International Banking and Finance MSc

University of Dundee

This module is designed to introduce students to the structure and functioning of the banking and financial services industry. In particular, the module will examine the key and emergent issues in banking, including the role of central banks and regulation, and the risks that banks face. The module will also introduce students to different banking systems across the globe.

This module provides you with an extensive, detailed and critical knowledge and understanding of contemporary issues in the banking industry and financial markets. You will understand the role of banks as financial intermediaries; the role of banks in the international money; credit and bond markets; the impact of international factors on banks; the regulatory environment in which banks operate; the risks faced by banks and how to mitigate these risks, and the latest trends in innovation and technology in banking.

The module will broaden your knowledge and understanding of the quantitative theory of financial risk, and how that risk can be managed by financial derivatives; develop critical reasoning skills in the context of financial derivatives and financial risk management; equip you with the practical skills to apply most appropriate financial derivatives to managing and hedging the financial markets volatility. When you finish the module you will be able to explain (i) the sources of financial markets risk, (ii) the key characteristics of various derivative products; (iii) the use of these products as risk management tools and understand the implications of hedging via risk-neutral replication and construct hedge portfolios, and understand pricing and hedging principles of a range of derivatives.

This module enables you to evaluate and manage the risks involved in international business in order to make sound financing and investment decisions. You will develop a knowledge and understanding of foreign exchange and eurocurrency markets; models of foreign exchange rate determination and financial products that manage currency risk; models of interest rate determination and financial products that manage interest rate risk; the practical uses of international capital markets for managing risk; the international economic and political environment in which multinational companies operate; the risks of foreign direct and foreign portfolio investment; practical perspectives of risk, and techniques for assessing the risk of capital and financial investments.

The module aims to provide a detailed understanding of how to analyse and estimate the efficiency of banks and the competitive structure of banking markets. The module covers issues relating to the financial statement of banks, including ratio analysis and the risk assessment of banking ratios. The module also aims to equip students with the knowledge and skills required to model banking efficiency using parametric and non-parametric techniques.

The module assumes no prior knowledge of quantitative methods and will provide an intuitive grasp of the theoretical concepts and basic skills required to estimate and interpret statistics. In particular, the module aims to equip students with the knowledge and skills required to use statistics in their research in accounting or finance, to introduce students to statistical thinking, to enable students to identify and carry out appropriate statistical tests, to introduce students to the SPSS statistical software and for students to be able to recognise when they are out of their depth statistically.

The module provides you with an intuitive grasp of the theoretical concepts and basic skills required to estimate and interpret economic models. In particular, it will allow you to apply statistical techniques to problems in finance by (i) translating theoretical models into an empirically implementable form; (ii) analysing statistical data; and (iii) interpreting econometric results. The module also provides you with an overview of the empirical methods used by financial academics and professionals in the analysis of financial asset prices.

The module aims to provide students with a detailed knowledge and understanding of the context and circumstances surrounding financial regulations and investment practice currently in force in the UK and around the world. The module will also provide students with a critical awareness of the ethical issues relating to investment practice. The module will equip students with current regulatory developments in the UK and globally. Finally, the module will discuss the global implications of systemic financial regulatory failure given the interdependencies of the global economy.

This module is designed to provide students with the skills necessary to produce a focused project on a topical area in banking, finance or investment management.