IF1002
Banking 1: Commercial & Investment Banking
MODULE SPECIFICATION - IF1002 -
Banking 1: Commercial & Investment Banking
Introduction This document outlines core information regarding a module. The information is regularly reviewed by the University and should be read in parallel with the relevant programme specification. Module Title Module Reference Code Home School Home Department Module Credits Module Level Banking 1: Commercial & Investment Banking IF1002 Cass Business School UG Programme (Cass Business School) 30 Level HE1
Module Rationale To complement "Financial Markets and the City" by providing an in depth look at key functions of banks from an analytical perspective, with an emphasis what differentiates banks from other financial institutions, information problems, and related issues.
Educational Aims By the end of this module, students should understand the role of commercial and investment banks in the UK financial system and the international environment. Students should understand the ''core'' banking functions and how these are related to different types of risk banks incur. Students will also acquire knowledge of asymmetric information and agency problems in commercial/investment banking, sources of bank income, and how banks have diversified, underwriting, trading, brokerage, and market manipulation.
Outline Content Commercial Banking Banking: The Meaning of Banking: what distinguishes a bank from other financial firms? Payment Systems Types of Banks: (a) Commercial - Wholesale & Retail (b) BHCs / FHCs (c) Universal Banks Merchant / Investment Banks Agency problems, Relationship / Contract Banking UK: Bank Structure and Regulation Bank balance sheets/ accounting statements Bank Ratios and Bank Valuation Central Banking How central banks interact with commercial banks Investment Banking Asymmetric information and investment banking: buy side versus sell side institutions Institutional investment and investment guarantees Principal-agent problems in investment; active versus passive investment strategies Trading platforms: OTC versus Exchange Trading Brokerage and internalisation Proprietary Trading (a) Investment Banks (b) Hedge Funds Investment Banks IPOs and Bond underwriting: a global business? Financial Innovation and structured products Conduct of business: conflicts of interest at investment banks Page 1 of 4 16 September 2008
IF1002
Banking 1: Commercial & Investment Banking
Market manipulation in cash and derivative markets
Learning Outcomes On successful completion of this module, a student will be expected to be able to: Cognitive/Intellectual Skills Find materials more effectively.
Discuss various aspects of banking.
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 banks play and the services they offer.
Subject Specific Skills Improve essay writing skills.
Develop Case Study skills. Lead discussions and synthesise ideas.
Transferable Skills Communicate more effectively. Develop teamwork skills.
Improve presentation skills. Develop an effective analysis framework.
Values and Attitudes
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IF1002
Banking 1: Commercial & Investment Banking
Understand banking controls ¿ including ethics
Learning and Teaching Methods Lectures, classes
MODULE TEACHING PATTERN Teaching Component Type Contact Hours Total Student Self Learning Directed Study Hours Hours Hours 30 36
Classes
Tutorial
6
Lectures
Lecture
44
220
264
Totals
50
250
300
Module Relationships Pre-requisite Relationships
Co-requisite Relationships
Non-requisite Relationships
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IF1002
Banking 1: Commercial & Investment Banking
Assessment Methods Examination. Coursework: Individual and/or group assessment.
Module Pass Requirements Module Pass Mark 40
In order to pass the module and acquire the associated credit, a student must normally achieve an aggregate mark of no less than 40% and pass or be exempted from all assessment components which have a pass mark. A student who fails [one or more components] at first attempt may nonetheless pass the module if the student's performance in other components justifies this. Specifically, the student must in this case achieve an aggregate mark of no less than 40% and a mark of no less than 40% (coursework) or 35% (examinations) in each component which has a minimum requirement mark.
Module Assessment Assessment Component Coursework 1 Coursework 2 Exam - 3 hours Assessment Type Coursework Coursework Exam (Unseen) Weighting 10 10 80
Minimum Qualifying Mark Pass/Fail 40 40 35 No No No
Indicative Reading List Casu, B. Giradone, C and P. Molyneux (2006), Introduction to Banking, Prentice Hall. Frost, S. (2003) The Banking Analyst Handbook. Heffernan, SA (2005) Modern Banking, Wiley. Howells, PGA & K.Bain, Financial Markets and Institutions.
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