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Bank Management

Module title	Bank Management
Module code	BEAM065
Academic year	2019/0
Credits	15
Module staff	(Lecturer)

Duration: Term	1	2	3
Duration: Weeks		11

Module description

This module aims to provide you with a thorough grounding in a number of key advanced topics of bank management and risk assessment, including associated reporting and regulation.  You will establish a solid foundation in the key issues confronting bank mangers today, a familiarisation with the basic financial models that are used to formulate decisions, and an understanding of the strengths and weaknesses of data analysis.  This module focuses on decision making and offers a unique approach to understanding commercial bank management.  This module addresses the specific aspects of commercial credit analysis, managing credit risk and liquidity risk and demonstrates the application of the model or framework using sample data analysis.  The students not only observes how certain factors influence credit, investment, funding, and pricing decisions, but also develops an appreciation of the trade-offs between return and risk.

Module aims - intentions of the module

The aim of the module is to introduce you to the principles and mechanisms of commercial banking.  You will establish a solid foundation in the key issues confronting bank mangers today, a familiarisation with the basic financial models that are used to formulate decisions and an understanding of the strengths and weaknesses of data analysis.  The numerous applications help the students to recognise the trade-offs involved in making financial decisions and to develop the logical thought processes needed to reach reasonable conclusions.  Students will examine the strengths and weaknesses of traditional balance sheet measures of bank risks and explain the relationship between the composition of bank funds and various bank risks.  Students will appraise framework for analysing bank performance over time and relative to peer banks.  Students will also evaluate strategies to identify problem banks and successful bank restructuring procedures and understand the different approaches taken to resolve a banking crisis.  International examples will be covered, including up-to-date financial news in relevant financial publications.  You will also critically appraise bank-based financial crises, with a particular focus on the recent financial crises.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. Discriminate and critically appraise various banking models and channels for delivering banking services in a global context.
• 2. Critically appraise the operation of commercial banks and evaluate how the regulation of depository institutions impacts their safety and soundness.
• 3. Appraise framework for analysing bank performance over time and relative to peer banks.
• 4. Apply key financial ratios that can be used to evaluate profitability and the different types of risks faced by banks.
• 5. Distinguish between types of bank risk; credit, liquidity, interest rate, capital, operational, and reputational.
• 6. Explain the function of bank capital both from the view of bank regulators and bank managers.
• 7. Provide an application of commercial credit analysis and introduce the fundamental credit issues when analysing loan requests with ethical ethos.
• 8. Critically appraise global bank-based financial crises.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 9. Develop strong theoretical arguments based on analytical and statistical reasoning.
• 10. Rigorously analyse problems in banking.
• 11. Critically appraise theory and practice in banking.
• 12. Application of quantitative and qualitative information to finance problems.

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 13. Apply the quantitative tools in making financial decisions.
• 14. Make appropriate use of learning resources.

Syllabus plan

• Overview of the Banking Industry and Regulation
• Evaluating Bank Performance
• Funding the Bank
• Managing Liquidity
• Effective Use of capital
• Overview of Credit Policy and Loan Characteristics
• Evaluating Commercial Loan Requests and Consumer Loans
• Managing Credit Risk
• General Risk Management and International Risk Assessment
• Bank Failures and Banking Crises

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
34	116	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning & Teaching activities	22 hours (2 per week)	Lectures
Scheduled Learning & Teaching activities	10 hours (1 per week)	Tutorials
Scheduled Learning & Teaching activities	2 hours	Revision
Guided Independent Study	116 hours	Reading and research; web-based activities

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Q&A sessions using Turning Point to show awareness of the concepts and issues	Participation in lectures and tutorials	1-8	Feedback and comments in the classroom
Engagement with online discussion forum in relation to relevant areas	Online discussion contributions	1-8	Online discussion feedback from peers and lecturer

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
30	70	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Assignment	30	1,500 words	1-14	Written feedback
Examination	70	2 hours	1-12	Exam grade and generic feedback on ELE

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Assignment	Assignment (30%) 1,500 words	1-14	July
Exam	Examination (70%) 2 hours	1-12	Aug/Sep

Indicative learning resources - Basic reading

Key words search

Bank management; credit risk; risk assessment; banking crises

Credit value	15
Module ECTS	7.5
Module pre-requisites	None
Module co-requisites	None
NQF level (module)	7
Available as distance learning?	No
Origin date	16/02/2017
Last revision date	29/10/2018