Robert Shiller, teaching Yale's Financial Markets course, argues that banks have survived so many centuries because they solve recurring problems of adverse selection and moral hazard. He traces interest rates and lending from Sumeria around 2000 BC through ancient Greece and Rome, the Song Dynasty, Renaissance Italy, and the goldsmith bankers of 16th and 17th century England. He walks through Douglas Diamond and Philip Dybvig's model of liquidity provision and bank runs, then turns to deposit insurance, covering the FDIC and the Federal Savings and Loan Insurance Corporation's role in the 1980s savings and loan crisis. A detailed section works through Basel III capital requirements with an explicit numerical example, followed by critics' objections to common equity rules. The lecture closes with a survey of international banking crises since the 1990s, including Mexico in 1994-1995 and the Asian crisis of 1997.