This module aims to provide you with a thorough grounding in a number of key advanced topics of bank management and risk assessment, including associated reporting and regulation. You will establish a solid foundation in the key issues confronting bank mangers today, a familiarisation with the basic financial models that are used to formulate decisions, and an understanding of the strengths and weaknesses of data analysis. This module focuses on decision making and offers a unique approach to understanding commercial bank management. This module addresses the specific aspects of commercial credit analysis, managing credit risk and liquidity risk and demonstrates the application of the model or framework using sample data analysis. The students not only observes how certain factors influence credit, investment, funding, and pricing decisions, but also develops an appreciation of the trade-offs between return and risk.
Full module specification
|Module title:||Bank Management|
|Duration of module:||
Duration (weeks) - term 2: |
The aim of the module is to introduce you to the principles and mechanisms of commercial banking. You will establish a solid foundation in the key issues confronting bank mangers today, a familiarisation with the basic financial models that are used to formulate decisions and an understanding of the strengths and weaknesses of data analysis. The numerous applications help the students to recognise the trade-offs involved in making financial decisions and to develop the logical thought processes needed to reach reasonable conclusions. Students will examine the strengths and weaknesses of traditional balance sheet measures of bank risks and explain the relationship between the composition of bank funds and various bank risks. Students will appraise framework for analysing bank performance over time and relative to peer banks. Students will also evaluate strategies to identify problem banks and successful bank restructuring procedures and understand the different approaches taken to resolve a banking crisis. 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 crises.
ILO: Module-specific skills
- 1. Discriminate and critically appraise various banking models and channels for delivering banking services in a global context.
- 2. Critically appraise the operation of commercial banks and evaluate how the regulation of depository institutions impacts their safety and soundness.
- 3. Appraise framework for analysing bank performance over time and relative to peer banks.
- 4. Apply key financial ratios that can be used to evaluate profitability and the different types of risks faced by banks.
- 5. Distinguish between types of bank risk; credit, liquidity, interest rate, capital, operational, and reputational.
- 6. Explain the function of bank capital both from the view of bank regulators and bank managers.
- 7. Provide an application of commercial credit analysis and introduce the fundamental credit issues when analysing loan requests with ethical ethos.
- 8. Critically appraise global bank-based financial crises.
ILO: Discipline-specific skills
- 9. Develop strong theoretical arguments based on analytical and statistical reasoning.
- 10. Rigorously analyse problems in banking.
- 11. Critically appraise theory and practice in banking.
- 12. Application of quantitative and qualitative information to finance problems.
ILO: Personal and key skills
- 13. Apply the quantitative tools in making financial decisions.
- 14. Make appropriate use of learning resources.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled Learning & Teaching activities||22 hours (2 per week)||Lectures|
|Scheduled Learning & Teaching activities||10 hours (1 per week)||Tutorials|
|Scheduled Learning & Teaching activities||2 hours||Revision|
|Guided Independent Study||116 hours||Reading and research; web-based activities|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Q&A sessions using Turning Point to show awareness of the concepts and issues||Participation in lectures and tutorials||1-8||Feedback and comments in the classroom|
|Engagement with online discussion forum in relation to relevant areas||Online discussion contributions||1-8||Online discussion feedback from peers and lecturer|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Assignment||30||1,500 words||1-14||Written feedback|
|Examination||70||2 hours||1-12||Exam grade and generic feedback on ELE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Assignment||Assignment (30%) 1,500 words||1-14||July|
|Exam||Examination (70%) 2 hours||1-12||Aug/Sep|
- Overview of the Banking Industry and Regulation
- Evaluating Bank Performance
- Funding the Bank
- Managing Liquidity
- Effective Use of capital
- Overview of Credit Policy and Loan Characteristics
- Evaluating Commercial Loan Requests and Consumer Loans
- Managing Credit Risk
- General Risk Management and International Risk Assessment
- Bank Failures and Banking Crises
Indicative learning resources - Basic reading
A selection of book parts, including readings from:
- Koch, T.W. and Macdonald, S.S. (2015) Bank Management, Eight Edition, Cengage Learning
- Casu, B., Girardone, C, and Molyneux, P. (2015) Introduction to Banking, Pearson Education
Module has an active ELE page?
Last revision date