The University of Southampton
Courses

MANG6019 International Banking

Module Overview

This module is the core unit of the MSc International Banking and Financial Studies. It is also the module that is most directly focusing on banking, as opposed to financial market or accounting and finance-related courses otherwise on offer. This is a double-unit. In Semester 1 students learn the ‘micro’ side of banking, including financial institutions, instruments and techniques, such as hedging, as well as bank regulation. In Semester 2 students learn how banking is connected to and influenced by the economy – the ‘macro’ side of banking.

Aims and Objectives

Module Aims

- Teach the functioning and role of banks, including the central bank, in the economy, and to give insights into recurring problems such as banking crisis, business and asset price cycles etc. - Develop specialist financial skills for students wishing to embark on a career in international banking, financial markets and economics, whether as professional or academic, and those interested in learning about the role and functions of banks, including their influence on the economy.

Learning Outcomes

Knowledge and Understanding

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

  • explore the function of international and national financial markets;
  • learn about the institutional structure and uses of financial markets;
  • gain understanding of the role of financial institutions, and banks in particular;
  • evaluate the risks and rewards associated with different financial instruments, and financial institutional settings;
  • learn about the role of banks and the central bank and how they influence the economy, including consumer prices and asset prices;
  • learn about banking supervision and regulation;
  • learn about financial and banking crises;
  • learn about the link between banks and economic development;
  • learn about little known but important aspects of central banking.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • develop analytical skills and scientific research methodology;
  • you will learn to evaluate data, and use it in order to act upon it;
  • you will develop skills in critically assessing and using official statements;
  • you will become aware of latent biases in official publications and versions of events;
  • You will be able to make up your own mind about events, by utilising an empirical research methodology.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • ability to understand key available financial instruments and workings of financial markets, including roles of speculators, investors, bankers and central bankers;
  • ability to assess role and impact of banks and the central bank, and the need for appropriate regulation and supervision;
  • you will learn to interpret critically official publications by banks, central banks and authorities and compare this to empirical reality;
  • you will gain an understanding of the logic and workings of financial institutions, markets and the economy.

Syllabus

• Instruments and Their Use: • Markets and Participants • Debt Markets and Interest Rates • FX Spot, Forward and Options • Arbitrage, Hedging, Swaps, Shorting • Leverage, Currency Swaps, Futures, CFDs • Risks in Banking • Credit Derivatives (CDO, CLO, CDS) Role and Impact of Banking: • Banking and the Economy as described by Standard Economic Theories • Problems and Puzzles of the Standard Approaches • Inductive Approach to Banking and the Economy • Banking Crises and Banking Sector Restructuring • Central Banking • International Banking and Economic Development

Learning and Teaching

Teaching and learning methods

The course takes place over two semesters. Teaching mainly takes the form of lectures, with recommended supplementary reading. There will be handouts for parts of the programme, but students are encouraged to take careful notes of the lectures. Depending on class size, there is the possibility (rarely implemented) of adding group presentations based on case studies. The course should offer ample stimuli for MSc dissertation topics

TypeHours
Independent Study270
Teaching30
Total study time300

Resources & Reading list

Frederick Mishkin and S. Eakins. Financial Markets and Institutions. 

Philip Molyneux. Banking: An Introductory Text. 

Federal Reserve Bank of New York Quarterly Review. Journal

Shelagh Heffernan (2005). Modern Banking. 

Journal of Banking and Finance. Journal

Kent Matthews and John Thompson (2005). The Economics of Banking. 

Ian Giddy. Global Financial Markets. 

Roger LeRoy Miller and David D. VanHoose (1993). Modern Money and Banking. 

Bank of England Quarterly Bulletin. Journal

Josh Ryan-Collins, Tony Greenham, Richard Werner and Andrew Jackson (2011). Where Does Money Come From?. 

David Eiteman, Arthur Stonehill and Michael Moffett. Multinational Business Finance. 

Richard Dale. Risk and Regulation in Global Securities Markets. 

Financial Times. Journal

Federal Reserve Bulletin. Journal

Financial Management. Journal

Financial Stability Review. Journal

Richard Werner (2005). New Paradigm in Macroeconomics. 

Journal of Financial Services Research. Journal

Assessment

Formative

Questions and answers

Summative

MethodPercentage contribution
Examination  (2 hours) 35%
Examination  (2 hours) 35%
Multiple choice Test 15%
Multiple choice Test 15%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%
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