SHE Level 5
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MMN324012
Module Leader Chioma Nwafor
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge


Summary of Content

The module aims to develop a critical awareness of the management of large commercial banks - both their operations and how this exposes them to risk. This will include a look at the theory behind retail banks; an overview of the sector; analysis of the balance sheet of banks and performance analysis using FRA; managing liquidity and liabilities; managing the investment function; asset management - the consumer lending decision; asset management - the business lending decision; the use loan sales and securitisation; diversification, merger and acquisition as a strategy; the measurement of key risks to which financial institutions are exposed; credit, liquidity, interest rate and market risk measurement; the use of financial derivatives to manage risk; futures; forwards; options; swaps; capital adequacy; investment banking.


-284 The theory of retail banks; An overview of the banking sector; Analysis of the balance sheet of banks; Performance analysis using FRA; Managing liquidity and liabilities; Managing the investment function; Asset management - the consumer lending decision; Asset management - the business lending decision; The use loan sales and securitisation; Diversification, merger and acquisition as a bank strategy; Credit risk measurement and management; Liquidity risk measurement and management; Interest rate risk measurement and management; Market risk measurement and management; Introduce the use of financial derivatives to manage risk; The use of futures and forwards to manage risks in banks; Analysis of options to manage risks in banks; How swaps are used to manage risks in banks; Capital adequacy in banks; The risks associated with operating a bank; Contemporary procedures utilised in the financial risk management of banks; How banks manage risk, including credit, interest rate, liquidity and market risk; Investment banking and sources of fee income issues of international banking -108 --108 01 Introduction to Banking and Financial Services RH Ch.1,3 / Lecture Notes-108 02 Financial Statements of Banks RH Ch.5 / Lecture Notes-108 03 Evaluation of Banks' Performance RH Ch.6 / Lecture Notes-108 04 Asset-Liability Management RH Ch.7 / Lecture Notes-108 05 The Investment Function in Financial Services Management RH Ch.10 / Lecture Notes-108 06 Liquidity and Reserves Management: Strategies and Policies RH Ch.11 / Lecture Notes-108 07 Managing and Pricing of Deposit Services RH Ch.12 / Lecture Notes-108 08 Managing and Pricing of Non-Deposit Liabilities RH Ch.13 / Lecture Notes-108 09 Investment Bank and Insurance Services RH Ch.14 / Lecture Notes-108 10 Understanding Corporate Lending RH Ch.17 / Lecture Notes-108 11 Consumer Loans, Credit Cards and other forms of Lending RH Ch. 18/ Lecture Notes-567 -108

Learning Outcomes

On successful completion of this module, the student should be able to:1. critically examine bank operations;2. understand and critically comment on internal bank structures and the operation of their balance sheets;3. analyse how banks manage their assets, liabilities and overall liquidity;4. critically examine the role of banks within an economy;5. examine, define and evaluate the risks associated with operating a bank;6. show a critical understanding of contemporary procedures utilised in the financial risk management of banks;7. show an analytical comprehension of the role of capital in risk management in a bank;8. examine and interpret liability and liquidity management issues; 9. define, evaluate and critically analyse diversification as a technique for managing risk.10. show how banks can utilise duration, futures, forwards options and swaps to manage risk on the balance sheet;11. explain how investment banking 'fits' with retail banking.12. examine corporate and consumer loans, credit cards and other forms of lendin13. understand issues in mergers and acquistion14. examine issues of international bannking

Teaching / Learning Strategy

The MSc International Banking, Finance and Risk Management programme is geared towards the development of business skills that encourage responsible leadership, internationalisation and professionalism, aiming to engage students in analysis, research and discussion of contemporary, real life issues. The teaching and learning strategy aims to embed these attributes. Face to face contact involves three hours of class contact per week: normally 2 lectures and 1 seminar. 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 will be then expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and where necessary, computational questions. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussion 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 taking place, providing the basis for deepening professional skills, knowledge and understanding. Module classes are conducted in workshop format providing a mix of tutor led, student led and group learning. Extensive use is made of VLE to complement and support the face to face and independent learning elements of the module as well as enhancing the student learning experience and engagement. The V LE site used as a repository for resources including key readings such as scanned material, journal articles, book chapters, digital book chapters, web-links, embedded video clips but also for interactive forums such as discussion boards and blogs. The teaching and learning strategy includes 8 hours of practicals to complement the face to face delivery of the module and independent learning through such activities as specialist speakers, site visits related to project management and other academic community activities to enhance the learning experience such as an away-day to develop dissertation topics from within the distinct module areas The module has been designed for delivery either utilising lectures for full time and part time on campus students. All students will receive a comprehensive study guide incorporating a module handbook. The teaching and learning strategy combines theoretical and illustrative content from lectures with directed learning. The materials for the directed learning will contain regular self-assessment questions which will be formerly assessed and activities designed to complement the lectures/materials. This will include essay plans in order to build up foundation knowledge, critical awareness and essay writing/ structuring experience. The module will make use of online databases, internet sources of information and journal articles where relevant. The answers to the directed learning will be available online. STUDENT FEEDBACK STRATEGY: A: Facilitating the development of self-assessment: Students will be provided with a the criteria/standards for the evaluation of their coursework, and asked both to identify the strengths and weaknesses of their own work in relation to those criteria prior to submission and to indicate the kind of feedback they would like when handing in the work. B: Encouraging dialogue: Time will be set aside in lecture sessions to discuss feedback provided and strategies to improve performance. C: Clarifying good performance: Students will be given clear guidance on requirements and given time to discuss and reflect upon those criteria in lectures. 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. 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. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. -108 --108 01 Introduction to Banking and Financial Services RH Ch.1,3 / Lecture Notes-108 02 Financial Statements of Banks RH Ch.5 / Lecture Notes-108 \

Indicative Reading

Main texts: Saunders, A. and Cornett, MM (2011) 'Financial Institutions Management', McGraw-Hill Rose, P.S. and Hudgins, S.C. (2010) 'Bank Management and Financial Services', McGraw-Hill. Others: Koch, T.W. (2006) 'Management of Banking', 6th Edition, Thomson. Hempel, G.H. Simonson, D.G. Coleman, A.B. (1999) 'Bank Management:Text and Cases'. 5th Edition. Wiley. Newspapers and Magazines: 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 Internet sites: European Central Bank: Bank for International Settlements: Bank of England: British Bankers Association: Chartered Institute of Bankers: Financial Times: Economist: Financial Services Authority: Wharton Financial Institutions Center:

Transferrable Skills

After completion of the course students will have developed the following transferable skills: -284 - analytical and numerical ability; - clear communication, in both written and oral form; - the ability to work independently; - IT skills; research skills in order to complete coursework.

Module Structure

Activity Total Hours
Lectures (FT) 24.00
Practicals (FT) 8.00
Independent Learning (FT) 112.00
Seminars (FT) 12.00
Assessment (FT) 44.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 50.00 45% Exam - 2 Hours
Coursework 1 n/a 50.00 45% 2000 word coursework