| Unit name | Introduction to the microeconomic foundations of banking |
|---|---|
| Unit code | EFIMM0051 |
| Credit points | 15 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Dr. Tobias Dieler |
| Open unit status | Not open |
| Pre-requisites |
None |
| Co-requisites |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
The objective of this module is to familiarize students with the banking industry and provide them with the analytical skills to critically assess banking from both a regulator’s perspective and a banker’s perspective. This is achieved by covering the following topics both descriptively and theoretically: How is a bank different from a real firm?; What are the different types of banking?; Which services do banks provide to its customers and to the economy as a whole?; The role of information in banking.; What is the role of central banks?; How can banks be regulated to maximize social welfare?; What is the risk/negative externality of an insolvent bank?
On completion of this unit students should be able to (inter alia): 1.Demonstrate a comprehension of principal features of the banking industry; 2.Demonstrate a critical awareness of the role of banks for different stakeholders and the economy as whole; 3.Critically reflect on and discuss the role of the government, regulation, and government interventions into financial systems; 4.Use the analytical tools provided by information economics to critically assess past and upcoming institutional features in the banking industry.
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
This unit will be assessed by group coursework 40% and exam 60%
The course is based on two textbooks: 1) “Introduction to Banking” (2015) by Casu, Girardone and Molyneux. Pearson. and 2) “Microeconomics of Banking” (2008) by Freixas and Rochet. MIT Press
