Module Information

Module Identifier
Module Title
Modern Banking: Theory and Practice
Academic Year
Semester 2

Course Delivery



Assessment Type Assessment length / details Proportion
Semester Assessment Individual Coursework Essay 2000 Words  20%
Semester Exam 3 Hours   Written Examination  80%
Supplementary Assessment Repeat failed elements or equivalent  20%
Supplementary Exam 3 Hours   Repeat failed elements or equivalent  80%

Learning Outcomes

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

Demonstrate an understanding of the theory and practice of modern banking in major industrialized countries.

Evaluate the role of banks in the economic process in terms of their functioning and operation.

Discuss key financial risks faced by banks and critically analyse different approaches to risk management.

Explain the expansion of banks into non-banking financial services, including derivatives products, and critically evaluate consequences of this expansion in the context of current global financial crisis.

Analyse the causes of bank failures and explain importance of micro and macro prudential regulation in their mitigation.

Brief description

The module discusses theory and practice of modern banking. It deals with a number of key issues in this area including why banks exist, what makes them distinct from other types of financial institutions, why and how banks have diversified their activities into non-banking financial activities and consequences of this diversification, risk management, differences in banking structures in key economies, global regulation of banks, and competitive issues in banking.


What are banks and what do they do?
Diversification of banking activities
Management of risks and banking
Global regulation of banks
Differences in banking structures in key economies: UK, USA, Japan and EU
Bank failures
Competitive issues in banking
Case studies

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 from various models.
Communication Discussion-based seminars facilitate critical thinking and help to develop good presentation skills.
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 databases and statistical packages in their essays.
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 modern banking, as well as research skills developed in connection with the preparation of assessed individual coursework contribute to transferable skills.
Problem solving 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.
Research skills Students will work 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. Independent work on assessed essay helps to develop writing skills which will be of use when writing reports of different nature for various audiences and purposes.
Subject Specific Skills By the end of the module, students should be able to understand complex and dynamic nature of contemporary banking and apply acquired knowledge analytical skills in new contexts.
Team work Although team work ethics are encouraged in seminar discussions, there is no specific requirement involving team work. During tutorial sessions and essay presentations students will be encouraged to voluntarily participate in group discussions.


This module is at CQFW Level 7