Finance and Banking

This module introduces you to the concepts and theories of finance and investment that underlie the techniques which are offered as aids for the understanding, evaluation and resolution of financial managers’ problems. The module covers derivatives (e.g., futures, forwards, options and swaps) and alternative investments (e.g., real estate, private equity, hedge funds and commodities), and lays some essential backgrounds which will be further developed at a later stage of your degree programme.

This module provides a broad understanding of the skills needed to turn clients' investment objectives into trading strategies. It is designed to prepare participants for roles in investment firms, regulators, and clients.

Guidance on the links between finance theory and trading will be part of the programme of study. You will manage a simulated sub-portfolio on behalf of a client. During the module, you will report to, and make trading recommendations on behalf of, your client. These reports and recommendations will be in response to real-time daily news, and in response to changes in the client's investment objectives. Participants will need to apply their knowledge of finance theory, and portfolio management, in this changing situation. The module emulates many aspects of a trading floor and participants will learn how to analyse the impact of trading strategies on risk, return, and transaction costs. You will gain an understanding of hedging, and how to manage client cash flows.

The objectives of this module are to provide you with an introduction to the financial management of the commercial banking enterprise, provide a critical understanding of the basic issues involved in value creation and risk management for banking firms, and equip students with the technical and analytical tools, and strategic abilities necessary for managerial responsibility in the financial management of the banking firm. The module will also provide you with a critical understanding of the regulatory and supervisory environment in which financial institutions operate, and the various national and international standards they must comply with.

Investment Banking, Digital Banking, and Green Finance

First, the module provides an introduction into various aspects of investment banking. The emphasis will be laid on giving an understanding of the complex interactions of investment banks with competitors, their clients and investors in the market. Second, the module provides you with a critical overview of the diverse banking digital transformation models and further analyses the market’s development through partnerships with the FinTech industry. Third, the module provides a critical overview of the different aspects of green banking, main theories and principles as well as practical how-to guidelines to adopt green banking practices. The module discusses why green banking is central to achieving sustainable development. It illustrates the evolution of green banking around the world, different types of environmental risks created by firms and how these risks offer threats to sustain ability, and ongoing trends and patterns of green banking practice. It also presents an outline of the regulatory framework necessary to help the banking sector adapt to the change towards green banking.

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FinTech, Green Finance and Investment

First, the module examines the latest developments in financial technology, relating such developments to core functions and processes in the sector such as principles of financial intermediation, regulations. You will critically assess developments such as cryptocurrencies and evaluate the implications of differing technological approaches. In considering the wider implications for society of new technologies (such as privacy concerns) you will develop a critical view of the future prospects for the implementation, benefits and drawbacks of what is often referred to as “Fintech” and associated topics such as Insuretech and Regtech.

Second, the module introduces students to the topic of green finance and its potential contribution to a sustainable economy in the context of climate change and the transition to a low-carbon economy. Specifically, the module supports you in understanding how climate and other environmental risks create potential financial risks in banking and capital markets and analyses the role of financial actors in driving and potentially mitigating these risks. You will be exposed to both traditional and alternative risk management approaches and investment theory frameworks used to process and quantify these risks, as well as a range of case studies on the role and impact of institutional investors, banks, financial supervisory authorities and governments in aligning financial markets with climate and environmental goals.

Dissertation

The dissertation is the culmination of the Masters programme and will draw on your learning over the course of the Programme. The dissertation is studied independently with the assistance of a supervisor and is a chance for you to academically pursue an area of Finance or Banking of particular interest. Dissertations can take a range of formats such as empirical research or a systematic review.

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Applied Research Project

The applied research project will integrate your academic knowledge with your analytical skills to rigorously investigate a real-world problem or issue in finance or banking, which will be provided to you. The project can focus on a case study, an institutional problem or a broader policy issue.