Course information

This module offers an advanced examination of how banks and financial institutions operate, create value, and manage risks within an increasingly complex and tightly regulated financial system. It introduces the strategic and economic rationale for banking – why financial intermediation remains essential in modern economies – and analyses how institutions allocate capital, support liquidity, and absorb risk in order to sustain financial stability and economic growth.

The module develops a rigorous understanding of balance-sheet structure, risk-adjusted performance, and the interaction between liquidity, capital, and profitability. Particular emphasis is placed on the influence of prudential standards – such as Basel III/IV – and the broader supervisory architecture that shapes incentives, business models, and market conduct. Analytical perspectives are complemented by critical debates on governance, competition, digital transformation, and the sustainability agenda, situating banking within wider technological and policy developments. Where relevant, distinctions between machine learning techniques and broader artificial-intelligence applications in banking risk and performance assessment are also clarified.

Teaching integrates lectures, applied workshops, and case-based analysis of contemporary regulatory and strategic challenges. Engagement with quantitative data, financial disclosures, and regulatory reports supports the development of both conceptual understanding and applied evaluative skills.

By the end of the module, participants will be able to critically assess the strategic, regulatory, and ethical dimensions of modern banking and articulate evidence-based insights relevant to roles in bank management, risk analytics, financial regulation, and policy evaluation.