Advanced Money Credit and Banking, ( FEM11015)

Essay Assignment (20% of grade)

You are asked to write an editorial in the style of the Economist. The topic of the essay is
Systemic Risk in the Financial Sector relative to other Sectors.

Analyze the Systemic Risk of at least two financial firms (banks or insurers) and two non-financial
firms. Of course you may also look at different combinations, i.e. compare a bank with an oil
company, etc. Use the spread sheet that is provided to estimate the risks on basis of the count
procedure as used in the spreadsheet and as explained in class. Compare the outcomes and provide
a short economic analysis. What causes these differences? What implications do you draw from the
analysis?

Requirements:

• Basic layout, yet readable (i.e. you won't earn a higher grade by choosing some fancy
layout, but you may lose points if it is bad).
• Write in your own words! Hence it should not be a summary of other publications;
include references if you use any.
• Do not overly engage in journalistic rhetoric’s, stick to economics and the facts. But a
concluding punchline may drive home the message of your essay.
• Focus on just one or two issues and leave others aside, you only have 500 words to
tell your story.
• Do not use pictures, but a figure based on your data is fine. Only use a few section
headings, if any.
• Single column format; either Times New Roman (font size 12) or Arial (11). The
main text may not to exceed 500 words!
• A Table with your results from estimation is mandatory; a figure is optional. Create
the Table yourself. Provide the raw data source. Explain what you did to the data.
You may add an appendix. The appendix does not count for the word limit.
• You are advised to include a short appendix at the end that clarifies your data analysis
(it should be entirely clear what series you used, where you got the data (data source)
and how you manipulated these). A footnote to the Table or Figure in the main text
should concisely clarify the contents of the figure and/or table. Start this section with
the heading Appendix. Words in the appendix do not count for the word limit! So the
appendix can be longer if it need be.
• No collaboration with fellow students!
• Indicate your name, student number & the word count at the Top of
your document as follows:
- Name …
- Student # …
- Word Count …
Failure to comply with these requirements will result in loss of points.
Your essay is graded on the basis of:
Originality, scientific content, support for claims, writing style and layout.
Deadline for handing in your essay:
Thursday, Week 5, October 3, 13:00 pm. Both a hard copy and an electronic copy need
to be submitted. A strict deadline is enforced, no late submissions are accepted.

Submit your essay in two ways: 1/ electronically via the Safe Assignment module on Canvas
and 2/ in hard copy at the secretariat of the economics department, E Bldg. EB-05. A drop
box will be placed on the counter. Alternatively, hand your hard copy version in at the start of
the lecture on October 5.

Note that your essay will be checked for plagiarism.