Banking and Finance MSc

The module content includes:

• an examination of the theories of the retail bank
• an overview of the sector
• central banking
• bank capital
• analysis of the balance sheet and income statement of banks
• bank data and performance analysis using FRA
• managing liquidity and liabilities
• asset management and the lending decision
• managing the investment function
• the use of loan sales and securitisation

This module covers the context of financial services with a particular focus on the UK, including:

• current regulatory developments, consumer policy initiatives and current market developments and controversies
• a focus on the challenges associated with the marketing of financial services and how the principles and tactics of marketing are employed in financial services markets 
• coverage of the debate surrounding the importance of ethics and professionalism in financial services provision 
• detailed analysis of consumer behaviour and in particular decision making in financial services markets

The module covers:

• investment, capital structure and divident decisions from a shareholder value perspective
• capital market behaviour (background)
• mergers
• real options

This module covers:

• bank data sources
• analysing bank data
• stata – panel data analysis
• bank modelling theory
• estimating asset scale bank economies
• estimating translog and share equations (clustering)

Equity, fixed income and derivative securities will be considered individually and portfolios. These will be presented as extensions of previously studied material as well as new topics.

Among individual security classes topics will be:

• Equities: Mean-variance efficient portfolios, CAPM, dividend discount valuation
• Fixed Income: Basic bond terminology and valuation, interest rate term structure and forward rates, duration, convexity and hedging
• Derivatives: Common options, real options
• Principles of financial derivative valuation and analytic and numerical methods for valuation

This module covers:

• data sources in banking
• analysis of bank accounts and interpretation, dynamic modelling of financial ratios
• estimation of economies of scale and X-efficiency
• empirical estimation of market concentration
• risk management modelling

The module aims to allow you to synthesise, apply and extend the knowledge you have gained in the taught component of the programme. The investigation of a current research topic will help to develop your theoretical and practical understanding of current problems in your area, as well as your research and communication skills.

This module covers:

• a re-examination of bank asset transformation and risk exposure
• measuring and managing credit risk
• measuring and managing liquidity risk
• measuring and managing interest rate risk
• market risk exposure and management
• using bank capital in risk management
• operational and conduct risk
• the use of derivatives in bank risk management

The module covers:

• Introduction and historical overview
• Statistical underpinnings of quantitative risk management
• Measures of financial risk
• Risk measurement in practice: Parametric approaches, non-parametric approaches, Monte Carlo approaches, extreme value approaches
• Liquidity risk
• Backtesting
• Credit risk

This module covers the following:

• International finance and globalisation
• Exchange rates regimes: to float or not to float?
• In search of an international monetary system
• Central banks and monetary policy
• Bank vs. market based economies
• Economics of bond markets and interest rates

This module covers bank regulation, stress tests, digital banking, and current issues.

The module starts with early phase of a typical firm’s life cycle with discussion of the role of venture capital in mentoring and leading them to possible exits including Initial public offerings. These will be followed by an in-depth analysis of financial markets with diversity of financial claims issued by both young and matured companies.

The module will then also explore corporate restructuring and financial decisions leading to analysis of corporate breakup transactions (divestitures, spinoffs, equity carve outs, tracking stocks), leveraged recapitalizations, and leveraged buyouts (LBOs) and study the value-drivers behind them with both theoretical framework and empirical analysis linking current events. It will also discuss factors that determine cross-border takeover, and the influence of cross-border M&As on corporate shareholders' wealth and corporate governance.

Finally topics dealing with corporate social responsibility and its value-enhancing capabilities and the link between corporate political connections (managers, board members, shareholders) and corporate financing activities will be discussed in detail from both theoretical and empirical perspectives.

This module examines:

• exchange rates and FX markets
• FX market efficiency
• real exchange rate and purchasing power parity
• exchange rate determination
• exchange rate forecasting
• FX predictability: Statistical significance and economic value
• FX volatility strategies
• global equity analysis
• global performance evaluation