debt and equity contracts1h
2.2. Diversification and the feasibility of delegated monitoring10m
2 practice exercises
2 (Practice)20m
2 - Debt contracts and the anatomy of bank financing1h
Week
3
3 hours to complete

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

8 videos (Total 74 min), 2 readings, 2 quizzes
8 videos
3.2. Liquidity creation (1) – the model of liquidity11m
3.3. Liquidity creation (2) – the mechanism10m
3.4. Banks’ vulnerability with respect to runs15m
3.5. Ways to fight bank runs (1) – suspension of convertibility4m
3.6. Ways to fight bank runs (2) – deposit insurance9m
3.7. Problems of deposit insurance12m
3.8. Deposit insurance and the need to regulate6m
2 readings
3.1. Banks – illiquid asset transformation10m
3.2. Banks – creation of liquidity and bank runs10m
2 practice exercises
3 (Practice)20m
3 - Asset transformation – “black boxes” and “red triangles”1h
Week
4
3 hours to complete

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

8 videos (Total 78 min), 1 reading, 2 quizzes
8 videos
4.2. The S&L crisis of the 1980’s. Zombie S&L’s. The sources and reasons of bank regulation8m
4.3. Bank regulation (1) – nature, goals, and importance13m
4.4. Bank regulation (2) – mechanism. The Basel Accords14m
4.5. Payment services – history, development, and technology5m
4.6. Mobile banking (1) – technology and services. Bank 3.011m
4.7. Mobile banking (2) – loans and monitoring at Bank 3.012m
4.8. Private banking. Mobile banking and traditional banking – from conflict to synergy7m
1 reading
4. Bank regulation and reform – an overview of articles10m
2 practice exercises
4 (Practice)20m
4 - From the Great Depression to Bank 3.01h
4.6
7 ReviewsChevron Right

Top reviews from Capital Markets and Financial Institutions – How to Survive Them

By ECSep 14th 2018

Good course with a lot of clues where to dig further.\n\nIt makes you understand the mechanics behind many financial decisions.

By DHNov 13th 2018

The pace of the course is great, I gladly will recommend this to others foe quality reference.

Instructor

Avatar

Konstantin Kontor

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

About Moscow Institute of Physics and Technology

Московский физико-технический институт (Физтех) является одним из ведущих вузов страны и входит в основные рейтинги лучших университетов мира. Институт обладает не только богатой историей – основателями и профессорами института были Нобелевские лауреаты Пётр Капица, Лев Ландау и Николай Семенов – но и большой научно-исследовательской базой. Основой образования в МФТИ является уникальная «система Физтеха», сформулированная Петром Капицей: кропотливый отбор одаренных и склонных к творческой работе абитуриентов; участие в обучении ведущих научных работников; индивидуальный подход к отдельным студентам с целью развития их творческих задатков; воспитание с первых шагов в атмосфере технических исследований и конструктивного творчества с использованием потенциала лучших лабораторий страны. Среди выпускников МФТИ — нобелевские лауреаты Андрей Гейм и Константин Новоселов, основатель компании ABBYY Давид Ян, один из авторов архитектурных принципов построения вычислительных комплексов Борис Бабаян и др....

About 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....

About the Understanding Modern Finance Specialization

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

Frequently Asked 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.

More questions? Visit the Learner Help Center.