MSc Global Banking and Finance Module Descriptions

Specialist Core Modules

Specialist Research Modules

SPECIALIST CORE MODULES

Bank Risk Management

Banking is a special financial industry sector, whereby banks traditionally manage deposit and loan instruments between lenders and borrowers, and/or engage in financial activities like underwriting, proprietary trading, M&A, whilst constantly facing the constraints and opportunities that any firm faces. Unsurprisingly, banks have been influenced by the globalisation trends affecting their structure and by changes in the regulatory environment. Both of these developments also affect their customers. Whether a bank chooses to strategically remain focused in one country or expand internationally will affect its profitability, its existing customers, its product range, ultimately its own survival. The nature of banking has been transformed by financial innovation, which at one level originates in banks providing intelligent ways of either managing their risk exposure and/or providing tailor-made financial instruments. The growth of derivative markets and secondary markets in bank deposits and loans has been of special importance in this transformation. Against this background, over the past couple of decades we have observed bank failure on a large scale in over 90 countries (including the USA), which poses a systemic risk due to the special role banks play in any financial system. In response to these events, to the complexity of new financial instruments and to the challenges of globalization, there is an ongoing effort to develop more effective approaches to bank management and, in particular, more reliable techniques for measuring, monitoring and managing risk.

Banking Regulation

This module is designed to develop the MSc students’ understanding of the Financial Regulation codes and legislation across the globe. It will enable the successful student to critically analyse a range of rules, legislation issues and supervisory approaches with respect to risk, performance and strategic decisions related to the banking and financial industry. The module aims to develop the capacity for the successful student to work in a regulatory or supervisory authority, as well as to understand how the regulatory framework may impact on the different segments of the financial system. This module aims to provide a framework for the systematic study of Financial Regulation combining a common theoretical core (drawn from law, political science and institutional economics) with the practical application thereof to case-studies and field studies. The module’s distinctive focus is on institutional issues and behaviour in regulation. A significant emphasis is placed on the 2007/2008 financial crisis and the regulatory approaches implemented worldwide in order to tackle such crisis. The focus excludes the welfare economic aspects of regulation. It aims to bring together the contrasting Global and local/regional perspectives on Financial Regulation, and to juxtapose experience of regulatory practice with theoretical ideas about how regulation is intended to work.
This module is designed to complement the associated core modules. As a field of study, regulation of financial industry demands a multidisciplinary approach encompassing legal, political, economic and financial issues that are intertwined in the establishment and execution of the process at the regulatory and corporate levels.

Corporate Finance

This module is designed to develop the MSc students’ critical understanding of Corporate Finance theory and practice. It is an advanced module that covers the interrelationship between investment decisions, financing and corporate value. The principle objective is to forge a solid understanding of financial, interest rate, cash flow, valuation and structuring techniques that will be synthesised into modules on the programme and directly to inform technical mastery in the critical analysis, application and execution of financial management. Financial managers are asked to address the following questions: what long term investments should a firm (whether a bank or otherwise) undertake (capital budgeting decision); how should cash be raised for the required investments (financing decision); how could a firm manage its day-to-day cash and financial decisions (short term financial planning). These key questions are complicated by first, a globalised context where companies can raise and invest funds in various markets with their own economic, political, currency and other risks; secondly, the separation of ownership from control and the inherent conflict therein; and thirdly, the fact that companies and markets are affected by merging and acquisition processes.

Financial Statement Analysis & Valuation

This module is designed to provide MSc students with: (1) a critical engagement with reporting and accounting policies and their effect on the data in financial statements; (2) and financial statement analysis from an investment perspective. This module is directed at future finance professionals and as such the main goals are M-level mastery of financial statements for company analysis and valuation purposes. The module at a critical level relates with the Investment Analysis module (GBF459), the Alternative Investments module (GBF453) and the Trading in Global Financial Markets module (GBF458) as market practitioners need to be able to assess the viability of an investment by means of fundamental information obtained through the financial statements.

Monetary Policy & Central Bank Operations

This module is designed to develop the MSc students understanding of Monetary Policy theory and practice. It is an advanced module that covers the interrelationship between monetary policy decisions, interest rates and investment decisions. The principle objective is to forge a solid understanding of the theories underlying contemporary monetary policy frameworks, demand and supply of money, portfolio choices, rules and reputation of a central bank that will be explored further in different modules on the programme and directly to inform technical mastery in the critical analysis, application and execution of how the monetary policy framework may affect the economic agents decisions, be it a business or a household.

Investment Analysis

This module is designed to develop the MSc students understanding of investment theory and practice. It provides students with a framework of consistent fundamental principles which help students to develop the intuition to confront challenges throughout their professional working lives. The fundamental principles (CAPM, APT, EMH, Black and Scholes) are covered both from an academic and practitioners’ point of view, linking financial theory with actual practice.

SPECIALIST RESEARCH CORE MODULES

Research Methods

The module is designed to facilitate MSc students’ study of research methods as well as prepare them for writing up their dissertations. As the role of other modules is helping students to critically understand different aspects of the banking and finance theory and practice, GBF 404 focuses on using the knowledge acquired to conduct a particular research in the area of global banking and finance. Namely, the students will be able to choose a relevant methodology to answer their research question-s. As a result, the module is interrelated to all other modules of MSc Global Banking and Finance Programme. This module has been designed to provide students with an understanding of research, through applying quantitative and qualitative data analysis. The quantitative data analysis includes statistical and econometric methods. The qualitative data analysis includes interview, survey and case study analysis. The aim is to enhance an ability to apply these methods in dissertation work and in subsequent employment or further studies. In order for the student to be able to successfully articulate empirical tests of the banking and financial theory, the student is required to be able to understand the various academic aspects of banking and finance theory and practice, the various methodologies available in conducting research and also to competently manage data collection, analysis and interpretation.

Dissertation

The MSc dissertation is an independent piece of research focusing on the selection and analysis of a topic, design of the research, its execution and presentation as a dissertation. It serves as the core integrative and most important element of the M.Sc. programme, realising 60 credits. To be awarded the degree of MSc in Global Banking and Finance from EBS London the student must attain technical mastery in the field of specialisation, be capable of conducting independent scholarly work, and through the dissertation in some way extend or modify a part of previously existing knowledge within Global Banking & Finance theory and practice. The dissertation thus offers the student a unique opportunity for personal, intellectual, and professional development based on the skills, knowledge and capabilities developed during the Programme. The students should from the very beginning approach their participation in the Programme with this end in mind. The aim of the dissertation is to develop and document the skills, capabilities, attitudes and qualities that provide any future employer with clear and unequivocal evidence that the student can deliver leadership, innovation and productivity in today’s research-influenced global environments. The dissertation is a major research-based activity centred in the banking and finance concepts that have been studied in the core and elective modules. The core and elective modules must be completed before the dissertation is started. Students will be required to develop their ideas and focus on the research not only from the core knowledge but also from experience, existing and developing advancements in the field. They will be guided and tutored by the appropriate member of staff. There is a separate handbook for the dissertation module. Given the competition for employment that MSc GBF graduates face, a sound dissertation becomes the calling card for interviews. A sound MSc dissertation is one, which requires evidence of primary research by the student, together with robust critical secondary research, critical hypothesis testing and interpretation of own evidence.

Page last updated 4/5/2012