Banking and Financial Services

Module description

Summary:

Banks and financial services enable end-providers (lenders and savers) and end-users (borrowers and spenders) of financial claims to transact without the need for them to do so directly. This module sets out to examine the process of financial intermediation and the financial services through which intermediation takes place. Theoretical and applied concepts are used to provide an understanding of the functioning of banks and financial services and of their size and economic significance. There are no pre- or co-requisites but prior knowledge in introductory finance would be an advantage.

Additional Information:

Internationalisation

Students are presented with up-to-date examples from various international markets, so they acquire knowledge on banking and financial services that can be applied across a number of countries.

External Engagement

We have number of guest speakers in this module. Last year this included the South West Agent of Bank of England, the Head and Deputy Head of Corporate Banking at HSBC Bank Plc.

Employability

Students develop several transferable skills in this module, such as team-working, numeracy, research and discursive and problem-solving skills.

Sustainability

Students learn to embed green and sustainable finance principles and practice into their advice, analysis, actions and decision.

All of the resources for this module are available through the ELE (Exeter Learning Environment). 

Full module specification

Module aims

The aim of the module is to introduce you to the principles and mechanisms of commercial banking, general insurance, life insurance, pension funds and mutual funds. You will also understand the models of money supply, interest rates and flow of funds as the primary conduit through which monetary policy actions by the central bank take place. Green and sustainable finance principles and practice will sit alongside credit, risk, operations, technology and ethics as key aspects of banking and financial services. International examples will be covered, including up-to-date financial news in relevant financial publications. You will also critically appraise bank-based financial crises, with a particular focus on the recent financial crisis. 

ILO: Module-specific skills

• 1. critically appraise the operation of commercial banks and institutional investors within the international financial system;
• 2. apply adverse selection and moral hazard to banking and financial services in ethical dimensions of decision-making process;
• 3. appraise models explaining the determinants of credit, money supply and interest rates;
• 4. explain and critically appraise bank-based financial crises in developed countries and emerging markets;

ILO: Discipline-specific skills

• 5. critically appraise theory and practice in finance;
• 6. analyse quantitative and qualitative information related to finance problems;

ILO: Personal and key skills

• 7. apply green and sustainable finance principles and practice in decision-making;
• 8. demonstrate independent research and study skills and apply to contemporary real-world issues.

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Details of re-assessment (where required by referral or deferral)

Syllabus plan

• Financial structure, financial intermediation, banking and finance myths
• General insurance
• Life insurance
• Pension funds
• Mutual funds
• Money and credit
• Interest rates and the flow of funds
• Commercial banks
• Global financial crisis 

Indicative learning resources - Basic reading

Basic Reading:

Mishkin, F.S. (2022). Economics of Money, Banking and Financial Markets: Global Edition. 13th edition. Pearson Higher Education. (CORE)
Mishkin, F.S. and Eakins, S.G. (2018) Financial Markets and Institutions, Global Edition. 9th edition. Pearson Higher Education. (CORE)
Mishkin F.S., Matthews, K., and Giuliodori, M. (2013), The Economics of Money, Banking and Financial Markets: European edition, Pearson Higher Education. (ISBN-10: 0273731807 • ISBN-13: 9780273731801 (CORE)
Howells, P. and Bain, K. (2008) The Economics of Money, Banking & Finance, 4th edition, Financial Times Press. (CORE)

Web-based and electronic resources:

All lecture and tutorial materials are posted on the intranet.

ELE – College to provide hyperlink to appropriate pages

Other resources:

Supplementary reading materials are indicated in the references of each lecture.

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

All lecture and tutorial materials are posted on the intranet.

Indicative learning resources - Other resources

Supplementary reading materials are indicated in the references of each lecture.

Origin date

17/07/2014

Last revision date

25/01/2022