Accounting and Finance
Principles of Banking
Module code: N1577
15 credits in spring semester
Teaching method: Lecture, Seminar
Assessment modes: Coursework, Computer based exam
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 analyzes 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. Moreover, 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:
- Banking Activities and the type of banking
- Theory of central bank and monetary policy
- Banks' balance sheet and income structure
- Managing Banks
- Banking Industry: Structure and Competition
- Banking risk management
- The banking crisis in 2008
- Bank regulation and supervision
Module learning outcomes
- Understand the operations and nature of the modern banking sector.
- Analyse and interpret basic banks financial statements and key performance ratios
- Evaluate the risks in banking using elementary risk management techniques
- Discuss why banks need regulation and distinguish between the different types of regulation