Financial Mrkts & Institutions
Run by Bangor Business School
10 Credits or 5 ECTS Credits
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.
- Overview and Introduction to Financial Markets and Institutions
- Interest rates and bond markets I
- Interest rates and bond markets II
- Stock markets
- Financial structure
- Management of financial institutions
- Industry structure in banking
- Financial crises
A basic understanding of core issues.
In addition to the above, an ability to analyse and interpret facts and theories developed in the module.
In addition to the above, the ability to illustrate arguments with reference to suitable examples drawn from the established literature.
Critique the importance of information in explaining how the financial system works.
Recognise how financial structure affects how the financial system operates.
Understand how financial firms like banks are managed and why they are regulated.
Assess how markets price financial products such as bonds and stocks.
Teaching and Learning Strategy
One 2-hour lecture per week.
- 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).
Mishkin, F.S., 2016. The Economics of Money, Banking, and Financial Markets. Eleventh Edition, Global Edition. Pearson.
Pre- and Co-requisite Modules
Courses including this module
Compulsory in courses:
- N400: BA Accounting and Finance year 1 (BA/AF)
- N401: BA Accounting & Finance (with International Experience) year 1 (BA/AFIE)
- N322: BA Banking and Finance year 1 (BA/BIF)
- NR33: BA Banking/Italian year 1 (BA/BIT)
- NN13: BA Business Studies and Finance year 1 (BA/BSF)
- NN14: BA Business Stud & Finance (with International Experience) year 1 (BA/BSFIE)
- NN15: BA Business Studies and Marketing year 1 (BA/BSM)
- NR34: BA Banking/Spanish year 1 (BA/BSP)
- N100: BA Business Studies year 1 (BA/BUSS)
- N102: BA Business Studies (with International Experience) year 1 (BA/BUSSIE)
- NR31: BA French/Banking year 1 (BA/FRB)
- NR32: BA German/Banking year 1 (BA/GB)
- N2N4: BA Management with Accounting year 1 (BA/MAF)
- N500: BA Marketing year 1 (BA/MK)
- NN44: BSc Accounting and Banking with International Experience year 1 (BSC/ABIE)
- NN43: BSc Accounting and Banking year 1 (BSC/ACCB)
- NL41: BSc Accounting and Economics year 1 (BSC/ACCEC)
- NN4H: BSc Accounting and Finance year (BSC/ACCFIN)
- N402: BSc Accounting & Finance (with International Experience) year 1 (BSC/ACCFINIE)
- NL42: BSc Accounting and Economics with International Experience year 1 (BSC/AEIE)
- L190: BSc Business Economics year 1 (BSC/BEC)
- N391: BSc Banking and Finance year 1 (BSC/BFIN)
- N101: BSc Business Studies year 1 (BSC/BS)
- NNM1: BSc Business Studies & Marketing with Intl Experience year 1 (BSC/BSMIE)
- NN1M: BSc Business Studies and Marketing year 1 (BSC/BSMKT)
- L111: BSc Financial Economics year 1 (BSC/FINEC)
- N2NK: BSc Management with Accounting year 1 (BSC/MWACC)
Optional in courses:
- NR43: BA Accounting/Italian year 1 (BA/AIT)
- NR44: BA Accounting/Spanish year 1 (BA/ASP)
- L1T1: BA Economics and Chinese year 1 (BA/ECCH)
- LR13: BA Economics/Italian year 1 (BA/ECIT)
- LL13: BA Sociology/Economics year 1 (BA/ECS)
- LR14: BA Economics/Spanish year 1 (BA/ECSP)
- NR41: BA French/Accounting year 1 (BA/FRA)
- LR11: BA French/Economics year 1 (BA/FREC)
- NR42: BA German/Accounting year 1 (BA/GA)
- LR12: BA German/Economics year 1 (BA/GEC)
- LV11: BA History/Economics year 1 (BA/HEC)
- LL14: BA Social Policy/Economics year 1 (BA/SPEC)