module specification

The module examines the theoretical and applied aspects of the role and functioning of domestic and international commercial and investment banks. Relevant theories, models and empirical evidence are used in the analysis of banking operations and strategies across the globe.

This module aims to develop:

1.  awareness, understanding and appreciation of the theoretical and applied aspects of the role of commercial and investment banks in the financial system.

2.  a reflective approach to the analysis of structures, strategies, current issues, activities and research relating to commercial and investment banking.

3. academic skills including academic reading and writing, oral communication, team working, analysis, critical thinking and research.

4. preparedness for the intellectual, analytical and interpersonal challenges of management and leadership positions in commercial and investment banks.

Note: If there are not sufficient student numbers to make a module viable, the School reserves the right to cancel such a module. If the School cancels a module it will use its reasonable endeavours to provide a suitable alternative.

N/A

The theoretical and applied aspects of the role and functioning of domestic and international commercial and investment banks in the financial system. (LO1)

The theory of the banking firm; models of banking behaviour. (LO2)

Commercial and investment banking structures, operations, products and strategies; bank risk measurement and management including the identification, management and mitigation of interest rate, foreign exchange rate, operational and credit risk; financial innovation and structured products. (LO2, LO3)

Bank performance: profitability and efficiency. (LO3)

Comparison of commercial and investment banking across broad regions of the globe. (LO3)

Determinants of bank failure: prediction methods and case studies. (LO3)

Current issues, developments, research and empirical evidence in relation to commercial and investment banking. (LO3)

Forms of commercial and investment banking products and activities including of digital finance and fintech. (LO3)

This module will explore the theoretical and practical aspects of commercial and investment banking operations and strategies, and provide a supportive learning environment to students for developing generic academic and employability skills.

Delivery will be based on a mix of lectures and seminar activities. The lectures will deliver the core academic and theoretical content. These will be supported by the seminar classes which will use case study and other approaches to develop student knowledge understanding.  

There will be a lecture each week supported by directed reading and other media such as videos. Interactive teaching approaches will be adopted and students will be encouraged to participate in small group exercises during the class. Student contributions within lectures will be encouraged.

Invited external speakers from commercial/investment banks will provide industry exposure as well as insight into employability requirements and career opportunities. 

The attention of students will be invited to the one-to-one advice and guidance sessions and careers workshops and events offered by the University’s Careers team who will also be invited to a lecture session in order to offer students a brief overview of career opportunities and strategies.

During the seminar activities a variety of teaching tools including group activities, presentations, discussion and quizzes will be adopted. Students will be required to prepare materials for the seminars based on the lecture themes of the previous weeks. The seminars will develop student confidence in the subject discipline and generic skills such as team working, oral communication, numeracy, IT and analytical skills. 

A few seminars will be held in the Bloomberg room involving basic training in the use of Bloomberg for developing insights into the operations of commercial and investment banks.  Seminars will also facilitate development of Excel / spreadsheet / numeric skills in relation to relevant module topics.  

Students will be expected to devote at least twelve or more hours per week undertaking independent reading and study. The University’s virtual learning platform will be used to provide supporting class materials, cited web sources, discussion forums and guidance for independent learning.

Reflection and critical thinking skills will be practiced through periodic reflective exercises.

The module is very relevant to future career opportunities in banks and other financial services organisations in managerial and supervisory capacities.

On successful completion of the module students, will be able to:

1. Demonstrate originality in the application of knowledge, together with a practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge relating to the role of commercial and investment banks.

2. Demonstrate conceptual understanding that enables the critical evaluation of key theories, current research and methodologies relating to the structures and strategies of commercial and investment banking, and the management and mitigation of financial risk arising from commercial and investment banking.

3. Develop theoretical and quantitative knowledge and understanding, and to develop analytical skills to a high level to understand forms of banking products and activities.

Diagnostic and formative assessment will take place on a weekly basis in seminars to develop theoretical, analytical and oral and written communication skills.

In particular, in Week 5, will take place a “peer review” formative assessment, where students will have the opportunity to receive feedback from each other. The first summative assessment (20%) will take place in Week 9. Students will be required to undertake a group research activity culminating in an individually assessed group presentation on a stipulated topic in relation to any selected banks. The presentations should be 20 minutes in duration with approximately equal time allocated for each individual student and will be undertaken during class hours. Students will be required to use theoretical perspectives, models and empirical research evidence to gain insights into banking operations and strategies. This assessment will test the ability to apply theoretical principles to real-life case studies, evaluate students’ knowledge and understanding of the themes developed in the module, and will assess research, reflection, criticality and written communication skills. Presentation slides should be submitted before the presentation.

The second summative assessment (80%) will take place in Week 12 and will require students to write an individual report (minimum 1,500 words; maximum 1,700 words) in order to assess student’s knowledge and understanding of the module content and evaluate written communication.

Reading List Talis Link:

https://bblearn.londonmet.ac.uk/webapps/blackboard/content/launchLink.jsp?course_id=_41917_1&tool_id=_2924_1&tool_type=TOOL&mode=cpview&mode=reset

Core Texts

Casu, B., Girardone, C. and Molyneux P., (2015) ‘Introduction to Banking’ Pearson Education [E-Resource available from the library].

Heffernan, S. (2005) ‘Modern Banking’, John Wiley & Sons.

Rosenbaum, J and Pearl, J. (2013) ‘Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions, with data and Analytics from Bloomberg’ 2nd Ed., John Wiley and Sons Inc, New Jersey.

Other Texts

Bessis, J (2015) 'Risk Management in Banking' 4th, John Wiley & Sons Ltd, Chichester.

Liaw, K. T. (2012) ‘The Business of Investment Banking: A Comprehensive Overview’ 3rd

Ed., John Wiley & Sons Inc. New Jersey.

Lee, N. and Lee V. J. (2018) ‘Bank Lending: Principles and Practice’ Gosbrook Professional Publishing Ltd, Reading.

Saunders, A and Cornett, M. M. (2011), ‘Financial Institutions Management: A Risk Management Approach’, McGraw-Hill, 7th Edition.

Scott-Quinn, B. (2012) ‘Commercial and Investment Banking and the International Credit and Capital Markets’ Palgrave Macmillan, Basingstoke.

Academic Journal Articles (accessible electronically)

Llewellyn, D. T. (1999) ‘The new Economics of Banking’ Société Universitaire Européenne de Recherches Financières (SUERF) Amsterdam.

Llewellyn, D. T. (2008) ‘The Northern Rock crisis: a multi-dimensional problem waiting to happen’ Journal of Financial Regulation and Compliance 16, 1 35 – 58.

Puri, M. (1996) ‘Commercial banks in investment banking conflict of interest or certification role?’ Journal of Financial Economics, Volume 40, Issue 3, March 1996, Pages 373-401.

Scott, J. (2000) ‘Drexel Burnham Lambert: A Ten-Year Retrospective’ Austrian Scholar’s Conference, Auburn University, March 23-24, 2000.

http://www.mises.org/journals/scholar/drexel.PDF

Professional Journal Articles

Capie, F. (2019) ‘Stable and varied banking sector stands test of time’ Financial World,

February/March 2019 pp27-28.

Bloomberg: https://vimeo.com/133348600