Form C4
Heriot-Watt University - Course Descriptor
1. Course
Code
C20IE
5. School
Management and Languages
7. Delivery:
Location &
Semester
Edin
SBC
Orkney
Dubai
IDL
Collaborative Partner
Approved Learning Partner
Sem 1
Sem…….
Sem………..
Sem……..
Sem….
Name…………………….....Sem..…...
Name …………………………………Sem………..
8. Pre-requisites
2. Course
Title
Financial Intermediation
3. SCQF
Level
6. Course
Co-ordinator
10
4. Credits
15
R. Mochrie
Intermediate Economics 1: Theory and Techniques
9. Linked Courses
(specify if synoptic)
10. Excluded Courses
11. Replacement Courses
Code:
Date Of Replacement:
13. The course may be
delivered to:
UG only
PG only
C20ME
1st Sept 2013
UG & PG
12. Degrees for which
this is a core course
None
14. Available as an Elective?
Yes
No
15. Aims
To introduce students to the reasons found in economic theory for possible market failures in banking, and the arguments for regulation.
To appraise these arguments using research into the causes of bank failures
16. Syllabus
The role of banking in the economy; managing liquidity; insurance and consumption smoothing; optimal financial contracts; links to finance; the limited role of the interest
rate as a price; adverse selection; the mechanisms of signalling and screening; bank runs and the desirability of regulation; maturity matching; the role of deposit insurance;
(double) moral hazard; free banking; justification for regulation, changes in regulation resulting from crises
17. Learning Outcomes (HWU Core Skills: Employability and Professional Career Readiness)
Subject Mastery
Personal Abilities
Understanding, Knowledge and Cognitive Skills
Scholarship, Enquiry and Research (Research-Informed Learning)
Ability to find equilibrium in models of optimal choice in the presence of imperfect information and the costs that it imposes on individual agents and
the economy; understanding of the role of adverse selection and moral hazard in economic theories.
Understanding of the theoretical arguments for regulation of banking, and the difficulties of implementation
Awareness of the key contributions to the literature, and the impact of crises on its development
Industrial, Commercial & Professional Practice Autonomy, Accountability & Working with Others Communication, Numeracy & ICT
Understanding of the role of banks within the economy and the problems of regulation
Ability to present complex information in a form understandable by peers
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Form C4
Heriot-Watt University - Course Descriptor
18. Assessment Methods
Method
19. Re-assessment Methods
Duration of Exam
Weighting (%)
Synoptic courses?
Method
(if applicable)
Coursework
Examination
20. Date and Version
Date of Proposal
March, 2013
2 hrs
Duration of Exam
Diet(s)
(if applicable)
40
60
Date of Approval by
School Committee
No
Examination
Date of
Implementation
2 hrs
Version
Number
2/2
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