BANK MANAGEMENT OPERATIONS AND STRATEGY OF FINANCIAL OPERATIONS

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN324975
Module Leader Chioma Nwafor
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • B (January start)
  • A (September start)
  • C (May start)

Pre-Requisite Knowledge

Knowledge UK Honours degre or equivalent

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 managing and pricing deposit and Offshore banking practice. Students will critically assess how banks communicate with their customers including a detailed evaluation of "The Fair, Clear and Not Misleading Rule" as well as the effect of FinTech on conventional bank model. The module will also aim to develop an awareness of global issues in bank management and operations. A core element of this module is the use of spreadsheet to solve case-studies. This is used to encourage the development of analytical skills and serves as a useful exercise for those that may want to pursue a career in this area.

Syllabus

-360 1. Introduction to the Business of Banking ; 2. Bank Authorisation process in the UK; 3. Offshore Banking Practice; 4. Banks and the FinTech Challenge; 5. Understanding the Financial Statements of Banks and their Principal Competitors; 6. The Management of Capital under Basel I, II, and III 7. Analysis and Measurement of Credit Risk on Individual Loans; 8. Credit Risk Modelling Under Basel I, II, and II; 9. Analysis and Measurement of Credit Risk on Loan Portfolio -360 10. Measuring and Managing Liquidity Risk; 11. Managing and Pricing Deposit Services; 12. Contemporary Issues in Bank Management

Learning Outcomes

On successful completion of this module, students should be able to:1) Critically examine bank operations and their role within the economy. 2) Understand and implement several Value at Risk (VaR) models including: the Variance-covariance approach, historical simulation approach and the Monte Carlo simulation approach.3) Analyse how banks manage their assets, liabilities and overall liquidity. 4) Show a critical understanding of contemporary procedures utilised in management of credit risk in banks.5) Demonstrate an analytical comprehension of the role of capital in risk management in a bank.6) Examine and interpret liability and liquidity management issues7) Describe the offshore banking market and the regulatory principles that affect offshore banking activities8) Describe the construction and Management of a rating system, including rating assignment, rating quantification and rating validation.9) Define, evaluate and critically analyse loan sales, Asset-Backed Securities as techniques for managing risk.10) Explain the effect of technology on banking, including opportunities and challenges.

Teaching / Learning Strategy

The learning and teaching strategy uses a blended approach of lectures, tutorials, labs 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 comprehensive study guide in the form of 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. The bank management lab sections will provide the medium for gaining practical skills through the use of spreadsheets to explore the lecture themes in more detail. Spreadsheet solutions and solutions to quantitative questions will be available on GCULearn. All students will be directed to further reading to support the theoretical and practical content of the module. 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: A: 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. B: Encouraging dialogue: Students are encouraged to discuss their comments with lecturers, arrange meetings with academic advisors to review performance. C: 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). D: 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. E: Delivering high quality information about individual learning: Feedback will be provided within 3 weeks of submission, covering strengths, weaknesses and corrective advice. F: Encouraging positive motivational beliefs and self-esteem: Feedback will be designed to encourage and be constructive. G: 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

-360 1. Main texts: Saunders, A. and Cornett, MM (Latest Edition) 'Financial Institutions Management', McGraw-Hill 2. Rose, P.S. and Hudgins, S.C. (2010) 'Bank Management and Financial Services', McGraw-Hill. Newspapers and Magazines : -360 1. The Financial Times. 2. The Wall Street Journal. 3. The Daily Telegraph 4. The Times 5. The Banker Financial World 6. Euro money 7. The Economist 8. Forbes Fortune Business Week Journals: -360 1. Journal of Commercial Lending 2. Journal of Bank Marketing 3. Journal of Risk and Uncertainty 4. The Journal of Financial Services Research 5. Journal of Finance 6. Journal of Forecasting, 7. Journal of Banking and Finance 8. The Journal Financial Intermediation Internet sites : European Central Bank: www.ecb.europa.eu. Bank for International Settlements: www.bis.org Bank of England: www.bankofengland.co.uk British Bankers Association: www.bba.org.uk Chartered Institute of Bankers: www.charteredbanker.com Financial Times: www.ft.com Economist: www.economist.com Financial Conduct Authority: www.fca.gov.uk Wharton Financial Institutions Center: https://fic.wharton.upenn.edu/

Transferrable Skills

This module will develop the following skills in a manner that encourages independent initiative and critical thinking: -360b7 Personal and interpersonal skills -360b7 Oral and written communication skills b7 Data gathering, analysis and interpretation b7 Use of Excel for data analysis b7 Problem Solving and Critical Thinking b7 Ability to Work Independently b7 Research Skills in Order to Complete the Coursework As a part of the broader transferable skills students will be able to demonstrate: 1. Advanced knowledge in the subject area. 2. Use computers as a learning tool to explore models, ideas and for problem solving.

Module Structure

Activity Total Hours
Lectures (FT) 24.00
Tutorials (FT) 7.00
Practicals (FT) 5.00
Independent Learning (FT) 84.00
Assessment (FT) 30.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 02 n/a 40.00 45% Coursework 1500 word count. Essay
Course Work 01 n/a 60.00 45% Continuous Assessment 3 Multiple Choice Questions