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Bank financial management

M422

This course concentrates on the principles of bank management of assets and liabilities.

You will learn about the principles of bank balance sheet management and money market operations as well as liquidity ratios and capital adequacy ratios. You will also study issues of bank supervision and regulation.

Topics covered

  • Banking Innovations and Risk
  • Bank Accounts: A Useful Tool if Handled with Care
  • Bank Valuation
  • Bank Risk Management - Liquidity Management
  • Bank Risk Management - Interest Rate Risk Management
  • Cost of Funds and the Funding of Operations
  • Bank Risk Management - Credit Risk
  • Capital Management

Learning outcomes

  • discuss trends affecting the whole financial services industry
  • assess the implications of change for bank risk management
  • outline how the behaviour of banks has been modelled
  • identify the risks facing bank financial managers
  • explain the need to adapt risk management procedures to an increasingly international financial system
  • discuss how interest-rate risk can be managed using hedging activities through the use of financial derivatives and securitization
  • explain why funding mix and costs are important to bank management when making loan and investment decisions
  • discuss how credit risk and default premiums are assessed and monitored
  • analyse the relationship between bank performance and capital adequacy.

Assessment

Assessed by one three-hour unseen written examination and by the submission of two tutor marked assignments.​