Module Information

Module Identifier
ECM4520
Module Title
International Financial Regulation
Academic Year
2016/2017
Co-ordinator
Semester
Semester 1
External Examiners
  • Dr Georgios Katechos (Senior Lecturer - University of Hertfordshire)
 
Other Staff

Course Delivery

Delivery Type Delivery length / details
Seminar 5 x 1 Hour Seminars
Lecture 11 x 2 Hour Lectures
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Assessment Individual Coursework: 3000 words report  30%
Semester Exam 3 Hours   Written Examination  70%
Supplementary Assessment 3000 words report Repeat failed elements or equivalent  30%
Supplementary Exam 3 Hours   Repeat Failed Elements: Written Examination  70%

Learning Outcomes

On successful completion of this module students should be able to:

Identify and critically analyze the rationale for intervention in financial markets, both at a national and international level.

Evaluate the financial and regulatory structure in the UK and its relationship to other institutions.

Demonstrate an understanding of the transnational financial institutions in achieving policy objectives.

Critically analyze how financial architecture is drawn from the rationale for regulation.

Appreciate the need for regulation in the banking sector and assess the regulatory responses in light of the recent credit crisis.

Apply the above learning outcomes to the policy challenges of a national or transnational institution.

Aims

The aim of this module is to provide a good grasp of both the basics (the structure and environment of banking) and selected aspects of the applied economics to banking. The topics covered include competition, bank efficiency, regulation, internatioal banking and bank failures and crises. The recent banking crisis has motivated heightened discussion of the merits of bank regulations used to minimize the risk of bank distress and intervention tools to mitigate its effects and this module will highlight technical aspects of bank regulation, supervision and intervention to resolve crises. This finance and international related module will provide economic underpinnings to the proposed MSc program.

Brief description

The module will familiarize students with theoretical and practical approaches to the regulation of financial services in an international context and enable them to critically evaluate these, in particular the UK regime. The structure and nature of financial regulation, particularly in the UK among other countries, will be used to illustrate how the principles discussed translate into practice. The motivation for intervention when a financial institution or market faces a crisis will also guide our understanding of the structure, activities, role and formation of international financial institutions such as the World Bank, International Monetary Fund and other international regulatory organizations as well as the Basel frameworks.

Content

Introduction
Regulation in banking: the rationale and need for regulation
State Intervention: Taxonomy - moral hazard, asymmetric information and the grid lock problem
Institutional Structure in the UK: role of the FSA, instruments employed
Systemic Risk and Crises and the Recent Crisis: Bank runs: theoretical framework and recent research; Evolution of the recent financal crises and response of governments in the UK, US and other EU Member States
Interanational responses: Regulatory response of institutions and governments
International Institutions and Bretton Woods
Evolving international financial policy coordination: evolving financial policy coordination at the international level: G7, G20; Basle frameworks
Political economy of international financial policy coordination

Module Skills

Skills Type Skills details
Application of Number Although the module does not directly involve estimating econometric models, it requires students to understand and interpret results of studies on financial crisis.
Communication Discussion-based seminars facilitate critical thinking and help to develop good presentation skills. Independent work on assessed essay helps to develop writing skills which will be of use when writing the assessments.
Improving own Learning and Performance Students will improve their learning by undertaking directed but independent study and work. Time management will be crucial in preparation for the assessments.
Information Technology The use of electronic journals is highly relevant for the successful preparation of the essay. In addition, although not required, students may choose to use electronic library databases.
Personal Development and Career planning The module provides content which may prove highly valuable for students in their later careers. Knowledge and understanding of contemporary issues in financial regulation as well as research skills developed in connection with the preparation of assessed individual coursework contribute to transferable skills.
Problem solving The module demands the participants to apply analytical skills to reason and understand the challenging nature of the subject. By introducing a variety of theoretical as well as empirical topics, the module enables students to develop creative thinking approaches to problem solving and to critically evaluate potential solutions to complex and challenging problems. These skills will have to be applied in tutorial discussions, preparation of the written assessment and in the exam.
Research skills Students will be mostly working with influential theoretical as well as empirical research papers published in top economics journals. This will introduce them to a range of research methods, which will facilitate development of appropriate research skills necessary to produce high quality analytical reports. The students will have to prepare an individual report based on information that they will have to collect, having to arrange coherently in a written document all the relevant material gathered.
Subject Specific Skills Analytical skills will be applied to financial policy making and regulation.
Team work Team work ethics are encouraged in seminars. During seminars students will be encouraged to participate in group discussions/presentations.

Notes

This module is at CQFW Level 7