Module overview
Banks are at the heart of the global financial system. This module strives to link the theory and practice of banking in a real-world setting. Considerable attention is given to the vast array of risks that banks face and this is achieved by learning about the management and measurement of these various risks. Also, the module looks at financial/banking crises and the impact that these have on the wider economy especially over the past number of years since the global financial crisis of 2008. This module also covers how to measure bank performance and looks in detail at the case for banking regulation. Finally, this module will cover some recent trends in banking activities including sustainability and green banking and disrupted financial technologies (Fintech).
Linked modules
Pre-requisites: ECON1001 or ECON1003 or ECON1009 or ECON1020 or ECON1022
Aims and Objectives
Learning Outcomes
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- evaluate the risks and rewards associated with different financial instruments, and financial institutional settings; understand key workings of financial markets and the economy in general;
- interpret official announcements and engage in public debates in the media and professional publications concerning financial and macroeconomic issues.
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- evaluate and interpret critically official publications by banks and authorities and compare this to empirical reality;
- evaluate data, and use it in order to act upon it;
- enhance your analytical and critical thinking capabilities.
Subject Specific Practical Skills
Having successfully completed this module you will be able to:
- understand the risks and potential rewards of certain financial instruments; understand better the workings of financial institutions and banks.
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- the need for appropriate regulation and supervision, and the actual regulation and bank behaviour observed in key markets.
- key available financial instruments and workings of financial markets, including roles of speculators, investors and bankers; the role and impact of banks in the economy and markets;
Syllabus
The material covered in this module will include, but not limited to, the following topics:
- Theories of Financial Intermediation.
- The Role of Banks in Financial Markets and the Macroeconomy
- Banks Financial Reports
- Banking Risk Measurement and Management
- Asset Liability Management
- Enterprise Risk Management in Banks
- Stress Testing of Banks
- Evaluation of Bank Performance
- Credit Creation and Monetary Policy
- Theory and Practice of Bank Regulation
- Bank Failures and Banking Crises
- Disruptive Fintech and Banking
- Sustainable, Responsible, and Ethical Banking
Learning and Teaching
Teaching and learning methods
Description Lectures, classes (with exercises).
| Type | Hours |
|---|---|
| Preparation for scheduled sessions | 40 |
| Wider reading or practice | 40 |
| Revision | 25 |
| Follow-up work | 11 |
| Seminar | 10 |
| Lecture | 24 |
| Total study time | 150 |
Resources & Reading list
Textbooks
Mishkin (2014). Economics of Money, Banking and Financial Markets. Pearson.
Mathews, Kent and Thompson, John (2014). The Economics of Banking. Wiley.
Saunders, Anthony and Marcia Millon Cornett (2018). Financial Institutions Management: A Risk Management Approach. McGraw-Hill.
Mishkin, Frederic and Eakins, Stanley (2018). Financial Markets and Institutions. Pearson.
Casu, Barbara, Claudia Girardone and Philip Molyneux (2015). Introduction to Banking. Prentice Hall.
Goddard, John and John Wilson (2016). Banking- A Very short Introduction. Oxford University Press.
Assessment
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
In-class activities
- Assessment Type: Formative
- Feedback: The class tutor will take you through the answers and explain the answers in detail.
- Final Assessment: No
- Group Work: No
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Written assessment | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Written assessment | 100% |
Repeat
An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.
| Method | Percentage contribution |
|---|---|
| Written assessment | 100% |
Repeat Information
Repeat type: Internal & External