MSc Banking and Finance

This module lays the statistical and econometric foundations for data analyses and modelling, covering fundamental topics of estimation and inferences of linear and non-linear econometric models using Excel/Stata software. The quantitative, analytical and software skills acquired from this module will directly enable students to conduct independent quantitative analysis of data using estimation as well as hypotheses testing. As such, the module aims to help students to learn research methods, an integral part of any research project at post-graduate level, market analysis or policy analysis in government and non-government organisations.

Students will acquire a deep understanding of the microeconomics of banking. Students will learn why banks and financial markets exist and the purpose of financial intermediation. Students will identify the main risks facing banks and how banks manage these risks. Students will appreciate how the market structure influences competition and whether different ownership forms and choice of business model impacts bank performance. Knowledge of central banks and monetary policy regimes including inflation targeting will be acquired. Students will appraise the case for regulating banks and critically evaluate developments in the regulatory architecture. Lastly, students will be introduced to emergent issues, such as the role of technology in banking, the reform of compensation contracts, and green finance and sustainability.

The module examines the various approaches to equity investment analysis, providing a systematic understanding of the challenges faced and the decisions to be taken when analyzing and valuing corporate equity. It encompasses the principles and practice of valuation of companies’ shares. This is examined from several aspects; industry analysis, company analysis, valuation methods and the link between valuation and investment style. Real corporate analysis will be undertaken in order to highlight and evaluate the different approaches to investment analysis.

This module provides a rigorous grounding in the theory and practice of fixed income markets. Students develop the analytical skills to price bonds and interpret the relationships between prices, yields, coupon rates, and maturity, before progressing to more advanced tools including duration, convexity, spot rates, and forward rates for managing interest rate risk.The module examines the term structure of interest rates through major theoretical frameworks and explores how credit risk is quantified and modelled using structural and reduced-form approaches. Students also gain exposure to the full landscape of fixed income markets ¿ from government and municipal bonds to corporate debt, international securities, and asset-backed products ¿ with attention to the institutional features and risk characteristics of each sector.Weekly topics move from foundational pricing and yield analysis through to credit risk modelling, securitisation, and bond portfolio management, providing both the technical depth and market context needed for careers in investment management, fixed income analysis, and financial risk.

FinTech is revolutionizing and rapidly changing the global financial services industries. Business models that can facilitate disintermediation, revolutionize how existing firms create and deliver products and services, address privacy, regulatory and law-enforcement challenges, provide new gateways for entrepreneurship, and seed opportunities for inclusive growth. This module provides an introduction to the FinTech sector. Topics may include but are not limited to: blockchain, cryptocurrencies, decentralized applications, smart contracts, payments services, alternative and P2P lending and crowdfunding, AI, machine learning (including applications such as robo-advising) and Insurtech. Students are expected to develop a broad understanding of recent FinTech development, valuation, risk and its impact in the financial industries.

The module provides the theoretical underpinnings of our MSc Accounting and Finance programme. It introduces the pivotal concepts which form the basis of theoretical finance under three broad headings; Portfolio Theory and Practice, Equilibrium in Capital Markets and Introductory Analysis of Asset Classes. Core concepts include the relationship between risk and return, the Capital Asset Pricing Model (CAPM) and the Efficient Market Hypothesis (EMH) but the module also extends this analysis into new theoretical areas such as Behavioural Finance.

Risk management focuses on the following types of financial risk that arise for a business: market risk, credit risk and liquidity risk. A brief introduction to non-financial risks is also given, but is not the main focus. This module considers financial risk management strategies; how risk is evaluated; the methods that are available to hedge against risk and the strategies that are employed to mitigate risk. This is complemented by consideration of key risk management issues for financial institutions including bank capital adequacy. The lessons to be learned from the Financial Crisis of 2007-08 are also investigated. Understanding risk and how to identify and deal with it provides a key input for students of finance, accounting or banking.

This module equips students with the analytical frameworks and practical skills required to construct, manage, and evaluate investment portfolios in a professional setting. Starting from the investment policy statement and client mandate, the module works through the full portfolio management cycle: formulating capital market expectations, building optimised allocations using mean-variance and factor-based approaches, implementing portfolios across equity, fixed income, and potentially alternative asset classes, and evaluating outcomes through rigorous performance attribution.Students will engage with industry-standard tools and datasets to solve realistic portfolio problems under genuine constraints such as liability matching, ESG screens, liquidity budgets etc.. Emphasis is placed on the judgement calls that distinguish competent practitioners: when to deviate from model outputs, how to reconcile conflicting objectives, and how to communicate investment decisions to clients and stakeholders.The module is particularly relevant to students pursuing careers in investment management. Its content and assessment are designed to develop and test applied analytical reasoning.

As a result of a range of recent corporate scandals an increased emphasis has been put on corporate social responsibility and the need for the board of directors to conform to an ethical code of conduct while managing the affairs of an entity. This module explores how corporate governance examines the system of rules, principles and procedures through which a company is run to promote the best interest of its shareholders, other stakeholders and the wider society, and considers the impact of artificial intelligence on organisations.

Applied Cases in Banking is a compulsory module that will equip students with deep understanding of the processes of collecting, organizing, and analysing bank-level and other financial and economic data to test hypotheses that students develop from the theoretical literature presented in the module. The module facilitates the independent learning process and provides students with the knowledge, skills and understanding required to articulate findings in a structured report format. It will enable students to gain practical knowledge of academic research and can provide a basis for the Project in Banking module that will follow.

The Project in Banking is a compulsory module for the MSc Banking and Finance Programme. It provides an opportunity for students to conduct a study on a banking-related issue and reflect on it thereby giving students the opportunity to understand the techniques essential in writing reports. Students are expected to select a banking-related issue from a range of choices, some of which will have been presented in the pre-requisite Applied Cases in Banking module, conduct independent research, and complete a report within a stipulated period. Students may consult with the Module Convenor while deciding on the project that interests them. In addition, support sessions will be conducted by the module convenor to assist students to gain a comprehensive understanding of the requirements of the report. The research should be based on secondary data sources.

This module is targeted at students interested in understanding the pricing of derivative securities, specifically options. Applications are used to reinforce a rigorous development of arbitrage theory that underpins the pricing of derivative securities.

The module equips students with the knowledge and tools to implement financial models using Python. The course introduces students to the general principles of building financial models, as well as a number of specific financial modelling tools, including matrix calculations, optimization, regression analysis (both time-series modelling and panel data modelling), out-of-sample forecasting and simulation. These methods are applied to a range of practical problems in finance, including passive and active portfolio management, risk management and currency valuation. The emphasis of the course is on practical application of the theory, with lectures on each topic followed by in-depth practical classes, in which students work through real world problems using Python.

This module examines international currency markets and currency transactions, exchange rate systems and the implications of exchange rate volatility. It also explores various currency risks that arise from international operations and examines issues that arise when firms seek financing outside their home markets.

Corporate Governance is an area that has grown rapidly in the last few years fuelled by high profile corporate collapses and financial crisis. The module builds on sound theoretical base to encompass the latest developments in the field worldwide. It takes an international approach to corporate governance, contextualising its development and providing a stimulating range of academic and empirical practitioner research, and topical case studies. It also introduces institutional and legal systems from both government and firm’s viewpoints that influence the effectiveness of corporate governance.