This module provides a general introduction to the underlying economic theories in the banking sector. These theories will help students explain the strategic decisions as well as the operations of the bank. Specifically, the course will provide knowledge about the role of a bank - a special financial institution, the phenomenon of asymmetric information in banking activities, especially credit and credit risk, as well as prevention methods. The content also includes theories related to the role of regulations in banking activities, the structure of banking activities and banking relationships with customers and especially the banking crisis in each economic period.