Principles of Banking (N1577)

15 credits, Level 5

Spring teaching

This module is an introduction to both theoretical and practical issues related to the modern banking business.The module begins with an overview of the role and genesis of the financial system and the nature of financial intermediation.

It covers the main characteristics and types of banks (e.g., commercial and mutual; retail and wholesale; role of central banks) and analyses recent trends and developments in banking markets.

The module also explores the main items contained in banks' financial statements and explains how to assess bank performance by using basic financial ratios.

The second part of the module focuses on the main risks of banking, with particular reference to credit risk and liquidity risk, and outlines elementary risk management and asset and liability management techniques.

It examines the rationale for bank regulation and distinguishes between the different types of regulation, especially in relation to the recent financial crisis. Particular reference is made to the latest development on Basel III and Dodd–Frank Wall Street Reform and Consumer Protection Act.

The following topics will be covered:

  1. Banking Activities and the type of banking
  2. Theory of central bank and monetary policy
  3. Banks' balance sheet and income structure
  4. Managing Banks
  5. Banking Industry: Structure and Competition
  6. Banking risk management
  7. Banking crisis in 2008
  8. Bank regulation and supervision

Teaching

67%: Lecture
33%: Seminar

Assessment

30%: Coursework (Test)
70%: Examination (Unseen examination)

Contact hours and workload

This module is 150 hours of work. This breaks down into 35 hours of contact time and 115 hours of independent study.

This module is running in the academic year 2018/19. We also plan to offer it in future academic years. It may become unavailable due to staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of such changes to modules at the earliest opportunity.

Courses

This module is offered on the following courses: