Module ECON42015: MONEY AND BANKING

Department: Economics, Finance and Business (Economics and Finance)

ECON42015: MONEY AND BANKING

Tied To

• L1K509: International Banking and Finance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• to develop students' ability to master the knowledge and understanding at an advanced level of key issues in the field of money and banking;
• to provide students with the opportunity to develop the ability to critically understand theoretical and empirical research work in the field of banking;
• to provide students with the ability to critically review this specialised complex area of knowledge with a view to undertaking a dissertation in the area of money and banking or a closely related area.

Content

• Overview: Money, Banking (Domestic and International);
• Banking: The Banking Firm;
• Optimal Contracting for Banks: Bank-Borrower Relationships;
• Banking Sector problems: Instability and Failures;
• Regulation of Banks: Safety and Soundness of the Banking System;
• Rationale for Central Banks: Why do banks need a Central Bank?
• International Issues: Banking Transactions across National Boundaries and International comparisons.

Learning Outcomes

• By the end of the module students should:
• have an advanced knowledge and critical understanding of the existence of money and banks (microfoundations) and the implications for allocative efficiency and regulation;
• have an understanding of the complex roles of asymmetric information, signalling, adverse selection, risk aversion, agency and moral hazard in banking activities;
• have explored, understood and appreciated the complexity of the current academic literature and its implications for professional practice and regulatory stance;
• have demonstrated an ability to learn and work independently in this area, exercising critical judgement and discrimination in the resolution of complex problematic situations.

• By the end of the module students should:
• be able to use highly specialised academic skills in the analysis of relevant specific problems experienced in the field of banking;
• be able to apply problem solving and analytical skills in the area of money and banking.

• Written Communication;
• Planning, Organising and Time Management;
• Problem Solving and Analysis;
• Using Initiative;
• Numeracy;
• Computer Literacy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• A combination of lectures, seminars and guided reading will contribute to achieving the aims and learning outcomes of this module. Summative assessment by written examination will test students' knowledge and understanding of the subject-matter, their critical judgement and problem-solving skills.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Work prepared by students for seminars; answers to questions either discussed during a seminar, or posted on DUO; feedback on discussions with teaching staff during consultation hours, or via e-mail.