Banks and Financial Markets
Run by Bangor Business School - (Changsha)
20.000 Credits or 10.000 ECTS Credits
Organiser: Ms Wendy Ashurst
Overall aims and purpose
This module will provide students with economic principles to understand the structure of financial markets and the role and activities of banks and financial firms in general. 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, stock markets and foreign exchange markets. The module will critique the financial structure and examine the role of central banks and the operation of monetary policy. It will evaluate monetary targeting regimes such as inflation targeting and discuss factors affecting the international financial system. The module will discuss the special nature of banks and the rationale for regulating banks, before revealing the principles of bank management. In so doing, the module will to provide deeper focus and analysis on banks and factors affecting the banking system.
An indicative list of topics may include but not be limited to: Money; Interest Rates; Bonds; Stocks; Exchange Rates; Financial Structure; Banks; Central Banks; Monetary Policy.
D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.
C- to C+
C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
A- to A+ (70%+): The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.
B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.
Assess the principles of bank management.
Evaluate monetary targeting regimes and factors influencing the international financial system.
Discuss the importance of information in explaining how the financial system works.
Explain how markets price financial products, such as, bonds, stocks and the exchange rate.
Understand the rationale for bank regulation.
Assess how financial structure affects how the financial system operates.
Comprehend the special role of banks in the economy.
Carry out financial analysis of bank performance.
Determine the role of central banks in monetary policy management.
|Multiple Choice Test||30.00|
Teaching and Learning Strategy
To read in support of the lectures and to reflect upon knowledge acquired.
Weekly lecture series.
- 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
- 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.
- 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
Talis Reading listhttp://readinglists.bangor.ac.uk/modules/asb-2770.html
CORE TEXTS Mishkin, F.S., 2016. The Economics of Money, Banking, and Financial Markets. Eleventh Edition, Global Edition. Pearson. Casu, B., Girardone, C., Molyneux, P., 2015. Introduction to Banking. Second Edition. Pearson.
Introduction to Banks and Financial Markets
Mishkin, Chapter 1.
Overview of the Financial System and Money Mishkin, Chapters 2, 3; Casu, Girardone & Molyneux, Chapters 1, 2. Week 2 Interest Rates and Bond Markets Mishkin, Chapters 4, 5; Casu, Girardone & Molyneux, Appendix A1. Risk and Term Structure of Interest rates Mishkin, Chapter 6; Casu, Girardone & Molyneux, Appendix A1. Week 3 The Foreign Exchange Market Mishkin, Chapter 18. Stock Markets Mishkin, Chapter 7. Week 4 Why Banks Are Special Casu, Girardone & Molyneux, Chapter 1; Mishkin, Chapter 2. Financial Structure Mishkin, Chapter 8. Week 5 The Rationale for Bank Regulation Casu, Girardone & Molyneux, Chapter 7; Mishkin, Chapter 10. Bank Financial Statement Analysis I Casu, Girardone & Molyneux, Chapters 2, 3, 9; Mishkin, Chapter 2. Week 6 Banks’ Liquidity Management and Asset-Liability Management Casu, Girardone & Molyneux, Chapters 10, 11, 12; Mishkin, Chapter 9. Bank Financial Statement Analysis II Casu, Girardone & Molyneux, Chapters 2, 3, 9; Mishkin, Chapter 2. Week 7 Banks’ Capital Management and Capital Adequacy Casu, Girardone & Molyneux, Chapters 7, 10; Mishkin, Chapter 9. Money Creation and the Deposit Multiplier Mishkin, Chapter 15. Week 8 Central Banks and Monetary Policy Mishkin, Chapter 16; Casu, Girardone & Molyneux, Chapter 5. Inflation Targeting Mishkin, Chapter 17. Week 9 The International Financial System Mishkin, Chapter 19. Monetary Transmission Mechanism Mishkin, Chapter 26.
Courses including this module
Compulsory in courses:
- N392: BSc Banking & Finance (Bangor College, China) year 2 (BSC/BFINBC)