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


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


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


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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