BANK MANAGEMENT IN A GLOBAL CONTEXT

SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2N325569
Module Leader Chioma Nwafor
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • B (January start)

Pre-Requisite Knowledge

None

Summary of Content

The aim of this module is to assist students in gaining a clear and consolidated view of the main operations of banks and the products and services offered by them with particular emphasis on their risk management and operations strategies, including Bank Authorisation and Conduct of Business and Offshore banking practices. Students will critically assess how banks are authorized in the UK including a detailed evaluation of "Treating Customers Fairly (TCF) Requirements" as well as the effect of technology on banking (Fintech). The module will also aim to develop an awareness of global issues in bank management and operations. In addition, the module will focus on how banks assess potential clients' credit risk using the Credit Scoring Models and Linear Discriminant Model (Altman's Z-score), and Liquidity management amongst others. In this course, we will examine the operations of banks as well as their role in the economy. In addition to a number of contemporary issues in bank management, students will also be introduced to the role of banks in the implementation and transmission of monetary policy, as well as the role of capital in bank management.

Syllabus

1. Introduction to Banking. 2. Bank Authorisation and Conduct of Business in the UK. 3. Bank Capital Management Under the Basel Accords 4. Types of Risks Faced by Financial Institutions. 5. Introduction to Bank Operational Risk Measurement and Management 6. Introduction to Credit Risk Individual Loans. 7. Introduction to Credit Risk Models (Credit Scoring Models, Linear Discriminant Models). 8. Managing Liquidity Risk on The Balance Sheet. 9. Off-shore Banking and International Financial Centres 10. Banks and the Financial Technology Start-ups Challenge 11. Understanding Interest Rates and Managing Interest Rate Risk. 12. Contemporary Issues in Bank Management/Revisions.

Learning Outcomes

On successful completion of this module, students should be able to:1. Explain the special role of banks in the financial system and the rationale for regulating banks;2. Explain bank authorisation process, and the role of banks in the implementation and transmission of monetary policy;3. Understand the importance of Ethics in Banking including the concept of "Treating Customers Fairly".4. Be able to discuss and understand the different types of risks that banks face in the intermediation process including credit, liquidity and interest rate risks;5. Be able to discuss the concept of risk and the risk management process in banking;6. Explain the use of the "Three Lines of Defence" Model in Operational Risk Management;7. Understand the concept of off-shore Financial Centres (OFCs) and their uses in International Finance;8. Be able to discuss Bank Capital Management under the Basel Accords and assess the role capital plays within banks;9. Be able to critically evaluate major threats that Financial Technology Start-up Firms pose to conventional financial services companies and how banks are repositioning themselves to be net-winners from the digital disruptions.10. Be able to discuss banking in a global context with a critical appreciation of the regional and national differences.

Teaching / Learning Strategy

The learning and teaching strategy uses a blended approach of lectures, tutorials, and directed learning supported by GCU Learn. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students are expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and where necessary, attempt computational questions. Every student will receive a module handbook. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussions to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to the lectures, providing the basis for deepening professional skills, knowledge and understanding. All students will be directed to further reading to support the theoretical and practical content of the module. This course is supported by the GCU Learn website. Documents on the GCU Learn will normally be in Power Points, if you require course materials in an alternative format due to a visual disability, you should please contact the module leader. Students can download the module handbook from the GCU Learn. The Module Handbook can be found in 'Module Overview' and the lecture materials can be found under 'Learning Resources' sections of GCU Learn. This module requires advance preparations; students are expected to preview the lecture notes on GCU Learn before lectures. Feedback strategy - aims Students will be provided with feedback within three weeks of submission. The feedback that they receive is designed to: A: Facilitate the development of self-assessment; B: Encourage dialogue; C: Clarify good performance; D: Provide opportunities to close the gap between current and desired performance; E: Deliver high quality information about individual learning; F: Encourage positive motivational beliefs and self-esteem; G:Provide information to teachers that can be used to help shape the teaching. In order to achieve these aims, the following strategies will be adopted by this module: Facilitating the development of self-assessment: The assessment requirements will be discussed in the introduction to the module. Students will be asked to reflect on the standard of their work. Encouraging dialogue: Students are encouraged to discuss their comments with lecturers, arrange meetings with academic advisors to review performance. Clarifying good performance: Students will be provided with information about marking criteria. They will also be provided with examples of assessments to review in order to identify and clarify good performance (as per A). Providing opportunities to close the gap between current and desired performance: Students may find it helpful to identify actions points based on the feedback they have received. Delivering high quality information about individual learning: Feedback will be provided within 3 weeks of submission, covering strengths, weaknesses and corrective advice. Encouraging positive motivational beliefs and self-esteem: Feedback will be designed to encourage and be constructive. Providing information to teachers that can be used to help shape the teaching: Students, if they wish, may identify where they are having difficulties when they hand in their assignments.

Indicative Reading

Rose P and Hudgins S. (2013) Bank Management & Financial Services , McGraw-Hill International Edition. Saunders A and Cornett M (2015) Financial Institutions Management : A Risk Management Approach, 7th Edition, McGraw-Hill International Edition. Pilbeam K. (2010) Finance and Financial Markets, 3rd Edition, Palgrave Macmillan. The Financial Times The Wall Street Journal The Daily Telegraph The Times The Banker Financial World Euromoney The Economist Forbes Fortune Business Week Journals: Journal of Banking and Finance International Journal of Bank Marketing The Journal of Financial Services Research The Journal of Financial Intermediation The Service Industries Journal

Transferrable Skills

After completion of the course students will have developed the following transferable skills: Personal and interpersonal skills Oral and written communication skills Data gathering, analysis and interpretation Problem Solving and Critical Thinking Ability to Work Independently Ability to work in a team Research Skills in order to complete the seminar questions

Module Structure

Activity Total Hours
Seminars (FT) 11.00
Assessment (FT) 40.00
Independent Learning (FT) 125.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 70.00 35% Unseen written exam
Course Work 01 n/a 30.00 35% Class Test