Bank Management

Module description

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
Module code:BEAM065
Module level:M
Academic year:2017/8
Module lecturers:
  • Dr Angela Christidis - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

11

Module aims

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 ActivitiesGuided independent studyPlacement / study abroad
341160

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching activities22 hours (2 per week)Lectures
Scheduled Learning & Teaching activities10 hours (1 per week)Tutorials
Scheduled Learning & Teaching activities2 hoursRevision
Guided Independent Study116 hoursReading and research; web-based activities

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Q&A sessions using Turning Point to show awareness of the concepts and issuesParticipation in lectures and tutorials1-8Feedback and comments in the classroom
Engagement with online discussion forum in relation to relevant areasOnline discussion contributions1-8Online discussion feedback from peers and lecturer

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
30700

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Assignment301,500 words1-14Written feedback
Examination702 hours1-12Exam grade and generic feedback on ELE

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
AssignmentAssignment (30%) 1,500 words1-14July
ExamExamination (70%) 2 hours1-12Aug/Sep

Syllabus plan

  • 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?

Yes

Origin date

16/02/2017

Last revision date

12/04/2017