Money & Banking

Learn how banks manage credit risk through screening, monitoring, relationship banking, loan commitments, collateral, credit rationing, and off-balance-sheet activities. Covers the 5 Cs of credit, Barings Bank collapse, and Washington Mutual failure.

Learn how the financial system channels funds from savers to borrowers through financial markets and intermediaries, including direct vs indirect finance, money vs capital markets, and why financial intermediaries exist.

Learn why banks are regulated, how FDIC deposit insurance works, the moral hazard it creates, the too-big-to-fail problem, and the regulatory toolkit including capital requirements, CAMELS ratings, and prompt corrective action.

Learn how banks manage their balance sheets — assets, liabilities, capital, and profitability. Covers ROA, ROE, NIM, liquidity management, and the asset vs liability management trade-off per Mishkin Ch 9.