ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title ECONOMICS OF BANKING
Code ECON323
Coordinator Dr R Forster
Economics
Robert.Forster@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 6 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ECON223 MACROECONOMICS I; ECON212 ECONOMETRICS 1; ECON213 ECONOMETRICS 2; ECON224 MACROECONOMICS II 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours   6

      12

12

6

36
Timetable (if known)   60 mins X 1 totaling 6
 
      120 mins X 1 totaling 24
60 mins X 1 totaling 12
60 mins X 1 totaling 12
 
 
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Midterm Exam Type: Online written exam Duration: 24 hours Weighting: 20% Reassessment Opportunity: Yes  24 hours    20       
Assessment 2: Written Unseen Examination Type: Online written exam Duration: 2 hours (with 30 minutes additional admin time) Weighting: 80% Reassessment Opportunity: Yes Final Assessment: Yes  2 hours    80       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

The aim of this module is to provide students with an understanding of the economic principles of banking; the nature of the bank, its role in the economy, and the regulatory environment in which it operates.


Learning Outcomes

(LO1) Students will develop knowledge of the main economic theories about international bank behaviour, bank regulation, banking crises and the role of banks in the economy (including in the transmission mechanism of monetary policy)

(LO2) Students will develop critical knowledge of institutional and historical factors related to the banking system

(LO3) Students will be able to analyse how banks should adapt to shifting circumstances and how they are affected by banking regulations

(LO4) Students will be able to analyse how monetary policy and bank behaviour interact to affect aggregate demand and the risks affecting banks and the international banking system as a whole

(LO5) Students will be able to read and interpret financial press and journal articles that make use of the concepts and methods that are introduced in the module.

(S1) Problem solving skills

(S2) Numeracy

(S3) Commercial Awareness

(S4) Communication Skills

(S5) IT Skills

(S6) International Awareness

(S7) Lifelong Learning Skills

(S8) Ethical Awareness

(S9) Organised and able to work under pressure


Teaching and Learning Strategies

Teaching Method: Online Asynchronous Learning Materials
Description: Pre-recorded sessions with material approximately equivalent to 12 traditional lectures The recordings provide a core framework of theory, analysis and facts about the banking system.
Unscheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Large Group Teaching
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

Teaching Method: Seminar
Description: The seminar programme supports this by providing focus for private study around the seminar tasks, including review of lecture materials and an opportunity for students to raise areas where they are having difficulty.
Scheduled Directed Student Hours:6
Attendance Recorded: Yes

Teaching Method: Group Study
Description: Bi-weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Sc heduled Student Hours: 6
Attendance Recorded: No

Self Directed Learning Hours: 114
Description: The formal contact hours are supplemented by directed reading and consultation with the module leader in office hours or by appointment.

Skills Mapping

Skills / attributes: Ethical awareness
How this is developed: Taught: Understanding the effect of misaligned incentives, externalities and the role of regulation. The trade-off between growth and stability.
Mode of assessment (if applicable): Examination

Skills / attributes: Lifelong learning skills
How this is developed: Ability to critically appraise the work of others
Mode of assessment (if applicable):

Skills / attributes: International awareness
How this is developed: Taught
Mode of assessment (if applicable): Examination

Skills / attributes: IT skills
How this is developed: Accessing course materials and assessments via Vital
Mode of assessment (if applica ble):

Skills / attributes: Communication skills
How this is developed: Seminars will be discussion focussed
Mode of assessment (if applicable):

Skills / attributes: Commercial awareness
How this is developed: Taught: The role of banks in the economy and in society
Mode of assessment (if applicable): Examination

Skills / attributes: Numeracy
How this is developed: Taught: Half of the material taught will require the use of analytical/numerical skills
Mode of assessment (if applicable): Examination

Skills / attributes: Problem solving skills
How this is developed: Taught
Mode of assessment (if applicable): Examination

Skills / attributes: Teamwork
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Organised and able to work under pressure
How this is developed:
Mode of assessment (if applicable):


Syllabus

 

The module covers the following topics:
1) What distinguishes banks from other firms?
2) What determines their behaviour when they set interest rates and extend loans?
3) What is their role in the economy?
4) Why is banking subject to a long list of specific regulations?
5) How is monetary policy transmitted through the banking system?
6) Why do banking crises occur and what are their consequences for the macroeconomy?
The module covers both analytical and descriptive topics, and both microeconomic and macroeconomic issues. It has points of connection to modules on industrial organization, finance and monetary policy.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.