Lecture
This lecture provides an introduction to the course on financial intermediation, outlining its goals and structure. The instructor emphasizes the importance of understanding the role of financial intermediaries, particularly banks, in the economy. The course aims to equip students with a conceptual framework rather than just technical skills, focusing on the functions of financial intermediaries, the risks they face, and the implications of their operations. Key questions addressed include the existence of banks, the structure of loan contracts, and the impact of regulation. The lecture also highlights the mix of theoretical models, empirical evidence, and case studies that will be used throughout the course. Students are encouraged to engage with current events in the financial sector, as real-world examples will be integrated into the curriculum. The lecture concludes with an overview of the planned course outline, including topics such as bank balance sheets, risk management, and the effects of technological innovations in finance.