PRINCIPLES OF BANKING - 2025/6

Module Overview

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.

Module provider

Surrey Business School

Module Leader

WILLIAMS Jon (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

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

Module Availability

Semester 1

Prerequisites / Co-requisites

None

Module content

Indicative content includes, but is not limited to:

• Financial intermediation & the special role of banks
• Liquidity management, asset & liability management, capital adequacy
• Bank regulation rationale for and emergent regulatory architecture
• The loan market syndication & securitisation
• Bank business models and ownership/governance in banking
• Structure & competition in banking
• Central banks, the money supply & monetary policy
• Executive compensation
• Technology & the rise of FinTech
• Green finance & sustainable banking

Assessment pattern

Alternative Assessment

An individual essay covering the same learning outcomes will replace the group project.

Assessment Strategy

The assessment strategy is designed to:The assessment strategy is designed to provide students with the opportunity to demonstrate the achievement of the modules learning outcomes. This will allow students to demonstrate critical thinking and problem-solving skills. The summative assessment for this module consists of: 

• Group project (addresses learning outcomes 1, 3 and 5)
• A final examination based on the entire module (addresses learning outcomes 1 to 5)

Formative assessment and feedback  Students appreciation of the module will be assessed on an on-going basis through interactive lectures and the weekly seminar exercises. Constant feedback is given, especially through the seminar exercises to ensure that students cultivate the abilities of application and analysis. Elements of self-assessment are also built into the seminar exercises. Students should attempt all seminar exercises and digest the recommended readings to take ownership of their studies. Students also can book an appointment to see the tutor during office hours to obtain feedback.

Module aims

• The module aims to develop students understanding of the microeconomics of banking theory and appreciation of the activities and risks of banks and financial markets.
• The module will cultivate students ability to evaluate and assess emerging factors shaping the future of the global banking and financial system.
• The module will enhance students employability by developing transferable skills and problem-solving abilities through rigorous technical analysis and practical applications.

Learning outcomes

Methods of Teaching / Learning

The learning and teaching strategy is designed to:Develop students critical awareness of all the elements included in the module content and to enhance students employability through the development of key transferable skills relevant across a spectrum of financial sector activities. Teaching will be made as interactively as possible in the lectures and seminars.In particular, the teaching and learning methods include the use of weekly lectures and weekly seminars to illustrate relevant theory and allow the student to practice application of such theory with a range of seminar exercises. Lecture material will be supported by directed reading and weekly seminar exercises will test students understanding on an ongoing basis. Students are expected to read widely, carry out independent learning, and reflect on their learning. The weekly seminars provide students with the opportunity to work with peers and to discuss topics and problems presented in class. This will enhance class participation and help students assimilate ideas and develop communication skills. Formative feedback will be provided to students during interactive sessions. SurreyLearn will be used as an information portal and will contain lecture notes, seminar exercises and model answers plus past exam papers and model answers. The learning and teaching methods include:LecturesSeminars

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

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MANM598

Other information

Surrey Business School is committed to developing graduates with strengths in Employability, Digital Capabilities, Global and Cultural Capabilities, Sustainability, and Resourcefulness and Resilience. This module is designed to allow students to develop knowledge, skills, and capabilities in the following areas:

Digital capabilities: Students will develop skills in sourcing and organizing information as well as in data collection and the application of methods for purposes of analysis. In addition, students will enhance their presentation skills using professional software to prepare their reports. 

Employability:  Students will acquire deep knowledge of the operations and management of banks as well as of issues of interest to bank regulators and policymakers. Students will develop the ability to evaluate problems, devise solutions, and critically analyse bank performance and public policy. These skills will help students to be employment ready. 

Global and cultural capabilities: Students will gain essential knowledge of the process of globalization as it applies to banking and finance, for instance, understanding why it is that banks establish subsidiaries in other countries. Students will develop an appreciation of the cultural differences including structural and regulatory differences that exist across countries and their impact on banking sectors. 

Resourcefulness and Resilience: The module will equip students with specialist knowledge of the operations of the management of financial institutions. Students will learn to apply techniques that banks use to manage various risks and evaluate various strategic, corporate governance, and policy challenges facing bank managers and policymakers. In turn, this fosters development of students critical acumen, analytical prowess, and transferable skills.

 
Sustainability: The module emphasizes the intermediary role of banks in transforming savings into productive assets, such as loans to businesses and households.  By identifying the most productive uses of finance, banking supports economic growth and through the financing of innovations, reducing poverty, and enhancing sustainability. 

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 2025/6 academic year.