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Unit information: Principles of Financial Intermediation in 2021/22

Unit name Principles of Financial Intermediation
Unit code EFIMM0054
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Professor. Klaus Schaeck
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

EFIMM0053 - Banking Regulation and Financial Stability 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 covers 10 key themes in banking. It is based on seminal academic papers written on why banks exist, how banks create liquidity, the role of banks for economic growth, bank-borrower interaction, relationship lending, loan pricing, the role of international banking, industrial organization of banking systems, how regulation affects bank behaviour, and how bailouts affect structure and performance of banks and banking markets. The module illustrates the use of applied microeconometric techniques in the context of banking and therefore also benefits students in the choice and development of their dissertation topic.

Intended Learning Outcomes

On completion of this unit students should be able to:

  1. Demonstrate a comprehension of key topics in the empirical banking literature;
  2. Demonstrate a critical awareness of the crucial role of banks for the economy;
  3. Describe and critically evaluate the interaction of a bank with borrowers and analyse the effect on loan pricing;
  4. Critically reflect on and discuss the role of the government, regulation, and government interventions into financial systems;
  5. Demonstrate the ability to appropriately deploy microeconometric techniques to answer research questions in banking;
  6. Critically evaluate and appraise current and future directions for research in banking.
  7. Demonstrate a comprehension of the economic thinking required and the methodological skills necessary for furnishing dissertations on research projects 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% and exam 70%


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. EFIMM0054).

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.