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Public Events


Raghuram Rajan (Professor of Finance at Chicago Booth)

Monday 11 March 2019 18:30 - 20:00

Old Theatre, Ground Floor, Old Building, LSE, Houghton Street, London WC2A 2AE


Monday 11 and Tuesday 12 March

Location:LSE OLD THEATRE, Houghton Street, London WC2A 2AE

Time: 18:30- 20:00

Speakers:Professor Raghuram Rajan (Chicago)


Lecture 1 - Why banks?
This lecture will focus on why banks have the structure they have - long term illiquid assets financed by short term runnable liabilities. It will explain why the risk of runs is inherent in the business of banking and cannot be eliminated without impinging on that business.

Lecture 2 - The two faces of liquidity
This talk will focus on why anticipation of high liquidity can be detrimental for the financial system, increasing leverage, the system's dependence on the liquidity materializing, and lowering good governance practices.


A bank's issuance of short-term demandable or overnight claims in order to finance illiquid loans leads to panics. Since the dawn of banking in Assyria and Sumeria, long before we had central banks, deposit insurance, or a tax advantage to debt, banks have had this structure, and critics have been troubled by it, as they are today. Professor Rajan will argue that this structure of banks - financing illiquid loans with short term or demandable debt - is not just a bug in the system, it is also a feature.

Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth. Raghuram was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016 and from 2003 and 2006, he was the Chief Economist and Director of Research at the International Monetary Fund.

This event is free to attend and places are offered on a first-come-first-serve basis on the night

For up-to-date information on how to attend, please visit the central LSE Events webpage:

Lecture 1:
Lecture 2:

This event will take place in Old Theatre, Ground Floor, Old Building, LSE, Houghton Street, London WC2A 2AE.

The building is labelled on the map.

LSE Campus Map