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| Module Availability |
| Spring semester |
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| Assessment Pattern |
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Components of Assessment
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Percentage Weighting
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Coursework
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25%
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Exam
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75%
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| Module Overview |
| The monetary system is a fundamental feature so of any developed (and many less developed) economies. For example, the setting of interests rates is important for factors ranging from inflation to the performance of propertry and exchange markets. It has international as well as national importantance. As a result, studying the institutions, policies and theory behind money and banking can provide valuable (and topical) insight into government policy and economic performance. |
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| Prerequisites/Co-requisites |
| None |
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| Module Aims |
The aim of the module is to analyse important aspects of the theory and practice of modern banking. The significance of commercial banks in the process of money creation is also considered.
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| Learning Outcomes |
By the end of the module students will:
- Demonstrate an understanding of central bank operations and the conduct of monetary policy;
- Appreciate the role of commercial banks in the financial system and develop an understanding of the economic environment in which banks operate;
- Have a sound grasp of how banks assess and manage market risks;
- Be able to identify the issues and challenges that lie ahead for banking institutions.
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| Module Content |
The following is an indication of the likely topics to be covered:
- Deposit creation and the money supply process
- Demand for money and monetary policy
- The term structure of interest rates
- The banking firm and the management of financial institutions
- Banking structures in the UK, Germany, Japan and the US
- International banking
- Assessment and management of risks
- Banking crises and the need for bank regulation
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| Methods of Teaching/Learning |
| Lecture (20) |
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| Selected Texts/Journals |
Bessis J. (2001) Risk Management in Banking. Wiley, 2nd edition.
Cecchetti, S. (2006) Money and Financial Markets, McGraw-Hill
Freixas X. and Rochet J.-C. (1998) Microeconomics of Banking. MIT Press
Heffernan S. (2005) Modern Banking in Theory and Practice. Wiley.
Howells P. and Bain K. (2005) The Economics of Money, Banking and Finance: A European Text. Prentice Hall, 3rd edition
Lewis, M. & Mizen, P. (2000) Monetary Economics, OUP |
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| Last Updated |
24 June 2008 |
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