Overview

External and internal drivers that shape bank financial management; Financial and performance analysis; Asset and liability management; Lending and securitisation; Risk and capital adequacy; Capital allocation and VAR (Value-At-Risk) modelling; Current issues in bank financial management.

Assessment Strategy

-threshold -50% / -C Display a basic appreciation of the internal and external drivers of bank financial management (BFM); understand the basic concepts, theories and practical techniques of BFM; demonstrate the main risk and return trade-offs inherent in BFM and appreciate their impact on bank value.

-good -60% / -B Display a good understanding of the internal and external drivers of BFM and be able to set up and discuss authoritatively several different scenarios; have a solid grasp of the practical techniques of BFM and be able to reason independently of rote/textbook learning; demonstrate a sound understanding of the different bank valuation models and their practical context.

-excellent -70 (-A) Demonstrate a rigorous and questioning appreciation of the external and internal drivers of BFM; have a rigorous and insightful appreciation of practical mainstream corporate finance and broader bank strategy; be able to evaluate critically the different bank valuation models, the trade-offs between them and how market forces and finance research are shaping the convergence of different models.

Learning Outcomes

• Apply the skills and practical competences needed for high-level financial management in banking.

• Appreciate the nature, strategic context and managerial functions of practical financial management in banks and similar financial service firms.

• Develop a suitable analytical framework from the bank financial management corpus to be capable of addressing new and contemporary issues.

• Understand contemporary problems and issues that bear on bank financial management.

• Understand how bank financial management contributes towards meeting a bank's strategic and related objectives.