BE650-7-AU-CO:
Modern Banking

The details
2019/20
Essex Business School
Colchester Campus
Autumn
Postgraduate: Level 7
Current
Thursday 03 October 2019
Saturday 14 December 2019
20
24 September 2019

 

Requisites for this module
(none)
(none)
(none)
(none)

 

(none)

Key module for

MSC N31012 Banking and Finance,
MSC N43112 International Accounting and Banking,
MSC N431PP International Accounting and Banking with Professional Placement

Module description

The module provides a good grasp of both the basics (the structure and environment of banking) and selected aspects of the applied economics of the modern banking firm. The topics covered include structure-conduct-performance, competition, bank efficiency, regulation, international banking and bank failures and crises. Students are supposed to be familiar with basic concepts from an intermediate undergraduate course in topics with an analytical and/or quantitative emphasis such as (corporate) finance, derivatives, microeconomics, macroeconomics or/and econometrics.

Module aims

Provide sound knowledge and in-depth understanding of the key concepts and main developments in modern banking, including:

• Market structure, competition, SCP paradigm.
• Mergers and acquisitions, banks’ objectives, efficiency in banking.
• Regulation of the banking sector and the rationale for it.
• Banking crises and international financial architecture.
• Financial technology innovation

Module learning outcomes

On successful completion of the module, students will be able to:
• Evaluate the impact of the main environmental forces of change on the strategies and performance of modern global banks.
• Evaluate critically the empirical evidence related to the industrial structure of banking and efficiency.
• Appraise the role of banks in a modern society.
• Understand why banks need regulation and assess the regulatory responses in light of the recent credit crisis.
• Understand how recent financial technology innovations have affected the banking sector.

Module information

Skills for Your Professional Life (Transferable Skills)

By the end of the module, students should be able to:

* Conduct an independent search and review of specialized academic literature on banking, identify and evaluate relevant information.
* Develop, use and understand relevant quantitative models and interpret quantitative results.
* Effectively communicate ideas and provide sound arguments in both written form and orally using academic style of communication.
* Improve data analytical skills using databases, internet and other information technologies to retrieve, analyse and communicate information.
* Effectively manage time, be autonomous in learning and develop positive student-staff relationships.
* Increase awareness of recent developments in the banking sector.

Learning and teaching methods

Learning and Teaching Methods One two-hour lecture per week for ten consecutive weeks. Students are expected to do relevant reading and preparation before the lecture. It is also strongly recommended that you do additional reading to supplement the lecture material.

Bibliography

  • Diamond, Douglas W. (1996) 'Financial intermediation as delegated monitoring: A simple example', in Economic Quarterly. vol. 82 (3) , pp.51-66
  • Barbara Casu; Claudia Girardone; Philip Molyneux. (2015) Introduction to banking, Harlow: Pearson.
  • Goddard, John A.; Molyneux, Philip; Wilson, John O. S. (c2001) European banking: efficiency, technology, and growth, Chichester: John Wiley.
  • Wilson, John O.S.; Casu, Barbara; Girardone, Claudia; Molyneux, Philip. (2010) 'Emerging themes in banking: Recent literature and directions for future research', in The British Accounting Review. vol. 42 (3) , pp.153-169
  • Casu, B.; Girardone, C. (1931-1938) 'Bank Competition, Concentration and Efficiency in the Single European Market', in The Manchester school, Manchester: Dept. of Economics, University of Manchester. vol. 74 (4) , pp.441-468
  • Mavrotas, George; Vinogradov, Dmitri. (2007) 'Financial sector structure and financial crisis burden', in Journal of Financial Stability. vol. 3 (4) , pp.295-323
  • Goodhart, C. A. E. (1989) Money, information, and uncertainty, Basingstoke: Macmillan.
  • (2015) The Oxford handbook of banking, Oxford: Oxford University Press. vol. Oxford handbooks in finance
  • Allen N. Berger; Philip Molyneux; John O. S. Wilson. (2009) The Oxford Handbook of Banking, Oxford: Oxford University Press.
  • Berger, Allen N; Demsetz, Rebecca S; Strahan, Philip E. (1999) 'The consolidation of the financial services industry: Causes, consequences, and implications for the future', in Journal of Banking & Finance. vol. 23 (2-4) , pp.135-194
  • Shelagh A. Heffernan. (2005) Modern banking, Chichester: Wiley.
  • Douglas W. Diamond. (1984) 'Financial Intermediation and Delegated Monitoring.', in Review of Economic Studies. vol. 51 (3) , pp.393-414
  • Casu, Barbara; Girardone, Claudia. (2009) 'Testing the relationship between competition and efficiency in banking: A panel data analysis', in Economics Letters. vol. 105 (1) , pp.134-137
  • (2006) European Banking Consolidation: PriceWaterhouseCoopers.
  • Dario Focarelli; Fabio Panetta; Carmelo Salleo. (2002) 'Why Do Banks Merge?', in Journal of Money, Credit & Banking. vol. 34 (4) , pp.1047-1066
  • Frederic S. Mishkin. (2016) The economics of money, banking, and financial markets, Harlow: Pearson Education Limited. vol. Pearson series in economics
  • Douglas W. Diamond; Philip H. Dybvig. (1983) 'Bank Runs, Deposit Insurance, and Liquidity', in Journal of Political Economy. vol. 91 (3) , pp.401-419
  • (2014) EU Banking Structures, Frankfurt: European Central Bank (ECB).
  • Bikker, Jacob A.; Haaf, Katharina. (2002) 'Competition, concentration and their relationship: An empirical analysis of the banking industry', in Journal of Banking & Finance. vol. 26 (11) , pp.2191-2214
  • Kevin Dowd. (1996) 'The Case for Financial Laissez-faire', in Economic Journal. vol. 106 (436) , pp.679-687
  • Allen N. Berger; Asli Demirgüç-Kunt; Ross Levine; Joseph G. Haubrich. (2004) 'Bank Concentration and Competition: An Evolution in the Making', in Journal of Money, Credit & Banking. vol. 36 (3) , pp.433-451
  • Steven J. Pilloff; Anthony M. Santomero. (1997) The Value Effects of Bank Mergers and Acquisitions, Philadelphia, PA: Wharton School, University of Pennsylvania., pp.97-107
  • Franklin Allen; Douglas Gale. (2000) Comparing financial systems, Cambridge, MA: MIT Press.
  • Philip Molyneux; William Forbes. (1995) 'Market structure and performance in European banking', in Applied Economics. vol. 27 (2) , pp.155-159
  • Robert DeYoung; Douglas D. Evanoff; Philip Molyneux. (2009) 'Mergers and Acquisitions of Financial Institutions: A Review of the Post-2000 Literature', in Journal of Financial Services Research. vol. 36 (2) , pp.87-110
  • Allen N. Berger. (1995) 'The Profit-Structure Relationship in Banking—Tests of Market-Power and Efficient-Structure Hypotheses', in Journal of Money, Credit & Banking. vol. 27 (2) , pp.404-431

The above list is indicative of the essential reading for the course. The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students. Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Weighting
Coursework 2,000 word essay 13/12/2019 100%
Exam 120 minutes during Summer (Main Period) (Main)

Overall assessment

Coursework Exam
50% 50%

Reassessment

Coursework Exam
50% 50%
Module supervisor and teaching staff
Dr Jose Linares Zegarra
ebspgtad@essex.ac.uk

 

Availability
Yes
No
Yes

External examiner

Prof Donal Gregory McKillop
Queen’s University Belfast
Professor of Financial Services
Resources
Available via Moodle
Of 22 hours, 20 (90.9%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).

 

Further information
Essex Business School

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