Contemporary Issues in Banking

Module Code BFIP036
Semester Autumn
Prerequisite N/A
Level 11
Credit Value 20
Module Co-ordinator Dr Serafeim Tsoukas
Assessment 40% Coursework, 60% examination

MODULE INTRODUCTION, AIMS AND OBJECTIVES

The module attempts to develop knowledge on the interactions among bank behaviour, market structure, and regulation.

The main aims of the course are to:

  • provide students with the basic theory of modern banking firms (the function, structure and environment of banking)
  • critically analyse economic theories, trends and the UK economic environment
  • critically review the involvement of banks in the international money, credit and bond markets
  • examine the way in which public finance issues in the economy affect banks and critically analyse the implications of government shareholding in banks
  • discuss the structure of the banking industry and concepts of competition and regulation
  • examine the importance of imperfect information between parties in credit relationships, and discuss the problems of adverse selection and moral hazard
  • critically analyse the competitive environment in which banks operate
  • analyse the functioning of banks, understand their financial statements and risk management problems
  • discuss cases of bank runs, and the importance of bank health
  • critically review the latest trends in innovation and technology in banking
  • analyse the role distress in the financial sector during the most recent financial crisis

LEARNING OUTCOMES AND SKILLS DEVELOPED

By end of the study, students are expected to be able to:

  • Understand the main theories and practices underlying modern banking and financial firms’ business
  • Explain different perspectives on the relationship between bank market structure and bank behaviour
  • Understand the core principles of money and the financial system
  • Have a sound knowledge of how to analyse the financial condition of banks using both traditional financial ratios and advanced quantitative techniques
  • Understand the main economic fundamentals of banks’ activities
  • Assess the relationship between bank market structure, competition and the stability of the banking industry
  • Have knowledge of Central banking: monetary policy instruments, independence and accountability
  • Understand the impact of recent regulatory changes on the structure of international banking markets
  • Evaluate the reasons and possible remedies for bank failure

RECOMMENDED READING LIST

The core text book for this module is:

Mishkin, F. (2016). The Economics of Money, Banking and Financial Markets, Global Edition, 11th edition update, Pearson Education, ISBN 978-0-133-83679-0.

Chartered Banker, Contemporary issues in Banking, Study text 2014/15, ISBN 978-1-4727-0500-6

Additional readings:

Casu, B., Girardone, C., Molyneux, P. (2006). Introduction to Banking, FT Prentice Hall, ISBN: 978-0-273-69302-4

Hubbard, R.G. (2008). Money, the Financial System and the Economy, 6th edition, Pearson-Addison Wesley, ISBN: 978-0-321-46954-0

Matthews, K., Thompson (2008). The Economics of Banking, Willey, 2nd edition, ISBN: 978-0-470-51964-6

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