Module code: ECO3019

Module Overview

The module builds on the informational asymmetries and the resulting market failures to examine the origins of financial intermediaries, their interactions with the financial markets and the impact of regulation on the financial system.

Module provider


Module Leader

LAZOPOULOS Ioannis (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 6

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 128

Lecture Hours: 22

Module Availability

Semester 2

Prerequisites / Co-requisites


Module content

Indicative content includes:

  • The role of financial intermediaries in the financial system;

  • Types of financial intermediaries and their functions;

  • Banks vulnerability to default and bank regulation;

  • Central banking and the role of banks in monetary policy;

  • Banks’ financial statements;

  • Management of banks and off-balance sheet activities;

  • Microeconomics of banking and deposit contracts;

  • Liquidity provision and bank runs.

Assessment pattern

Assessment type Unit of assessment Weighting

Alternative Assessment

Not applicable.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate:

Awareness of the structure of financial system and functions performed by markets and institutions, critical understanding the importance of financial institutions in the economy and the reason for being regulated, ability to evaluate their performance based on financial reports and other activities.

Thus, the summative assessment for this module consists of:

  • 30% Class test – multiple choice and short essay/problem-solving questions

  • 70% Final Exam: consists of two essay/problem-solving questions out of a choice of four.

The multiple choice tests provide an effective way to examine students' understanding of underlying concepts and theories as well as technical aspects of the material covered in the module as outlined in the learning outcomes and module content.

The essay/problem-solving questions comprised by extended-response essays and problem-solving questions designed to assess the learning outcomes.

Formative assessment and feedback

Feedback is provided on a continuous basis in the form of verbal feedback through discussion of open-ended questions during lectures or questions provided in the tutorial problem sets. Students also receive detailed solutions to tutorial questions/exercises against which they can compare their answers. Through the availability of previous exam papers and the provision of mock coursework questions, students are able to familiarise themselves with the structure of the assessment. Moreover, the marked coursework scripts provide students with individual feedback on their learning and identify potential weaknesses to enhance their performance.

Module aims

  • Help students to understand the specific role of financial markets and intermediaries in the financial system and the environment in which financial intermediaries operate
  • Help students to understand the functions and operations of financial intermediaries and the consequences of these operations to the wider economy.

Learning outcomes

Attributes Developed
1 Identify the role and functions of financial intermediaries KCT
2 Demonstrate a critical understanding of the operations performed by financial intermediaries KC
3 Discuss the underlying risks involved in intermediation KC
4 Evaluate the need for regulation of the financial sector KCP
5 Apply microeconomic theory in banking to explain bank's vulnerability to default KCP
6 Appreciate the challenges that both banks and regulators face in light of recent crisis KCP

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

  • enhance written and verbal presentation skills as well as problem-solving and analytical skills

  • appreciate the complex role of financial intermediaries and the consequences of their operations to the wider economy.

The learning and teaching methods include:

  • 2 hour lecture per week x 11 weeks

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list
Upon accessing the reading list, please search for the module using the module code: ECO3019

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Economics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Business Economics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Economics and Finance BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Economics and Mathematics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Financial Mathematics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2019/0 academic year.