| Subject | Overview: Financial Crises, Past and Present 
 Banking using Asymmetric InformationDebt contracts and credit rationing
 Short term funding of banks: Deposits, money market debt, and leverage
 Problems of deposit contracts: Bank runs
 Long term bank assets: Fire sale value
 Credit risk, adverse information and bank runs
 Sustainable loss and bank equity
 
 Regulation of BanksReserve requirements
 Deposit insurance
 Capital-adequacy requirements
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                      | Study material | Core reading: 
 Eichberger / Harper, Financial Economics, Oxford 1997, Part II
 NBER working papers:
 Eichengreen / Bordo, No 8716Barro / Ursua, No 14760
 Reinhart / Reinhart, No 16334
 
 Journal of Economic Perspectives, vol 13/4,1999, pp 21 - 104, various authors on regulation of banks and financial markets
 Basel Committee on Banking Supervision (Basel I, II, III)www.bis.org
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