MSc Finance (Banking)

This module provides students with fundamental knowledge in principles of international corporate finance and asset pricing to understand and analyse the major issues affecting the financial policies of corporation in capital markets. This course is concerned with the decisions that firms make about financing their investment in a global economic environment. You will study the principles underlying such decision-making, their application and debates over them in relation to the modern literature to develop analytical skills in a challenging global environment, and other complex specialised contexts.

The module examines corporate and investment banking from the point of view of companies that require financial support, and from the perspective of the banks that provide financial solutions. In this way you will develop a broader understanding of how corporate and investment banks operate, the factors that drive the demand for their services, how banks respond to the needs of clients, and how banks develop and maintain their competitiveness.

This module examines the principles and practice of portfolio management, from the perspective of the individual investor, and the professional fund manager employed by an institutional investor, such as a mutual fund, pension fund, or hedge fund. Over a period of decades there has been rapid and far-reaching change in the investments industry. Deregulation and financial liberalisation, and developments in information and communications technology, have contributed to a massive expansion of financial markets and the development of new trading strategies. The downside of these developments was a financial crisis in the late 2000s of a magnitude not seen previously since the 1920s and 1930s. Several of the causes of this crisis can be traced directly to innovations in security design, trading strategies fuelled by leverage, a lack of transparency, and a widespread attitude of complacency towards risk among investors, financial intermediaries, and regulators.

This module has been developed to equip you with the skills and knowledge to manage the financial needs of households. It is intended for professionals and academics, both practicing and aspiring, providing user-friendly technical tools for increased efficiency and effectiveness in your day-to-day professional life. Central to this module are two core issues: what are the financial needs of households (both those raised and those neglected due to financial illiteracy or behavioural biases)?; and, how could a bank meet these financial needs, and why is it in its interests to do so?

This module examines the role and importance of bank financial management to the modern bank. It teaches the basic models of financial management taught by University Economics Departments and Business Schools, which were constructed from the experience of mature capitalist economies. The module discusses the various trends shaping banking markets, such as institutionalisation, securitisation, globalisation and concentration.

Welcome to this module on Risk Management: Principles and Applications. This module has four main aims, to: illustrate the main types of risk; present the most important ideas and methods used in the analysis of portfolios of financial securities, including stocks and bonds; explain how rational investors can use financial derivatives (mainly, futures and options) in order to alter the risk of their investment position; and illustrate some more specialised risk management techniques, such as Value at Risk and Credit Risk. The emphasis throughout is on the general principles behind the investment decisions, rather than on case studies or anecdotal evidence. Thus, you will study: the main features of portfolios, which include stocks and bonds, how to calculate their risk, and how investors can combine their holdings of different securities to reduce their overall risk without sacrificing return. Similarly, when you deal with futures and options, you will explore how these instruments can be used to manage risk and to expand the opportunity set of investors.

This course has been specially designed to increase the depth of your understanding of macroeconomics by focusing on the relationship between financial markets and macroeconomics. We place the subject in a real-world context, aiming to show how theoretical and empirical knowledge of macroeconomics and financial markets provides ways to analyse the salient problems faced by modern macroeconomic policy makers.

It is widely recognised by academic economists and policymakers that developed and efficient banking and capital markets are an important prerequisite for economic growth. However, it is also recognised that banking and financial crises can cause abrupt slowdowns or reversals of growth. The drive to understand these phenomena has generated a large body of research, leading to new theories and empirical studies of key features of banking and capital markets. This literature provides the underpinning for the subject material of this module.

The emergence of an open, liberal international financial order has been one of most notable developments in the global economy in the last 20 years. The growth of a more open international economy since the Second World War produced an international environment in which markets have bypassed national regulations, and financial flows have seriously questioned the Keynesian demand management policies. The study of trade and production cannot, therefore, satisfactorily explain the behaviour of the international economy; finance and the institutions through which it flows should also be examined. In a world where consumption, production and investment are globalised, international finance has become an integral part of any serious academic study of international economics.

The main objective of this module is to study the economists' perspective on international finance, which is a policy-oriented perspective. The examination of the institutions of international finance and the key policy problems that have arisen in recent decades are the main concern of this module. In other words, it is the perspective that an economist would use when advising governments on how to work within the modern international financial system and how to overcome its problems.

This module provides an introduction to econometric methods. In brief, the module examines how we can start from relationships suggested by financial and economic theory, formulate those relationships in mathematical and statistical models, estimate those models using sample data, and make statements based on the parameters of the estimated models. The module examines the assumptions that are necessary for the estimators to have desirable properties, and the assumptions necessary for us to make statistical inference based on the estimated models. In addition, the module explores what happens when these assumptions are not satisfied, and what we can do in these circumstances. The module concludes with an examination of model selection.

The purpose of this module is to broaden your knowledge and extend your understanding of econometrics. In doing this, you will work with data. The first two units extend your knowledge of single equation methods. Unit 1 considers how to make progress with dummy – that is, qualitative – regressors. Unit 2 introduces dynamic models by showing how lags and expectations can be incorporated. The following three units focus on models that consist of two or more equations – simultaneous equation models. The nature of such systems is explained and their identification and estimation discussed. The analysis of dynamic models is extended in Unit 6, where the time series properties of variables are discussed. By understanding the time series properties of variables, you will be able to specify dynamic econometric models that capture both short-run and long-run effects. These are discussed in Unit 7. The final unit, Unit 8, focuses on forecasting with both econometric and time series models.

The starting point for understanding any financial market is that, on a large scale, firms and governments have to turn to institutions (such as banks) and markets (such as bond markets) to finance their core operations. Even if a government or firm currently has no need to borrow or obtain new capital funds, it operates on financial markets to manage its old financial liabilities (such as its outstanding bonds which are traded on markets) or to invest currently surplus funds. At the same time, banks and other financial institutions essentially operate on financial markets as their main business activity. The fundamental fact underlying this module is that such large players’ financial operations take place on financial markets that are international in character.

You will study a variety of theories throughout the module, which seek to explain the ways in which finance is handled internationally. One question we want you to keep in mind throughout your study of is: ‘Is the theory true?’ Whatever your answer, your next step should be to consider the related, but different question ‘Is the theory useful?’

This module introduces the basic concepts of corporate governance and theory of the firm. It is specially designed for the undergraduate study of such areas as management, finance, financial law, corporate law, economics and related subjects. The course is designed to increase the depth of your understanding of corporate governance issues. As corporate governance is a multi-disciplinary subject – covering such topics as law, politics, management, finance, and economics - the course outlines the key theoretical and practical issues underpinning the study of corporate governance, and how they affect the governance of the modern corporation. International comparisons and differences in corporate governance are emphasised throughout the course.

Research plays an essential role in business and in public policy and management. Increasingly, organisations undertake small-scale research projects, to find out about matters relating to the concerns of their organisation or to critically evaluate existing policies. Both commercial firms and government institutions rely upon research to inform their decisions, to test the effectiveness of existing policies, to predict the effects of intended future policies, to understand management processes and decisions and to gain insights into public preferences and opinions about public services.

Whether you are studying this module in order to carry out research in your professional role, to commission and project-manage research conducted by others or to complete a dissertation for your MSc qualification, your ability to appropriately and rigorously design, execute report, and evaluate research is essential.

The dissertation is a supervised piece of research on a topic that we will agree with you. The length will be 10,000 words. Before we can consider a proposal to submit a dissertation we will need to review your academic performance so far. Students wishing to take the Dissertation should ideally do so in their second or third year of study.

The module has been designed to introduce you to some of the key concepts, principles and practices in modern banking regulation and the resolution of modern banking crises. The literature on these subjects is vast so, in approaching the material, we will focus on a selection of key issues of relevance to the topic.

This module will introduce the main econometric methods and techniques used in the analysis of issues related to finance. The first objective of this module is to introduce the main econometric methods and techniques used in the analysis of issues related to finance. A module with the title Financial Econometrics assumes that such a field exists.

In this module, we define financial econometrics as ‘the application of statistical techniques to problems in finance’. Although econometrics is often associated with analysing economics problems such as economic growth, consumption and investment, the applications in the areas of finance have grown rapidly in the last few decades.

This module introduces concepts and tools for valuing companies in a consistent manner. You should find it useful as a starting point and guide for analysing the performance of companies and industries of your interest, and for interpreting and assessing valuations.

The module should be useful for practitioners working in various market environments – from developed countries to emerging markets, from services to manufacturing industries, and from the viewpoints of managers to the desks of stock analysts.

Welcome to the Banking Strategy module. The world of banking has changed considerably in recent years, particularly since the crisis of 2007–09. This module aims to give you a good understanding of the characteristics of the financial system and the role of intermediation, as well as the implications of recent structural changes for bank management and external corporate control. You will learn about banks’ sources of funding and how the environment after the 2007–09 crisis transformed their funding choices.

The module also aims to provide an analysis of the factors that can contribute to success or failure in the execution of banks’ mergers and acquisitions (M&A) transactions, and the cultural challenges that may be crucial to the success of an M&A deal involving banks. We hope that your study of the module will enable you to evaluate the business strategy and implementation failings that have given rise to bank failure and to assess the benefits and costs from regulation of the financial services industry, and the net regulatory burden faced by the banking industry.

The module provides an introduction to the analysis of derivatives in financial markets. You will learn the main features of the most commonly used financial derivatives, and you will understand how to use them for the management of risk. These units explain and discuss the theoretical models that are used to analyse derivatives, and you will also see how derivatives are used in practice. You will study spreadsheet models of derivatives, analysing the performance and valuation of derivatives contracts and trading strategies, starting with the simplest options, and extending to more complex strategies and derivatives contracts. These spreadsheet models will help you to develop a deeper and stronger understanding of derivatives and how they work.

This module focuses on the conceptual and analytical aspects of derivatives. After studying this module, you will be able to understand the main characteristics of derivatives, the potential for using derivatives to manage risk, and you should be able to avoid some of the more serious misunderstandings and mistakes associated with using derivatives.