Module Catalogue 2024/25

ECO3006 : Economics of Banking

ECO3006 : Economics of Banking

  • Offered for Year: 2024/25
  • Module Leader(s): Dr Cesar Blanco
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters

Your programme is made up of credits, the total differs on programme to programme.

Semester 2 Credit Value: 10
ECTS Credits: 5.0
European Credit Transfer System
Pre-requisite

Modules you must have done previously to study this module

Code Title
ECO2101Microeconomic Analysis
ECO2102Macroeconomic Analysis
Pre Requisite Comment

ECO2101 in particular General Equilibrium Theory; Welfare Economics; Market Failure, Theory of the Firm; Choice under Uncertainty
ECO2102 in particular Banking in the 3-Equation Model

For Incoming Exchange and Study Abroad Students:
"The requirements for ECO3006 Economics of Banking are: 1) Microeconomic Analysis (ECO2101), 2) Macroeconomic Analysis (ECO2102) 3) Basic competences in math.

Therefore, exchange and study abroad students are expected to have completed courses on: Microeconomics I and II, Macroeconomics I and II, and one or two courses in Mathematics. It is important that exchange and study abroad students have second year courses on Microeconomics, Macroeconomics and Mathematics."

Co-Requisite

Modules you need to take at the same time

Co Requisite Comment

N/A

Aims

To introduce students to the study of banks in a modern society. To develop students’ understanding of the role of banks as financial intermediaries from microeconomic as well as macroeconomic perspectives.

Outline Of Syllabus

The course begins with the development of the basic concepts used in contemporary banking theory, especially informational problems associated with financial contracts. Two major functions of banks, monitoring borrowers and providing liquidity insurance, are studied in this context. Applications of the theory to, e.g., the fragility of banks, to banking regulation and to the role of banks for the economy are then considered.

Learning Outcomes

Intended Knowledge Outcomes

On satisfactory completion of the module a student will be able to explain and apply advanced concepts and models used in contemporary banking theory. A student is expected to relate the role of institutions to the performance of banks in modern societies.

Intended Skill Outcomes

On satisfactory completion of the module a student will be able to conduct basic economic analyses of financial institutions. A student is expected to relate sound economic reasoning to practical issues in banking regulation and monetary policy. A student is expected to recognize important trade-offs that arise from financial frictions.

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture72:0014:00PiP Lectures
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Guided Independent StudyDirected research and reading125:0025:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00PiP Seminars
Guided Independent StudyIndependent study125:0025:00N/A
Total100:00
Teaching Rationale And Relationship

Lectures provide an in-depth presentation of theoretical models and required techniques, as well as guidance on how to apply the analysis to real-world economic situations.

Seminars provide opportunities to go into greater depth through exercisers and discussion.

Independent study involves following up reading list references and practicing analytical skills.

Reading Lists

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination902A100N/A
Formative Assessments

Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.

Description Semester When Set Comment
Prob solv exercises2MSeminar questions provided, generic feedback to cohort
Assessment Rationale And Relationship

The written unseen exam is an appropriate way to provide evidence of students’ ability to explain advanced concepts and models used in contemporary banking theory and to apply them to real world problems.

Timetable

Past Exam Papers

General Notes

N/A

Welcome to Newcastle University Module Catalogue

This is where you will be able to find all key information about modules on your programme of study. It will help you make an informed decision on the options available to you within your programme.

You may have some queries about the modules available to you. Your school office will be able to signpost you to someone who will support you with any queries.

Disclaimer

The information contained within the Module Catalogue relates to the 2024 academic year.

In accordance with University Terms and Conditions, the University makes all reasonable efforts to deliver the modules as described.

Modules may be amended on an annual basis to take account of changing staff expertise, developments in the discipline, the requirements of external bodies and partners, and student feedback. Module information for the 2025/26 entry will be published here in early-April 2025. Queries about information in the Module Catalogue should in the first instance be addressed to your School Office.