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Unit information: Banking Regulation and Financial Stability in 2021/22

Unit name Banking Regulation and Financial Stability
Unit code EFIMM0053
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Danisewicz
Open unit status Not open



Specifically for students studying on the MSc in Economics and Finance - if taking this unit, you can not take:

EFIMM0006 - Banking OR

EFIMM0054 - Principles of Financial Intermediation OR

EFIMM0052 - Banking Management and Risk Management

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description including Unit Aims

This module starts with an introduction to banking crises, and discusses how central banks address financial stability considerations. Subsequently, the module discusses the role of monetary policy for bank risk taking, and how financial stability affects the real economy. The following themes are also covered: measurement of systemic risk; contagion in interbank markets; macroprudential regulation; bank bailouts; and stress testing financial systems. Students of this module will obtain a comprehensive overview of the role of regulation and supervision in banking.

Intended Learning Outcomes

On completion of this unit students should be able to:

  1. Demonstrate an understanding of key topics in the empirical banking literature focused on financial regulation and stability;
  2. Demonstrate knowledge of the importance of financial stability considerations both from a micro-, as well as from a macroeconomic perspective;
  3. Comprehend and analyze sources of instabilities in the financial system and evaluate their effect on other agents in the financial system.
  4. Explain the importance of financial stability considerations in central banks;
  5. Gauge the extent to which regulation and supervision affect commercial banks’ conduct, and, ultimately, the real economy;
  6. Analyse and interpret central bank statements concerning financial stability;
  7. Appropriately use microeconometric techniques to answer research questions in banking.

Teaching Information

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Information

This unit will be assessed by group coursework 30%, individual coursework 60% and tests 10%


If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. EFIMM0053).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the Faculty workload statement relating to this unit for more information.

The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. If you have self-certificated your absence from an assessment, you will normally be required to complete it the next time it runs (this is usually in the next assessment period).
The Board of Examiners will take into account any extenuating circumstances and operates within the Regulations and Code of Practice for Taught Programmes.