Bangor University

Transfer Abroad Undergraduate Programme

Module Implementation Plan

MODULE: ACE- 102 Introduction to Banking and Finance LECTURER: Guy Hargreaves

INTAKE: 2013 SEMESTER: 3

ACTIVITY TYPES: Lecture, presentation, quiz, exam, workshop

Start Date: May 04, 2015

End Date: May 22, 2015

Module
Year Semester Academic weeks Module Name Credits Lecture hrs/week Tutorial Hrs/week Weeks
Code

Week 9~ 11 Introduction to Banking and Mon-Fri Mon-Fri

II Spring
2015/05/04~2015/05/22
ACE- 102 Finance
10 0830-1130
3
1430-1530

Course Detail:
The course aims to offer insights into the nature of the financial instruments, financial markets and financial intermediaries, with particular focus on the banking
business.

Learning Outcomes:
On completing the module, students are expected to be able to:
 Understand the role of financial markets and financial intermediaries;
 Understand the importance of regulation in the financial sector;
 Develop a sound understanding of the banking business;
 Understand the crucial role of central banks in the financial sector.

Assessment
 2-hour written examination (100%).
 Assessment Types Value Date

Class Participation
Attendance
Quiz I
Quiz II
Individual Paper Assignment
Group Paper
Final Exam 100% Friday 22nd May

Paper Assignment
N/A

Week Activity Scheduled Activity Details Core Reading + Learning Outcomes Student
Type Contact Additional Reading + Preparation
Hours Practice Material for Tutorial

Week 01
Monday Lecture 3 hr Overview of financial intermediation  Casu, Girondone &  Understand the fundamental principles of Materials
May 04 and the global financial system Molyneux: financial intermediation posted on
Chapter 1, 3  Explain “financial claims” and distinguish internet
between marketable and non-marketable
Tutorial 1hr  Q&A from today’s lecture financial claims
 Identify various financial markets, and
banking and non-banking financial
intermediaries
 Distinguish between deposit-taking and
non-deposit-taking financial intermediaries
 Understand banking versus shadow banking
markets
 Explain the functions and characteristics of
money and monetary bases
 Explain the importance of market liquidity
to the operation of the global economy
 Tuesday Lecture 3 hr The role of banks in the global  Casu, Girondone &  Understand the role of maturity Materials
May 05 financial system Molyneux: Chapters transformation, aggregation and risk posted on
2, 3, 4 transformation internet
 Understand the credit creation multiplier
Tutorial 1hr  Q&A from today’s lecture  Understand the importance of the payment
system and how it operates
 Describe the main products and services
offered by banks
 Understand the structure and customer base
of the global banking industry
 Position the banking industry within the
global financial system
Wednesday Lecture 3 hr Introduction to financial market  Understand concepts of market liquidity and Materials
May 06 instruments product fungibility posted on
 List the major instruments traded in global internet
Tutorial 1hr  Q&A from today’s lecture financial markets
 Understand some of the broad trends that
have led to today’s financial instruments

Thursday Lecture 3 hr Financial market pricing and market  Describe the term structure of interest rates Materials
May 07 efficiency  Understand risk based pricing theory posted on
 Understand generic bond and discount internet
instrument valuation models
Tutorial 1hr  Q&A from today’s lecture  Understand FX and forward rate pricing
 Understand the concepts of market
efficiency and arbitrage
Friday Lecture 3 hr Central Banks, monetary policy and  Casu, Girondone &  Understand Central Bank roles and goals in Materials
May 08 the lender of last resort Molyneux: Chapters monetary policy setting posted on
5, 6  Understand Central Bank roles in internet
Tutorial 1hr  Review of Week One supervision
 Q&A from today’s lecture  Describe the relationship between Central
Banks and the banks they regulate
 Describe lender of last resort
Week 02
Monday Lecture 3 hr The business of banking  Understand how banks generate financial Materials
May 11 returns posted on
 Describe the key metrics used in bank internet
financial management
Tutorial 1hr  Q&A from today’s lecture  Appreciate the advantages of economies of
scale and diversification
 Understand the problems of asymmetric
information, adverse selection and moral
hazard

Tuesday Lecture 3 hr Bank balance sheet risk management  Casu, Girondone &  Appreciate the key risks assocciated with Materials
May 12 Molyneux: Chapters banking operations posted on
8, 9, 10, 11  Understand the tools used to manage the internet
various balance sheet risks
Tutorial 1hr  Q&A from today’s lecture  Discuss pros and cons of existing and new
regulations around balance sheet risk
management
Wednesday Lecture 3 hr Derivatives and off-balance sheet  Appreciate the history of OTC and Materials
May 13 instruments exchange traded derivatives markets posted on
 Describe some of the different types of de- internet
rivative instruments, such as futures, op-
Tutorial 1hr  Q&A from today’s lecture tions and swaps
 Distinguish between speculation, hedging
and arbitrage
 Understand counterparty risk and ways to
manage this risk
 Understand other bank OBS instruements
such as LC and bank guarantees
Thursday Lecture 3 hr Money, foreign exchange and capital  Explain the role and nature of money, Materials
May 14 markets foreign exchange and capital markets posted on
 Identify different instruments traded in these internet
markets and describe their characteristics
Tutorial 1hr  Q&A from today’s lecture  Appreciate the fundamentals of the foreign
exchange market
 Understand capital market product
lifecycles

Friday Lecture 3 hr The securitisation business  Understand the basic principles of Materials
May 15 securitisation and the securitisation product posted on
lifecycle internet
 Appreciate the benefits of strong
Tutorial 1hr  Review of Week Two securitisation markets
 Q&A from today’s lecture  Describe the similarities between
securitisation and bank capital structure
 Understand the role securitisation played in
the 2007-9 Global Financial Crisis (GFC)
 Appreciate the current state of securitisation
markets
Week 03
Monday Lecture 3 hr Financial crises and the real  Describe the typical causes and effects of Materials
May 18 economy financial crises throughout history posted on
 Understanding of the causes and effects of internet
the 2007-9 GFC
Tutorial 1hr  Q&A from today’s lecture  Appreciate the flow through impacts of
financial crises on the real economy
Tuesday Lecture 3 hr Regulation and developments in the  Understand Glass-Steagall and its role in Materials
May 19 financial sector financial stability posted on
 Appreciate the need for consistent financial internet
market regulation
Tutorial 1hr  Q&A from today’s lecture  Understand developments in international
bank capital standards developed under the
framework of Basle I, II and III
 Understand Dodd-Frank and associated post
2007-9 GFC regulatory developments

Wednesday Lecture 3 hr The future of banking and money  Appreciate the origins and history of money Materials
May 20 and developments in digital currency and posted on
payments systems internet
 Understand present consolidation trends in
Tutorial 1hr  Q&A from today’s lecture banking industry globally
 Appreciate and able to reason through
various future banking industry scenarios
 Appreciate the role digital disruption might
have on global banking and financial
markets
Thursday Lecture 3 hr Full course revision and review of
May 21 exam

Tutorial 1hr  Review of full course

Friday
Final Exam
May 22