Bangor University
Transfer Abroad Undergraduate Programme
Module Implementation Plan
MODULE:
INTAKE:
ACTIVITY TYPES:
ACE-102 Introduction to Banking and Finance
2010
Lecture, presentation, quiz, exam, workshop
LECTURER:
SEMESTER:
3
Start Date: Nov 28, 2011
End Date: Dec 16, 2011
Year
II
Semester
Academic weeks
Fall
Week 13 ~ 15
2011/11/28~2011/12/16
Module
Code
Module Name
Credits
ACE-102
Introduction to Banking
and Finance
10
Lecture hrs/week
11.25 for each session
Mon ~Thu
Session I: 0830~1100
Session II: 1430~1700
Fri
0830~ 0930
1000~ 1100
Tutorial Hrs/week
(Local Tutor)
Weeks
5
3
Course Detail:
The module aims to offer insights into the nature of the financial instruments, financial markets and financial intermediaries, with particular
focus on the banking business.
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


Mid-term assignment, comprising an essay of about 2,500 words (40%);
2-hour written examination (60%).
Assessment
( Variable based on individual module )
Class Participation
Attendance
Quiz I
Quiz II
Individual Assignment
Group Paper
Final Exam
Date
Value
12/12/11
40%
16/12/11
60%
Paper Assignment: An essay of 2,500 words maximum on the following title:
Describe the process of financial intermediation and how the deposit-taking and non-deposit-taking financial intermediaries
facilitate the transfer of liquidity from surplus to deficit units in the economy.
Indicative reading for essay:
Buckle & Thompson: Chap. 2
Casu, Girondone & Molyneux: Chap. 1
Fell: Chap. 2
Goodhart: Chap. 5
Howells & Bain: Chaps. 1, 3, 4.
Piesse, Peasnell & Ward: Chap.3.
Pilbeam, Chaps. 2, 3.
Week
Activity
Type
Scheduled
Contact
Hours
Lecture
2.5hr
Activity Details
Core Reading +
Additional Reading +
Practice Material
Learning Outcomes
Week 01
Monday
Nov 28
Tutorial
1hr
Pilbeam. Chapter 1
Lecture: Introduction to the financial system. Mallon: Unit 1.
Distinguish
between
financial
institutions and financial markets
Self assessment questions (SAQs).
Distinguish between banking and nonbanking financial intermediaries
Discuss the importance of the financial
system in the economy. Discuss the structure
of the system.
Explain diagram of the financial system
structure and financial instruments.
Explain what is meant by and provide
examples of “financial claims”
Distinguish between marketable and
non-marketable financial claims
Student
Preparation
for Tutorial
Distinguish between deposit-taking and
non-deposit-taking
financial
intermediaries
Explain the importance of liquidity in
the markets for the operation of the
economy
Describe the characteristics of the main
financial instruments in the money
markets
Describe the characteristics of the main
financial instruments in the capital
markets
Tuesday
Nov 29
Lecture
2.5hr
Lecture: Financial instruments:
functions and characteristics.
their Pilbeam. Chapters 1 Understand the distinction between Tutorial
& 5.
marketable
and
non-marketable questions
Mallon: Unit 1.
financial instruments.
for unit 1
Self assessment questions (SAQs).
Wednesday
Nov 30
Tutorial
1hr
Lecture
2.5hr
Discuss the important terms in Unit 1:
Financial assets & liabilities; Financial
claims; Surplus & Deficit units..
Tutorial questions in study guide for unit 1
Lecture: The activities of banks.
Understand the distinction between
surplus and deficit units.
Casu, Girondone Understand the structure of modern Tutorial
question
&
Molyneux: banking and banking business.
Describe
the
main
services
offered
by
sheet for
Chapters 2, 3, 4
Tutorial
1hr
Tutorial:
banks.
unit 1
Understand
the
importance
of
the
Mallon:
Cover general and specific questions relating Unit 1 and Unit 5 on payment system
to financial markets and financial commercial
Understand the forces of change in
instruments.
banking and the main trends deriving
banking.
from these.
Appreciate the range of retail banking
Tutorial questions in study guide for unit 1
& 12.
services in the UK
Describe the services provided by the
wholesale banks and the international
banks
Thursday
Dec 01
Lecture
2.5hr
Lecture: Regulation of the financial system.
Self assessment questions (SAQs).
Casu, Girondone
&
Molyneux:
Chapter 7.
Mallon: Unit 2.
Tutorial
1hr
Tutorial:
Cover the credit creation multiplier.
Distinction between traditional and modern
banking; retail and wholesale banking;
corporate and investment banking.
describe
thetheservices
by the
Understand
reasons provided
for regulation
of Tutorial
investment
banks
the financial system.
questions
Explain the objectives of government for unit 1A
intervention.
Describe the types of regulation in the UK
financial sector.
Tutorial questions in study guide for unit 1A
Friday
Dec 02
Lecture
1hr
Revision session: Class exercise.
Tutorial
1hr
Go over the class exercise answers.
Lecture
2.5hr
Week 02
Monday
Dec 05
Lecture: Money and the flow of funds in the Casu, Girondone Appreciate the origins and history of Tutorial
economy.
questions
&
Molyneux: money.
Explain the functions and characteristics for unit 2.
Chapter 5.
Self assessment questions (SAQs).
of money.
Tutorial
Tuesday
Dec 06
1hr
Lecture
2.5hr
Tutorial
1hr
Tutorial questions in study guide for unit 2
Lecture: Financial intermediation.
Self assessment questions (SAQs).
Tutorial: Money and the flow of funds.
Tutorial questions in study guide for unit 3.
Pilbeam, Chap. 4 Understand the circular flow of income,
Mallon: Unit 3.
expenditure and production.
Identify and explain the flow of funds
between sectors.
Casu, Girondone
&
Molyneux:
Chap. 1
Pilbeam, Chaps.
2, 3.
Define and distinguish between surplus Tutorial
and deficit units
questions
Mallon: Unit 4.
Understand the contractual position for Unit 3
involved in financial intermediation
Appreciate the problems and disparate
needs of surplus and deficit units inherent
in direct lending
Explain how these disparate needs are
reconciled by financial intermediation
Understand the processes of maturity
transformation, aggregation and risk
transformation
Appreciate the advantages of economies
of scale and diversification, and
Understand the problems of asymmetric
information, adverse selection and moral
hazard.
Wednesday
Dec 07
Lecture
2.5hr
Lecture: Central Bank.
Casu, Girondone
&
Molyneux:
Chap. 5.
Mallon: Unit 5.
Understand the position and importance of Tutorial
the Bank of England as the Central Bank questions
in the UK financial system
for unit 4
Appreciate how this has changed since
1997.
Tutorial
question Understand the central bank’s role in
sheet for unit 4
controlling the money supply.
Tutorial
1hr
Tutorial: Financial intermediation.
Tutorial question sheet for unit 4
Thursday
Dec 08
Lecture
2.5hr
Lecture: The Money Markets.
Pilbeam, Chap. 5. Explain the role and nature of financial Tutorial
Self assessment questions (SAQs).
Mallon: Unit 6.
markets in general
question
Understand what is meant by market sheet for
unit 5.
efficiency
Understand the role of the money market
Tutorial
1hr
Tutorial: Central Bank.
Tutorial questions in study guide for unit 5.
Friday
Dec 09
Lecture
1hr
Revision session Q & A
Tutorial
1hr
Tutorial The money markets (1)
Identify different instruments traded in the
money market and describe their
characteristics
Calculate the yields on various money
market instruments.
Tutorial
questions
for unit 6
Tutorial questions in study guide for unit 6.
Week 03
Monday
Dec 12
Lecture
2.5hr
Lecture: The Capital markets.
Self assessment questions (SAQs).
Tutorial
1hr
Tutorial: The money markets (2)
Tutorial questions in study guide for unit 6.
Pilbeam, Chaps. Understand the difference between bonds
and equities
6 & 9.
Mallon: Unit 7 Distinguish between different types of
long-term debt capital and risk capital
and 8.
Calculate the yields on various capital
market securities
Understand the presentation of relevant
data on stocks and shares in the financial
press.
Tutorial
question
sheet for
unit 6
Tuesday
Dec 13
Lecture
2.5hr
The derivatives market.
Pilbeam,
13.
Self assessment questions (SAQs).
Chap. Distinguish between speculation, hedging Tutorial
and arbitrage
questions
Describe some of the different types of for unit 7.
Mallon: Unit 9.
Tutorial
1hr
Tutorial: The capital markets (1)
derivative instruments, such as futures,
options and swaps
Tutorial question sheet for unit 7.
Explain how, and on which markets,
derivatives are traded
Understand
the
risk
and
characteristics of derivatives
Wednesday
Dec 14
Lecture
2.5hr
The foreign exchange market.
Pilbeam,
11.
Self assessment questions (SAQs).
return
Chap. Describe the structure and operation of the Tutorial
Mallon: Unit 10.
foreign exchange market
questions
Understand the press representations of for unit 7.
the forex market
Understand the determinants of exchange
rates
Understand basic risk in relation to
exchange rates
Tutorial
1hr
The capital markets (2).
Tutorial question sheet for unit 7.
Thursday
Dec 15
Lecture
1hr
Revision.
Tutorial
1hr
Tutorial: Basic coverage of Derivatives and
Foreign exchange.
These are relatively short units and will Tutorial
be covered partly in the revision time questions
and partly in tutorial time.
for units 8,
9 and 10.
Tutorial question sheet for unit 8, 9 and 10.
Friday
Dec 16
Final Exam