MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS. Module name. Introduction to Banking and Financial Intermediation

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1 MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS Module name Introduction to Banking and Financial Intermediation Module code IF1002 School Cass Business School Department or equivalent UG Programme (Cass Business School) UK credits 30 ECTS 15 Level 4 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims This module provides an introduction to Financial Intermediation, in general, and to the banking system in particular. It looks at key functions of banks from an analytical perspective, with an emphasis on what differentiates banks from other financial institutions, information problems that characterize the banking industry, and relevant related issues. By the end of this module, you will understand why financial intermediaries exist and their role and impact in the global economy. You will also understand the key differences between commercial and investment banking and the functions they perform. You will acquire knowledge of asymmetric information and agency problems in commercial/investment banking; you will understand the different sources of bank income; how banks have diversified over time; the underwriting, trading, brokerage. Content outline Basic Principles: Understanding financial systems and institutions Costs and benefits of intermediation Agency costs and Information Asymmetries Intermediation and the real economy Definition of risk, return and diversification Understanding interest rates and how they are set An Introduction to the valuation of assets

2 Banks What is a bank Money definition; demand and supply of money; Deposit and loan creation Understanding banks balance sheet and measuring performance Off Balance Sheet Items: An Introduction to Derivatives Monetary Policy - Banks and the transmission mechanism A look at Investment Banking What is specific about Investment Banks Introduction to IBs main functions IB and their role in IPOs and M&As Proprietary Trading and Risk exposure WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Understand the meaning of banking, both investment and commercial. - Understand the bank market place both in the UK and internationally. - Have a broad appreciation of the roles of financial intermediaries in the global economy Skills: - Communicate more effectively. - Improve your essay writing skills. - Find materials more effectively. - Discuss various aspects of banking. - Develop Case Study skills. - Develop your teamworking skills. - Improve your presentation skills.

3 - Lead discussions and synthesise ideas. - Develop an effective analysis framework. Values and attitudes: - Understand banking controls, including ethics. HOW WILL I LEARN? Lectures and classes. Teaching component Teaching type Contact Selfdirected study Placement Lectures Lecture Classes Tutorial Totals Total student learning WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments Final Examination to be held in May covering the whole course material. Coursework: one invigilated class test in the first week of Term 2 covering the first term material. Assessment component Coursework Class Test Exam - 3 Assessment type Weighting Minimum qualifying mark Set Exercise N/A Written Exam N/A Pass/Fail? Assessment criteria Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade- Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to

4 students prior to an assessment taking place. More information will be available in the UG Assessment Handbook and from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Main textbook: Peter Howells and Keith Bain, The Economics of Money Banking and Finance (4e, Pearson Education, 2009). Additional readings: Heffernan, Modern Banking (Chichester: Wiley, 2004). Rose and Hudgings, Bank Management (McGraw Hill, 2010). Version: 1.0 Version date: July 2012 For use from:

5 Appendix: see for the full list of JACS codes and descriptions CODES HESA Code Description Price Group 27 Business & Management D JACS Code Description Percentage (%) N310 Banking The study of the banking industry. 100