Run by Bangor Business School
20 Credits or 10 ECTS Credits
Semester 1 & 2
Organiser: Prof Jon Williams
Overall aims and purpose
This double module examines the main theoretical and practical issues concerning banking business. In particular, the modules covers the theory of the banking firm by considering all aspects of the bank’s balance sheet in addition to regulation, structural and environmental issues that affect the bank’s strategic decision-making and risk behaviour. After completing the module, students should be familiar with how to measure, manage and maximise the bank’s value and have developed understanding of management strategies.
The content may include but will not be limited to the following topics. Introduction to the banking firm Business models and forces of change The regulation of banks and bank capital regulatory requirements Analysing bank performance Business and consumer lending Diversification and managing non-interest income and non-interest expense Managing value at risk Asset Liabilities Management (ALM) Essentials of credit risk analysis Credit risk management Liquidity management Capital theory Capital management Managing the investment portfolio
C- to C+
C- to C+ Demonstration of the required knowledge and techniques but with mistakes and little development of the subject beyond lecture material.
B- to B+ Clear understanding of the subject, together with evidence of investigation and understanding of the research literature, but with some theoretical or practical minor errors.
D- to D+ Demonstration of the required knowledge and techniques but with significant mistakes and little development of the subject beyond lecture material.
A- to A+ Excellent grasp of the concepts and techniques together with significant evidence of engagement and understanding of the research papers in this area.
Evaluate the market forces, competitive conditions and regulatory requirements that are shaping bank business models as well as the banking and wider financial industry.
Analyse bank performance and evaluate the contribution of interest and non-interest activities to profit.
Evaluate the asset-liability management (ALM) process in modern banking firms.
Discuss the main theories and practices underlying modern bank capital management.
Appraise the main theoretical and practical issues concerning banking business.
Develop a critical understanding of the forces that are shaping management strategies in banks.
Understand how to measure, manage and maximise the bank’s value.
Evaluate the processes and techniques in credit risk and liquidity management methods that banking firms use.
|Examination (semester 1) 2hrs||30|
|Examination (semester 2) 2hrs||30|
|S1 Group Assignment||20|
Teaching and Learning Strategy
|Practical classes and workshops||
Practical classes and workshops delivered through Blackboard.
One 2-hour lecture per week.
To review lectures, read supporting materials, and reflect upon each topic.
- Literacy - Proficiency in reading and writing through a variety of media
- Numeracy - Proficiency in using numbers at appropriate levels of accuracy
- Computer Literacy - Proficiency in using a varied range of computer software
- 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.
- Teamwork - Able to constructively cooperate with others on a common task, and/or be part of a day-to-day working team
- Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting
- Self-awareness & Reflectivity - Having an awareness of your own strengths, weaknesses, aims and objectives. Able to regularly review, evaluate and reflect upon the performance of yourself and others
Resource implications for students
Students may want to purchase supporting text book.
Bank Management, 8th ed. by Timothy W. Koch and S. Scott MacDonald. Published by Cengage Learning.
Introduction to Banking, 2nd ed. by Barbara Casu, Claudia Girardone and Philip Molyneux (2015). Published by Pearson.
Courses including this module
Compulsory in courses:
- NR33: BA Banking/Italian year 4 (BA/BIT)
- NR34: BA Banking/Spanish year 4 (BA/BSP)
- NR31: BA French/Banking year 4 (BA/FRB)
- NR32: BA German/Banking year 4 (BA/GB)
- NN44: BSc Accounting and Banking with International Experience year 4 (BSC/ABIE)
- NN43: BSc Accounting and Banking year 3 (BSC/ACCB)
- NN46: BSc Accounting and Banking (4 year with Incorp Found) year 3 (BSC/ACCB1)
- 8V55: BSc Banking and Finance (with International Experience) year 3 (BSC/BFIE)
- N391: BSc Banking and Finance year 3 (BSC/BFIN)
- N39B: BSc Banking and Finance (4 year w Incorporated Foundation) year 3 (BSC/BFIN1)
- N324: BSc Banking and Finance (Bangor International College) year 3 (BSC/BICBF)
Optional in courses:
- NN13: BA Business Studies and Finance year 3 (BA/BSF)
- NN14: BA Business Stud & Finance (with International Experience) year 4 (BA/BSFIE)
- N106: BSc Business Stud & Finance (Bangor International College) year 3 (BSC/BICBSF)
- NN1H: BSc Business Studies and Finance year 3 (BSC/BSFIN)
- NN1J: BSc Business Studies and Finance (4 year with Incorp Found) year 3 (BSC/BSFIN1)