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IB9Y1 - Banks and Financial Institutions

  • Module code: IB9Y1
  • Module name: Banks and Financial Institutions
  • Department: Warwick Business School
  • Credit: 15

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

"General aim: To consider the theory and practice of banking in the 21st Century. Specific aims: To highlight the facilitation role of banks as intermediaries between borrowers and lenders, and as providers of liquidity; To consider ways in which banks can diversify their activities e.g. international trade, wholesale banking, off-balance sheet banking, securitisation; To describe the international payments system, the inter-bank market and the Eurocurrency markets; To compare and contrast the banking systems, including regulatory regimes, in the UK, US, Europe and Japan; To review the key features of the Basel 1988 agreement regarding capital adequacy, and to critically assess the proposals in the Basel II agreement; To examine the possible causes of bank failure e.g. Bankhaus Herstatt, BCCI, Barings Bank."

Principal learning outcomes

Subject knowledge/Key Skills: Explain the key function of banks as intermediaries between lenders and borrowers, and as providers of liquidity; Assess the competitive forces in banking, and describe how banks can diversify their activities; Describe the different forms of risk to which banks are exposed, and the strategies for mitigating such risks. Cognitive Skills: Compare and contrast the banking systems in the UK, Europe, US and Japan; Describe the operation of the inter-bank and euro-currency markets, and explain the roles that these markets perform; Compare and contrast the role of the Central Bank in supervising the activities of banks; Discuss the key recommendations of the Basel 1988 and Basel II capital adequacy agreements; Discuss individual cases of bank failure. Subject specific/Professional Skills; Implement asset-liability management techniques such as duration-gap analysis.

Timetabled teaching activities

Total contact hours: 30 hrs. Lectures (over duration of course): 10 x 2 hour lectures. Seminars (over duration of course): 10 x 1 hour seminars. Module duration (weeks, if applicable): 10 week.

Departmental link

https://my.wbs.ac.uk

Module assessment

Assessment group Assessment name Percentage
15 CATS (Module code: IB9Y1-15)
D (Assessed/examined work) Assessed Course Work 20%
Examination - April 80%

Module availability

This module is available on the following courses:

Core

N/A

Optional Core

N/A

Optional
  • MSc in Finance (N300) - Year 2
  • Postgraduate Taught Finance with Behavioural Science (N301) - Year 2