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Bank Management

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)

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

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

Indicative learning resources - Basic reading

Key words search

Bank management; credit risk; risk assessment; banking crises