Course Information Undergraduate prospectus

Banking and Finance in a Global Context

Course summary

Course code: FINA1114
Level: 5
Credits: 30
School: Business Faculty
Department: International Bus and Economics
Course Coordinator(s): Maria Nikolaidi

Specification

Introduction and rationale

The course is introduced to enhance a pluralist approach to banking and finance taking into account
various schools of thought, global perspectives on financial systems, historical aspects of money and
banking, modern policy issues as well as after‐crisis developments. The course will develop the
technical skills of students (e.g. data handling using software programmes) and will enhance their
understanding of modern financial institutions. By doing so it will improve their critical thinking and
employability. The course is a combination of the 15 credit Banking and Finance in a Global Context
1 and the 15 credit Banking and Finance in a Global Context 2.

Aims

This course intends to:
 Overview of the main milestones in the history of banking
 Provide a good understanding of the micro issues surrounding the modern banking firm within
the after‐crisis globalised economy
 Analyse critically the macroeconomic aspects of the function of financial institutions
 Develop the ability of students to analyse real data of the banking sector
 Help students understand different banking structures, financial innovations and the practices of
financial investors within the globalised economy
 Understand the growth and dynamics of the banking systems of emerging markets especially in
various parts of Asia (South‐East, South, and West Asia), and Latin America.
 Provide an integrated understanding of the core policy issues related with financial stability

Learning outcomes

This course intends to:
 Overview of the main milestones in the history of banking
 Provide a good understanding of the micro issues surrounding the modern banking firm within
the after‐crisis globalised economy
 Analyse critically the macroeconomic aspects of the function of financial institutions
 Develop the ability of students to analyse real data of the banking sector
 Help students understand different banking structures, financial innovations and the practices of
financial investors within the globalised economy
 Understand the growth and dynamics of the banking systems of emerging markets especially in
various parts of Asia (South‐East, South, and West Asia), and Latin America.
 Provide an integrated understanding of the core policy issues related with financial stability

Indicative content

History of banking
 Traditional theory of banking
 Banks and financial intermediation
 Diversification of banking activity
 Theory of international banking
 Costs and benefits of international banking
 Islamic banking, banking structure in the UK, US, EU, Japan LDCs, China and India
 S‐C‐P model applied to banking
 Contestable market theory and banks
 Financial innovation: (Asset‐backed securities, derivatives and other financial products)
 Credit risk (moral hazard, adverse selection, asymmetric information and credit rationing),
interest rate risk and liquidity risk
 Bank performance indicators (ROE, ROA, net interest margin, leverage, capital adequacy ratio)
 Capital Asset Pricing Model (CAPM)
 Rational expectations and efficient market hypothesis
 Keynes' liquidity preference theory
 Financial accelerator
 Minsky's Financial Instability Hypothesis
 Basel I, II and III; financial stability implications
 Financial markets and monetary policy

Teaching and learning activity

Lectures which will present an overview of the material to be covered and the learning outcomes
to be achieved.
 Tutorials in which students' work centres on:
i. completing tasks which will include presentations to seminar groups and undertaking
exercises and case studies;
ii. numerical exercises in computer labs using banking data;
iii. in class quizzes and multiple choice exercises.
The tutorials will reinforce students' understanding and give formative assessment of progress.

Assessment

Essay - 25%
Outcome - 1,2,3
2000 Words
An analytical essay dealing with a critical assessment of a theory.

Quantitative Analysis - 25%
Outcome - 4,5,6,7
2000 Words
A quantitative
analysis (e.g. a Business Report that examines the pros and cons of an investment, risk management, commercial decision; a report that calculates and analyses regulatory indices).

Exam - 50%
Outcome - 1-7
3500 Words
Combinations of essay and numerical questions.

Pass mark 40%