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Rustom Manouchehri Irani

The purpose of this course is to provide you with a basic understanding of the connections between money, the financial system, and the broader macroeconomy. We will examine the economics of modern financial institutions (e.g. banks), including how they are organized, the products and financial services they offer, the risks they take, why and how they are regulated, and how this has changed over time. We will develop a conceptual framework that will allow us to assess how recent financial regulations as well as innovations in finance (e.g., securitization, fintech, cryptocurrencies) may influence the macroeconomic, financial, and business environment.

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Syllabus

Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
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Module 1: Money and Finance
This module will provide a broad overview of money, the financial system, and how this all connects with real economic activity.
Module 2: Modern Banking
In this module, we are going to zoom in on the business model of modern banks.
Module 3: Risk and Return
In this module, we are going to focus on the sources of profit at modern banks and the various risks surrounding these profits.
Module 4: Regulation
In this Module we are going to study why the government regulates banks, and what this regulation looks like in practice.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Teaches skills, knowledge, and tools that are highly relevant to industry
Strong fit with a particular audience, either based on learners experience level, field, or interests
Develops professional skills or deep expertise in a particular topic or set of topics
Covers unique perspectives are ideas that may add color to other topics and subjects
Builds a strong foundation for beginners
Takes a creative approach to an otherwise established topic, field, or subject

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Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Banking and Financial Institutions with these activities:
Complete tutorials on securitization, fintech, and cryptocurrencies
Provides exposure to cutting-edge topics in the financial industry.
Browse courses on Financial Innovation
Show steps
  • Search for tutorials.
  • Follow the tutorials.
  • Complete the exercises.
  • Summarize the key takeaways.
Develop a presentation on the role of financial institutions in the macroeconomy
Reinforces understanding of the interconnectedness of financial institutions and macroeconomic outcomes.
Browse courses on Monetary Policy
Show steps
  • Research the topic.
  • Identify key concepts.
  • Outline the presentation.
  • Gather data and evidence.
  • Create slides and visual aids.
Create a blog post on the impact of financial regulation on the banking industry
Applies knowledge of financial regulation to a real-world context.
Browse courses on Financial Regulation
Show steps
  • Research the topic.
  • Identify key issues.
  • Gather data and evidence.
  • Write the blog post.
  • Publish the blog post.
One other activity
Expand to see all activities and additional details
Show all four activities
Volunteer at a non-profit organization focused on financial literacy
Provides practical experience in applying financial concepts and enhances understanding of financial empowerment.
Browse courses on Financial Literacy
Show steps
  • Identify a non-profit organization.
  • Contact the organization.
  • Attend training.
  • Participate in activities.
  • Reflect on your experience.

Career center

Learners who complete Banking and Financial Institutions will develop knowledge and skills that may be useful to these careers:
Investment Banker
Investment bankers help companies raise capital and provide financial advice. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, capital markets, and investment banking techniques.
Risk Manager
Risk managers identify and assess financial risks. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, risk management, and financial regulation.
Commercial Banker
Commercial bankers provide financial services to businesses. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, commercial lending, and risk management.
Actuary
Actuaries use mathematical and statistical methods to assess risk. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, risk management, and statistics.
Financial Planner
Financial planners help people plan for their financial future. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, investment planning, and retirement planning.
Financial Manager
Financial managers oversee the financial health of an organization. This course will provide learners with the skills and knowledge needed to succeed in this role, including an understanding of financial institutions, risk management, and financial planning.
Loan Officer
Loan officers help people get loans. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, lending products, and risk management.
Financial Advisor
Financial advisors provide financial advice to individuals and families. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, investment planning, and retirement planning.
Budget Analyst
Budget analysts help organizations plan and manage their budgets. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, budgeting, and financial analysis.
Auditor
Auditors examine financial records to ensure accuracy and compliance. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, auditing standards, and financial analysis.
Tax Accountant
Tax accountants help individuals and businesses comply with tax laws. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, tax laws, and accounting principles.
Financial Analyst
Financial Analysts are responsible for weighing various investment options to choose the one most likely to produce a profit. By taking this course, learners will gain a solid understanding of modern banking, risk, return, and regulation. With this knowledge, graduates will be better prepared to assess the risks and rewards of different investment opportunities and make sound financial decisions.
Forensic Accountant
Forensic accountants investigate financial crimes. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, forensic accounting techniques, and financial analysis.
Insurance Agent
Insurance agents sell insurance policies to individuals and businesses. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, insurance products, and risk management.
Real Estate Agent
Real estate agents help people buy and sell real estate. This course will provide learners with the knowledge and skills needed to succeed in this role, including an understanding of financial institutions, real estate markets, and real estate law.

Reading list

We've selected 12 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Banking and Financial Institutions.
Standard textbook on the economics of money, banking, and financial markets. It provides a comprehensive overview of the financial system and its role in the economy. It is written in a clear and concise style and is suitable for both undergraduate and graduate students.
Provides a comprehensive overview of financial crises, including their causes, consequences, and policy responses. It is written by a leading expert on financial crises and valuable resource for anyone who wants to understand this important topic.
Critique of the modern banking system. It argues that the system is too complex and risky and that it needs to be reformed. It is written by two leading economists and valuable resource for anyone who wants to understand the problems with the banking system.
Guide to investing in the stock market. It is written by John C. Bogle, the founder of Vanguard Group. The book provides simple and practical advice on how to invest for the long term.
Classic guide to investing. It is written by Benjamin Graham, the father of value investing. The book provides timeless advice on how to invest for the long term.
Classic guide to security analysis. It is written by Benjamin Graham and David Dodd, two of the most influential investors of all time. The book provides a detailed framework for analyzing stocks and bonds.
Memoir by George Soros, one of the most successful hedge fund managers of all time. The book provides insights into Soros's investment philosophy and his thoughts on the financial markets.
Fictionalized account of the life of Jesse Livermore, one of the most successful traders of all time. The book provides insights into Livermore's trading philosophy and his thoughts on the financial markets.
Behind-the-scenes account of how John Paulson made $20 billion betting against the subprime mortgage market. The book provides insights into Paulson's investment philosophy and his thoughts on the financial markets.

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