Gwybodaeth Modiwlau

Module Identifier
ABM1520
Module Title
Banking and Financial Intermediation
Academic Year
2020/2021
Co-ordinator
Semester
Semester 2
Other Staff

Course Delivery

 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   70%
Semester Assessment Written Essay  (3,000 words).  30%
Supplementary Exam 3 Hours   Students must take elements of assessment equivalent to those that led to failure of the module.  70%
Supplementary Assessment Students must take elements of assessment equivalent to those that led to failure of the module.  30%

Learning Outcomes

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

1. Demonstrate a critical awareness of the economic role of financial intermediation.

2. Explain the various types of risk exposure facing financial intermediaries, and critically evaluate the tools available to financial intermediaries to manage risk.

3. Explain theories and empirical evidence on the determination of currency exchange rates, and the functioning of foreign exchange markets.

4. Explain the factors that contribute to banking and financial crises, and demonstrate knowledge of the key features of recent banking and financial crises globally.

5. Critically evaluate the effectiveness of micro-prudential and macro-prudential regulation of financial institutions in enhancing international financial stability.

Brief description

The module provides an analysis of the economic function of banks and other financial intermediaries, with particular emphasis on the fundamental instability of banks. A theme that runs throughout the module is the impact of asymmetric information on the functioning of financial services markets. The foreign exchange market and theories of exchange rate determination are examined. The module examines the causes of major recent international financial crises, and investigates the global regulatory response.

Content

• Bank-based and market-based financial systems
• Financial Intermediation: size, maturity and risk transformation
• Liquidity insurance, monitoring and information sharing
• Credit rationing and overlending
• The foreign exchange market and forex instruments, spot and forward currency markets
• Theories of exchange rate determination
• Risk management in financial intermediation
• Banking and financial crises: bank runs, moral hazard, bubbles, systemic risk and contagion
• Micro-prudential and macro-prudential regulation of financial institutions.

Module Skills

Skills Type Skills details
Application of Number Use of and manipulation of quantitative data.
Communication Written via essays. Verbal via participation in seminars.
Improving own Learning and Performance Private study and time keeping.
Information Technology Use of internet and social media etc.
Personal Development and Career planning
Problem solving Identify the nature of the problem, and select an appropriate solution.
Research skills Use of internet and web material as well as general use of the library.
Subject Specific Skills By following and participating fully in the module via attendance at lectures and seminars and reading the material set in the syllabus as well as reading around the subject matter.
Team work Seminar collaboration and participation.

Notes

This module is at CQFW Level 7