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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Financial Intermediation, Markets and Institutions (CMSE11314)

Course Outline
SchoolBusiness School CollegeCollege of Humanities and Social Science
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityNot available to visiting students
SCQF Credits15 ECTS Credits7.5
SummaryThis course provides foundation knowledge that is required to give students a broad understanding of financial intermediation, the roles of different types of financial institutions and the structure of financial markets.
Course description The course provides an integrated overview of both theoretical and practical issues related to the modern financial intermediation business. It covers four central topics. The introductory lecture outlines the role and functions of the financial system and the nature of financial intermediation with special emphasis on current issues in banking. The second, the third and the fourth lectures cover the main activities and types of financial institutions/intermediaries. Lectures 5 to 8 discuss the main types of financial markets. Finally, the last two sessions explore issues related to the organisational structure of financial institutions and link them with ethics, professionalism and effective management.

Lecture 1: Theory and current issues in financial intermediation
Lecture 2: Depository and Contractual Saving Institutions
Lecture 3: Securities Market and Investment Institutions
Lecture 4: Central banking theory and international regulation
Lecture 5: Money Markets
Lecture 6: Capital Markets: Bond and Stock Markets
Lecture 7: Foreign Exchange and International Financial Markets
Lecture 8: Hedging and Derivatives Markets
Lecture 9: Corporate governance and organisational structures in financial intermediaries
Lecture 10: Ethics and professionalism in financial intermediaries

Student Learning Experience
The learning outcomes will be achieved by information imparted in the lectures, by the discussions and participation in tutorials, by the process of researching information and by writing an essay.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Course Delivery Information
Academic year 2018/19, Not available to visiting students (SS1) Quota:  None
Course Start Semester 1
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 150 ( Lecture Hours 20, Seminar/Tutorial Hours 4, Formative Assessment Hours 100, Summative Assessment Hours 2, Revision Session Hours 1, Programme Level Learning and Teaching Hours 3, Directed Learning and Independent Learning Hours 20 )
Additional Information (Learning and Teaching) Preparation for the tutorials
Assessment (Further Info) Written Exam 70 %, Coursework 30 %, Practical Exam 0 %
Additional Information (Assessment) Individual Assignment (Essay) 30% This assesses Learning Outcomes 1 and 2.
Exam (70%) This assesses all Learning Outcomes.

Coursework and the written exam are designed to evaluate the correct achievement of the learning outcomes. Specifically, the assignment is designed to encorurage students to eleaborate critically on the material summarised in the first four lectures, i.e. rationale for financial intermediaries and their role and functions. The exam will include both questions that assess the understanding of the issues listed under the learning outcomes and the ability of students to process information and construct their own reasoning on the provided issues.
Feedback All students will be given at least one formative feedback or feedforward event for every assessment component in the course in time to be useful in the completion of summative work on the course.

Feedback on formative assessed work will be provided within 15 working days of submission, or in time to be of use in subsequent assessments within the course, whichever is sooner. Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.

Feedback will comprise individual feedback on student assignments and overall exam mark feedback in the form of a report.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S1 (December)CMSE11314 Financial Intermediation, Markets and Institutions2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. Understand and critically discuss why financial intermediaries exist.
  2. Understand and critically discuss the roles and functions of different types of financial institutions.
  3. Understand and critically evaluate the roles and functions of central banks.
  4. Understand and critically discuss the structure of financial markets.
  5. Critically discuss corporate governance arrangements in banks and ethical issues in financial intermediation.
Reading List
The main textbooks for the course are:
-Casu, B., Giardone, C., Molyneux, P. 2015. Introduction to Banking, 2nd ed.
-Mishkin, F., Eakins, S. (2015): Financial Markets and Institutions. Pearson, 8th ed.
The complete list of readings is available on Learn in a separate document.

Resource List:
Additional Information
Graduate Attributes and Skills Cognitive Skills
On completion of the course a student will be able to:
- describe the functions of different types of banks including central banks;
- illustrate the role of banking in the financial-services industry;
- describe the structure of different financial markets;
- explain the professional decision-making and the principles of effective management in banking.

Subject Specific Skills
After completing this course, students should be able to:
- comprehend the effects of central bank policies;
- explain the professional ethics in the banking industry and other financial intermediaries
KeywordsNot entered
Course organiser Course secretaryMrs Kelly-Ann De Wet
Tel: (0131 6)50 8071
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