The University of Southampton
Courses

MANG3009 International Banking

Module Overview

International Banking is at the heart of the global financial system. This module strides to link theory and practice of banking in a real world setting. Considerable attention is given to the vast array of risks that banks face and this is achieved by learning about the management and measurement of these various risks. In addition, the module looks at financial/banking crises and the impact that these have on the wider economy especially over the past number of years since September 15th 2008 when Lehman Brothers Investment Bank collapsed in New York. Finally, this module covers how to measure bank performance and looks in detail at the case for international banking regulation.

Aims and Objectives

Module Aims

The purpose of this module is to give you grounding in the theory and practice of financial intermediation and of international banking. The module introduces you to the foundations of financial intermediation theory and provides a holistic overview about the markets which financial intermediaries operate in. The module exposes you to regulation and why banks are monitored and supervised by regulatory authorities. Finally, the module discusses the different types of risks faced by banks and how these risks can be measured and managed.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • key available financial instruments and workings of financial markets, including roles of speculators, investors and bankers; the role and impact of banks in the economy and markets;
  • the need for appropriate regulation and supervision, and the actual regulation and bank behaviour observed in key markets.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • evaluate the risks and rewards associated with different financial instruments, and financial institutional settings; understand key workings of financial markets and the economy in general;
  • interpret official announcements and engage in public debates in the media and professional publications concerning financial and macroeconomic issues.
Subject Specific Practical Skills

Having successfully completed this module you will be able to:

  • understand the risks and potential rewards of certain financial instruments; understand better the workings of financial institutions and banks.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • evaluate data, and use it in order to act upon it;
  • evaluate and interpret critically official publications by banks and authorities and compare this to empirical reality;
  • enhance your analytical and critical thinking capabilities.

Syllabus

Week 1 - Theories of Financial Intermediation. Week 2 - Banks’ balance sheet and income statement. Week 3 - Risks in Banking. Week 4 - Credit risk analysis. Week 5 - Balance Sheet Management: Liquidity risk & Interest rate risk. Week 6 - Analysing Bank Performance. Week 7 - Capital Requirements & Securitisation. Week 8 - Banking and Financial Regulation. Week 9 -The Theory of Central Banking. Week 10 - Banking Crises. Weeks 11 &12 - Review Sessions.

Learning and Teaching

Teaching and learning methods

Description Lectures, classes (with exercises)

TypeHours
Seminar10
Follow-up work11
Revision25
Preparation for scheduled sessions40
Lecture24
Wider reading or practice40
Total study time150

Resources & Reading list

Irwin. Heffernan, Shelagh (2005). Modern Banking. 

Saunders, Anthony and Marcia Millon Cornett (2006). Financial Institutions Management: A Risk Management Approach. 

Casu, Barbara, Claudia Girardone and Philip Molymeux (2015). Introduction to Banking. 

Mathews, Kent and John Thompson (2008). The Economics of Banking. 

Assessment

Formative

Coursework

Summative

MethodPercentage contribution
Examination  (2 hours) 70%
Multiple choice Test  (45 minutes) 30%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%

Linked modules

Pre-requisites

To study this module, you will need to have studied the following module(s):

CodeModule
ECON1001Foundations of Microeconomics
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