This module is not currently running in 2024 to 2025.
In the wake of the largest economic crisis in recent times many causes have been proposed for the turmoil. At the centre of the argument is banks' excessive risk-taking behaviour, especially through abundant lending, over-leveraging and dramatic expansion in the usage of credit transfer products in the years leading up to the crisis. On the policy side, incompetence of regulators overseeing the banking system is voiced. Therefore, understanding the banking business and regulation from an international perspective is of paramount importance to prevent future economic crises that may be caused by banks. In this perspective, the module examines the different types of banks, their financial features and risk in banking. It introduces several international banking activities that link national financial markets globally. Particular focus is placed on the importance of regulation from an international perspective through Basel accords.
Topics covered in this module include:
• Introduction to financial intermediation
• Activities of International Banks and relationship banking
• Banks’ balance sheet and income statement
• Perceptions of the global banking before/after 2007/08 financial crisis
• Income structure and balance sheet of banks and bank risks: Retail vs. Investment banks
• International activities of banks: Syndicated lending and asset securitisation
• Bank regulation and supervision: Basel I, II and III
• The 2007/2008 global banking crisis: Causes, the aftermath and implications for banks and regulators
The module will be taught by lectures, seminars and private study.
Total Contact Hours: 33
Private Study Hours: 117
Main assessment methods
Examination: two-hour, unseen and closed book: 70%
Group Report: 2,000 words: 30%
Reassessment methods
100% examination
Casu, B., Girardone, C. and Molyneux, P. (2015), Introduction to Banking, 2nd Edition. Harlow: Pearson Education Limited.
Finel-Honigman, I. (2015) International Banking for a New Century. New York, Routledge
Saunders, A. and Millon Cornett, M. (2017) Financial Institutions Management: A Risk Management Approach. 9th Edition. Columbus, OH: McGraw-Hill.
See the library reading list for this module (Medway)
8. The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
8.1. Demonstrate knowledge and critical understanding of the bank's financial statements which helps them in evaluating the bank’s financial condition.
8.2. Demonstrate knowledge and critical understanding of the international banking environment and operations of banks from a global perspective.
8.3. Demonstrate knowledge and critical understanding of the role, function and consequences of regulation and lack of regulation.
8.4. Demonstrate knowledge and critical understanding of the dynamic nature of inter-relationships between bank risk taking and regulation in the context of 2007/2008 global financial crises.
9. The intended generic learning outcomes.
On successfully completing the module students will be able to:
9.1. Research, plan, and work independently.
9.2. Effectively, communicate information, ideas, and solutions to both specialist and non-specialist audiences.
9.3. Critically evaluate arguments and assumptions, and make judgements to offer alternative solutions.
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