Banking

Theory and Evidence

Author

Rajesh Narayanan

Published

February 2026

Preface

These notes accompany FIN 7650: Banking at LSU. They are designed as a self-contained reference covering the theory and evidence on financial intermediation.

The notes develop formal models with complete derivations and intuitive explanations, so that students can use them for both lecture preparation and exam review.

How to Use These Notes

Each chapter corresponds to a lecture topic. The chapters contain:

Full mathematical derivations with all intermediate steps shown
Economic intuition explaining the “why” behind each result
Diagrams and figures illustrating key concepts
Callout boxes highlighting definitions, propositions, and key insights

For condensed lecture slides, see the companion slide decks in the Lectures folder.

Course Information

Course: FIN 7650 — Banking
Instructor: Rajesh Narayanan
Department: Finance, LSU Business