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 and structural 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.
Introduction to the banking firm Business models and forces of change The regulation of banks Bank capital regulatory requirements Analysing bank performance Business and consumer lending Diversification and managing non-interest income and non-interest expense Governance and compensation in banking 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.
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.
D- to D+ Demonstration of the required knowledge and techniques but with significant mistakes and little development of the subject beyond lecture material.
Evaluate the market forces and regulatory requirements changing the industry and understand the effects of market structures and competition in banking.
Demonstrate an appreciation of bank performance and evaluate the contribution of interest and non-interest activities to profit.
Evaluate the processes and techniques used in credit risk and liquidity management methods used by banking firms.
Demonstrate awareness of the asset liabilities management (ALM) process.
Review and appraise the main theories and practices underlying modern bank capital management.
Review and appraise the main theories and practices underlying modern banking firms’ business.
|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.
- 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
Subject specific skills
Knowledge and understanding in the following areas:
Structural characteristics of the banking sector, including universal versus specialist banking, international banking and the integration of national banking markets, comparative banking markets, consolidation in the banking sector, technological change in banking, and the relationships between banking and other financial services.
Balance sheet and income statement structure for banks, measuring financial performance, asset and liability management, liquidity management, capital adequacy management, risk management for banking, including credit risk, interest rate and exchange rate risk, operational risk, capital risk and insolvency.
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:
- 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)
- L190: BSc Business Economics year 3 (BSC/BEC)
- L19B: BSc Business Economics (4 year with Incorporated Foundation) year 3 (BSC/BEC1)
- L191: BSc Business Economics with International Experience year 3 (BSC/BECIE)
- L192: BSc Business Economics (Bangor International College) year 3 (BSC/BICBE)
- 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)