Structure and content
You take four taught modules in the autumn, from September to December, and four more taught modules in the spring, from February to May. You will then write a dissertation in the summer, from June to August. In Semester 1 all students take the following modules:
- Economics for Business and Finance: This module introduces economics as a discipline. It focuses on aspects most relevant to later modules in the programme and to a career in banking and finance.
- Banking and Financial Institutions: Students will be introduced to the core principles of money, the financial system, financial institutions and financial instruments.
- Corporate Finance: This module analyses the major decision areas of corporate finance – how to raise funds and how to invest them. It examines both the theory and the practice of corporate financial decision-making and the interaction between decision-making and capital market behaviour.
- Quantitative Methods in Finance: This provides students with the key statistical concepts, methods and computing skills which are necessary to fully understand modern banking and finance operations.
In Semester 2 you will take one more compulsory module:
- Modern Banking: This module analyses the theory of modern banking firms. The topic covers the theoretical foundation of the banking industry, banking risks and risk management, structure-conduct-performance, competition and bank efficiency.
you will also take three optional modules chosen from (depends on the staff availibilty):
- Financial Modelling and Forecasting: This provides students with the theory and practice of econometric modelling of financial decisions and markets. Students will learn most recent tools required to model non-stationary time series and compute forecasts from financial econometric models.
- International Banking and Development Finance: This module introduces students to the basic knowledge and understanding of how banks operate at an international level. It will also provide an overview of financial instruments in a multi-currency world.
- Risk Management in Banking: This module analyses the sources of risk facing banks and will introduce students to the various methods that banks can adopt to evaluate and control these risks, including asset-liability management, value at risk, and credit scoring and credit portfolio models.
- Law of Banking and Finance: This introduces the core legal aspects of banking and finance, financial regulation in the UK and at international level.
- Mergers and Acquisitions: This provides an understanding of the finance, accounting and economics aspects of mergers, acquisitions, and other forms of corporate restructuring.
- Derivatives: This provides an understanding of options, forwards, futures and the foreign exchange markets. It emphasises the principles underlying the valuation of derivative securities, including valuation of forward and futures contracts, swaps and options and provides an introduction to the working of the foreign exchange market and the instruments traded on it.
- Investments and Portfolio Management: This provides an understanding of security valuation and portfolio management, focusing on equities and fixed-interest securities. It emphasises the principles underlying the valuation of bonds and stocks; and
- discusses the management of equity and bond portfolios, including the application of active and passive portfolio management strategies.
- International Corporate Finance: This examines key areas of finance in an international environment. It focuses on: the foreign exchange market; the relationship between exchange, interest and inflation rates; foreign exchange risk and its management; and the use of derivatives in international finance.
- Dissertation: In the summer you will complete a dissertation on a course-related topic approved by the Course Director.
Delivery and assessment
Modules are taught by a combination of lectures and small group teaching, in the form of seminars, workshops or computing labs. Assessment in most modules includes coursework, often a mid-semester test, and an end-of-semester examination. Resit examinations are available. Successful completion of the taught element of the course leads to the award of the Diploma or allows you to continue for the award of the MSc by completing dissertation based on an original research question agreed by yourself and your supervisor. The project should reflect your own understanding and knowledge of selected topics learnt during taught modules.
K Matthews and J. Thompson (2008) The Economics of Banking, Wiley, (2nd ed).
David Hillier, Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan, Corporate Finance: European Edition, McGraw-Hill International Edition, 2010.
Heffernan, S (2005), Modern Banking, Wiley. Brooks, C.. (2008), Introductory Econometrics for Finance, Cambridge University Press.
Ball Laurence M., 2012. Money, Banking and Financial Markets. 2nd Edition. Worth Publishers. ISBN: 978-1-4292-4409-1.
Madura, Jeff and Fox, Roland, International Financial Management, 1st edition, Thomson, 2007.
Semester 1 modules:
- BFIP25 Economics for Business and Finance
- BFIP16 Banking and Financial Institutions
- INVP01 Corporate Finance
- BFIP13 Quantitative Methods in Finance
Semester 2 modules:
- BFIP36 Modern Banking
- Financial modelling and forecasting
- International Banking and Development Finance
- Risk Management in Banking
- Law of banking and finance
- Mergers and Acquisitions
- Investments and Portfolio Management
- International Corporate Finance