Module Lead: Frank Strobel
Introduction and module objectives
The module deals with the fundamentals of why and how banks are regulated. It begins by examining the microeconomic foundations of financial intermediaries, covering sources of banking risk, internal risk management procedures. It critically reviews the changes to the international banking and finance system post 1970. The module will analyse in-depth the evolution of international banking regulation and supervision in selected countries, with close attention is paid to recent global developments in bank regulation and to recent market changes to supervisory practice. The relative strengths and weaknesses of the current systems will be investigated, emphasising cross-country differences. Potential solutions and policy proposals will be examined and critically evaluated.
By the end of the module students should be able to:
Demonstrate an in-depth understanding of the theoretical underpinnings, required for the analysis of bank regulation;
Apply the advanced theoretical framework to analyse trends in international banking and critically evaluate current regulatory practices;
Analyse developments in the area of bank regulation and supervision;
Identify and evaluate the complex sources of banking risk.
Two hour written examination (80%)
Two problem sets (20%)