Overview

The content may include but will not be limited to the following topics: The special nature of the banking firm Asset and Liabilities Management (ALM) Liquidity management Capital theory, management and the regulation architecture Fundamental drivers of risks and their measurement Business models and forces of change Competition in banking Business and consumer lending Managing value at risk. Essentials of credit risk analysis Credit risk management Managing the investment portfolio

The content may include but will not be limited to the following topics: The special nature of the banking firm Asset and Liabilities Management (ALM) Liquidity management Capital theory, management and the regulation architecture Fundamental drivers of risks and their measurement Business models and forces of change Competition in banking Business and consumer lending Managing value at risk. Essentials of credit risk analysis Credit risk management Managing the investment portfolio

Assessment Strategy

-threshold -D- to D+Demonstration of the required knowledge and techniques but with significant mistakes and little development of the subject beyond lecture material. -good -B- to B+Clear understanding of the subject, together with evidence of investigation and understanding of the research literature, but with some theoretical or practical minor errors. -excellent -A- to A+Excellent grasp of the concepts and techniques together with significant evidence of engagement and understanding of the research papers in this area. -another level-C- to C+Demonstration of the required knowledge and techniques but with mistakes and little development of the subject beyond lecture material.

Learning Outcomes

• Appraise the main theoretical and practical issues concerning banking business.

• Develop a critical understanding of the fundamental drivers of risks and risk culture in banking.

• Discuss the main theories and practices underlying modern bank capital management.

• Evaluate the asset-liability management (ALM) process in modern banking firms.

• Evaluate the market forces, competitive conditions and regulatory requirements that are shaping bank business models and strategies as well as the banking and wider financial industry.

• Evaluate the processes and techniques in credit risk and liquidity management methods that banking firms use.

• Examine how banks measure different risks.

• Explain how to measure, manage and maximise the bank’s value.