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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

• to 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. • to develop specialist financial skills for you if 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:

  • 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.

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

Richard Dale. Risk and Regulation in Global Securities Markets. 

Bank of England Quarterly Bulletin. Journal

Federal Reserve Bulletin. Journal

Shelagh Heffernan (2005). Modern Banking. 

Financial Management. Journal

Journal of Financial Services Research. Journal

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

Richard Werner (2005). New Paradigm in Macroeconomics. 

Philip Molyneux. Banking: An Introductory Text. 

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

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

Ian Giddy. Global Financial Markets. 

Financial Times. Journal

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

Federal Reserve Bank of New York Quarterly Review. Journal

Financial Stability Review. Journal

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

Journal of Banking and Finance. Journal

Assessment

Formative

Questions and answers

Summative

MethodPercentage contribution
Examination 15%
Examination  (2 hours) 35%
Examination 15%
Examination  (2 hours) 35%

Repeat

MethodPercentage contribution
Examination  (2 hours) 50%
Examination  (2 hours) 50%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

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:

Textbooks

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 www.calendar.soton.ac.uk.

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