Module ASB-1202:
Financial Mrkts & Institutions

Module Facts

Run by Bangor Business School

10 Credits or 5 ECTS Credits

Semester 1

Organiser: Mrs Nia Weatherley

Overall aims and purpose

This module will provide students with the basic economic principles to understand the structure of financial markets and the management of financial firms. Building on the notion of information asymmetries, the module will explore how financial markets and financial firms like banks affect the economy at large. It will examine the role of interest rates and the operations of bond markets and stock markets. The module will critique the financial structure and financial regulation of markets and firms, and will provide the tools for students to understand the workings and management of financial firms, and how financial innovation helps to reshape the competitiveness of financial firms and markets.

Course content

  1. Overview and Introduction to Financial Markets and Institutions
  2. Interest rates and bond markets I
  3. Interest rates and bond markets II
  4. Stock markets
  5. Financial structure
  6. Management of financial institutions
  7. Industry structure in banking
  8. Regulation
  9. Financial crises

Assessment Criteria

threshold

A basic understanding of core issues.

good

In addition to the above, an ability to analyse and interpret facts and theories developed in the module.

excellent

In addition to the above, the ability to illustrate arguments with reference to suitable examples drawn from the established literature.

Learning outcomes

  1. Critique the importance of information in explaining how the financial system works.

  2. Recognise how financial structure affects how the financial system operates.

  3. Understand how financial firms like banks are managed and why they are regulated.

  4. Assess how markets price financial products such as bonds and stocks.

Assessment Methods

Type Name Description Weight
Assignment 40
Examination S1 2hrs 60

Teaching and Learning Strategy

Hours
Lecture

One 2-hour lecture per week.

20
Private study 80

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
  • Exploring - Able to investigate, research and consider alternatives
  • Information retrieval - Able to access different and multiple sources of information
  • Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
  • Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
  • Presentation - Able to clearly present information and explanations to an audience. Through the written or oral mode of communication accurately and concisely.

Subject specific skills

  • An understanding of financial service activity in the economy, and an appreciation of how finance theory and evidence can be employed to interpret these services (for example, information asymmetry, adverse selection and moral hazard could be employed to analyse the fundamental nature of services, such as insurance, pensions, bank lending and consumer credit, and also explore fundamental problems arising in such financial service provision. Efficient market hypothesis could be used to explore evidence for fund manager performance and the effectiveness of equity and bond saving services).

Resources

Talis Reading list

http://readinglists.bangor.ac.uk/modules/asb-1202.html

Reading list

Mishkin, F.S., 2016. The Economics of Money, Banking, and Financial Markets. Eleventh Edition, Global Edition. Pearson.

Courses including this module

Compulsory in courses:

Optional in courses: