2019/20 Undergraduate Module Catalogue

LUBS2265 Commercial Banking

10 creditsClass Size: 30

Module manager: Felix Irresberger
Email: F.Irresberger@leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2019/20

Pre-requisites

LUBS2260

Banks and Banking Systems

This module is not approved as a discovery module

Module summary

This module focuses on key theoretical and practical issues in the management of commercial banks. After an overview of the role and functions of commercial banks in the financial system, the module will examine the key business policies and strategies undertaken by these banks.A particular emphasis will be placed on analysing the key principles of lending activities and the related impact of asset securitization. The module also provides a critical analysis of the specificities of bank governance.

Objectives

The module Commercial Banking aims to develop students' knowledge and understanding of the key theoretical and practical issues in commercial banking. The module provides students with a thorough grounding in a range of commonly employed numerical tools, strategies and techniques in the day-to-day management of commercial banks.

By the end of the module the student will be able to describe and evaluate the main activities of commercial banks, recognise common problems and apply appropriate qualitative and quantitative tools to attempt to solve them. More specifically, the module will introduce students to the role of commercial banks in modern financial systems, core functions of commercial banks, principles of bank lending policy and funding strategies, the role of bank capital, principles of bank performance evaluation and bank governance.

Learning outcomes
After completing this module students will be able to:
- Describe and evaluate the theoretical principles of the role of commercial banks in modern financial systems.
- Explain the core functions and activities of commercial banks.
- Explain and critically evaluate the key principles of bank lending policy and funding strategies.
- Explain the role of capital in bank management.
- Explain and critically assess the basic principles of bank performance evaluation.
- Critically evaluate the principles of bank governance.

Syllabus

1. The functions of commercial banks
2. Lending policy
3. Relationship banking: theory and practice
4. Off-balance sheet activities in commercial banking
5. Asset securitization
6. The funding structure and the role of deposits
7. The role of bank capital in bank management
8. The interplay between capital regulation and deposit insurance
9. The evaluation of bank performance
10. Bank governance

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	11	1.50	16.50
Seminar	8	1.00	8.00
Private study hours			75.50
Total Contact hours			24.50
Total hours (100hr per 10 credits)			100.00

Private study

Students are required to undertake specified pre-reading and question preparation in advance of the classes based on the material introduced in the lectures.

Opportunities for Formative Feedback

Students will be able to monitor their progress through weekly seminars. Model answers and answers and marking schemes for workshop and past and specimen examination papers will allow students to assess their own performance.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Unseen exam	2 hr	100.00
Total percentage (Assessment Exams)		100.00

The resit for this module will be 100% by examination.

Reading list

The reading list is available from the Library website

Last updated: 12/12/2018 10:48:53

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