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The University of Southampton

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

Learning Outcomes

Knowledge and Understanding

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

  • the function of international and national financial markets;
  • the institutional structure and uses of financial markets;
  • the role of financial institutions, and banks in particular;
  • the risks and rewards associated with different financial instruments, and financial institutional settings;
  • the role of banks and the central bank and how they influence the economy, including consumer prices and asset prices;
  • banking supervision and regulation;
  • financial and banking crises;
  • the link between banks and economic development;
  • important aspects of central banking.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

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

Having successfully completed this module you will be able to:

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


• 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.

Independent Study270
Total study time300

Resources & Reading list

Journal of Financial Services Research. Journal

Richard Dale. Risk and Regulation in Global Securities Markets. 

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

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

Shelagh Heffernan (2005). Modern Banking. 

Philip Molyneux. Banking: An Introductory Text. 

Richard Werner (2005). New Paradigm in Macroeconomics. 

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

Financial Times. Journal

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

Federal Reserve Bulletin. Journal

Financial Management. Journal

Bank of England Quarterly Bulletin. Journal

Financial Stability Review. Journal

Ian Giddy. Global Financial Markets. 

Federal Reserve Bank of New York Quarterly Review. Journal

Journal of Banking and Finance. Journal

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



Questions and answers


MethodPercentage contribution
Individual Coursework 100%


MethodPercentage contribution
Individual Coursework 100%


MethodPercentage contribution
Individual Coursework  (2 hours) 100%

Repeat Information

Repeat type: Internal & External


Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:


Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the mandatory/additional reading text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at

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