INTERNATIONAL FINANCIAL SERVICES & INSTITUTIONS

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN311689
Module Leader Muhammad Nawaz
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)

Pre-Requisite Knowledge

Corporate Finance and Investment or equivalent.

Summary of Content

The module aims to develop a critical awareness in students of various aspects of international financial services and supporting institutions. It covers topics such as M&A, Foreign Exchange, Alternative Financial Services and Offshore Financial Services. On an institutional level, the workings of BIS, IOSCO, IAIS, IASB, WTO and GATS, with particular relevance to their role in international financial services will be studied.

Syllabus

Financial system design; foreign exchange market;comparing OECD financial systems (Japan, US); M & A in global financial services; offshore financial services; securitisation & deregulation in financial services; issues surrounding alternative financial systems - Islamic banking, alternative money transfer networks; future trends and emerging financial services markets. Roles and responsibilities of international institutions - BIS, IOSCO, IAIS, IASB, WTO and GATS.

Learning Outcomes

On successful completion of this module, the student should be able to:1. Present a comparative analysis of the roles of financial services institutions within prominent OECD economies.2. Develop a critical awareness of the role of mergers and acquisitions (M & A) in the global financial services arena, and various strategies employed by the MNC in the acquisition process.3. Compare and contrast the role of offshore financial centers versus onshore financial centers in the global financial services arena, and determine the characteristics of an efficient and effective offshore financial centre.4. Demonstrate a comparative knowledge of the role of alternative financial services, including Islamic banking and insurance and operation of alternative money transfer networks. 5. Discuss the role of securitization and deregulation in financial services6. Demonstrate a critical understanding of financial service sector developments and trends in 'emerging' and 'transition' markets.7. Discuss the roles of BIS, IOSCO, IAIS, IASB, WTO and GATS with particular reference to international financial services.8. Discuss the composition and workings of the foreign exchange market.

Teaching / Learning Strategy

Lectures are designed to provide the key conceptual framework to support tutorials, seminars and independent and directed learning. Case studies in Mergers and Acquisitions, with individual and group contribution to support and enhance understanding of the M & A process, are designed to contextualise theoretical content in international financial services. Seminars will be used to identify and fulfill student-led learning needs. Use of on-line databases, internet sources of information and published academic work, both refereed and non-refereed, in directed-learning, tutorials and assignments. Blackboard and similar virtual learning environments (VLE), to support and enhance the student learning experience. This will be enhanced by the use of discussion boards, blogs and linked external online resources. The following assessment and student feedback strategies will additionally be adopted by this module: A: Facilitating the development of self-assessment Students will be provided with a template for the evaluation of their coursework, and asked both to identify the strengths and weaknesses of their own work in relation to the criteria prior to submission and to indicate the kind of feedback they would like when handing in work. B: Encouraging dialogue Time will be set aside in seminars to discuss feedback provided and strategies to improve performance next time. C: Clarifying good performance Students will be given clear guidance on requirements and given time to discuss and reflect upon those criteria in class. D: Providing opportunities to close the gap between current and desired performance Feedback will identify generic and individual action points, and students will also be encouraged to identify their own action points to improve performance in future. E: Delivering high quality information about your learning Feedback will be provided soon after submission and identify strengths, weaknesses and corrective advice. Time will also be set aside in seminars to provide feedback on formative assignments. F: Encouraging positive motivational beliefs and self-esteem All feedback will be constructive and clear. It will identify strengths in performance. G: Providing information to teachers that can be used to help shape the teaching Opportunities in class will be provided for students to identify 'challenging' issues in the course material, and they will be asked to indicate the kind of feedback they would like when handing in work.

Indicative Reading

Texts: 1.Eitman, David K, Stonehill, Arthur I, Moffett Michael, H (2006), "Multinational Business Finance", 11th Ed., Boston MA, Addison-Wesley Publishing Co; Inc. 2. Pike, Richard & Neale, Bill (2005) "Corporate Finance & Investment - Decisions & Strategies", 5th Rev. Ed., FT Prentice Hall 3. Ritter, L, Silber W & Udell G (2007) "Principles of Money, Banking & Financial Markets", 12th Rev Ed., Addison Wesley Longman 4. Hill, Charles W.L. (2006), "International Business", 6th Rev. Edition, Boston, McGraw Hill 5. Philbeam, Keith (2005), "International Finance" 3rd Ed., Palgrave MacMillan 6. Ali, Syed Nazim (2005) "Islamic Banking: Current Legal and Regulatory Issues", Islamic Finance Project, Harvard Law School, Boston, Mass Journals & selected academic papers: Journal of Financial Services Research Journal of Money, Credit and Banking Journal of Banking and Finance Journal of Money Laundering Control Journal of Financial Crime World Development Finance & Development Quarterly Schipper, Katherine, 2005, The introduction of International Accounting Standards in Europe: Implications for international convergence,' European Accounting Review, Volume 14, Number 1, Number 1/, pp. 101-126(26) Whittington, Geoffrey, 2005, The adoption of International Accounting Standards in the European Union,' European Accounting Review, Volume 14, Number 1, Number 1/, pp. 127-153(27) Tarca A., 2004, International Convergence of Accounting Practices: Choosing between IAS and US GAAP,' Journal of International Financial Management and Accounting, Volume 15, Number 1, March, pp. 60-91(32) Hora J.A.; Tondkar R.H.; Adhikari A, 1997, International accounting standards in capital markets,' Journal of International Accounting, Auditing and Taxation, Volume 6, Number 2, pp. 171-190(20), Elsevier Flower J., 1997, The future shape of harmonization: the EU versus the IASC versus the SEC', European Accounting Review, Volume 6, Number 2, 1 July, pp. 281-303(23) Duverne, Denis; Le Douit, Jacques, 2007, IFRS for Insurance: CFO Forum Proposals,' The Geneva Papers, Volume 32, Number 1, pp. 62-74(13) Kawai, Yoshi, 2005, IAIS and Recent Developments in Insurance Regulation,' The Geneva Papers, Volume 30, Number 1, January, pp. 29-33(5) Meyer, Lothar, 2005, Insurance and International Financial Reporting Standards,' The Geneva Papers, Volume 30, Number 1, January, pp. 114-120(7) Neville, Peter, 2005, The development of international regulatory associations,' Journal of Financial Crime, Volume 12, Number 3, pp. 264-266(3) Jordans, Roman, 2003, The legal approach to investment advisers in different jurisdictions,' Journal of Financial Regulation and Compliance, Volume 11, Number 2, pp. 169-184(16) Aaditya Mattoo, 'Financial Services and the WTO: Liberalisation in the Developing and Transition Economics', WTO Staff Working Paper, 1998. John Hawkins & Dubravko Mihaljek, 'The Banking Industry in The Emerging Market Economics: Competition, Consolidation and Systemic Stability - An Overview', BIS Paper 4. James R. Barth, Gerard Caprio, Jr., and Daniel E. Nolle, 'Comparative International Characteristics of Banking', Office of the Comptroller of the Currency Economic and Policy Analysis Working Paper 1, 2004. Cornford, Andrew, 2004, 'The WTO Negotiations On Financial Services: Current Issues and Future Directions' United Nations Conference On Trade And Development Discussion Paper, No. 172, June 2004 Jobst, Andreas, 2005, The regulatory treatment of asset securitisation: The Basel Securitisation Framework explained,' Journal of Financial Regulation and Compliance, Volume 13, Number 1, pp. 15-42(28) Coles A.; Hardt J., 2000, Mortgage Markets: Why US and EU Markets Are So Different.' Housing Studies, Volume 15, Number 5, 1 September, pp. 775-783(9) Barnes D.; Warman N., 2000, Is securitisation still a useful balance sheet tool?,' Balance Sheet, Volume 8, Number 2, pp. 14-18(5) Newspapers & Magazines: Financial Times The Economist Banker Euromoney Financial World. Selected Websites: International Finance Corporation - http://www.ifc.org International Monetary Fund - http://www.imf.org OECD - http://www.oecd.org World Bank - http://www.worldbank.org

Transferrable Skills

This module will systematically develop the data gathering, critical analysis and interpretation skills of the students in a manner which encourages independent initiative and learning. In seminars and tutorials, students will develop their communication and group working skills through practical exercises and group discussions

Module Structure

Activity Total Hours
Independent Learning (FT) 99.00
Seminars (FT) 10.00
Lectures (FT) 20.00
Independent Learning (FT) 53.00
Assessment (FT) 18.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 0.00 30.00 35% Case Study - 2,000 word essay
Exam (Exams Office) 3.00 70.00 35% Exam invigilated by Examinations Office