Skip to main content


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

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


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.

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Scheduled Learning And Teaching ActivitiesLecture72:0014:00PiP Lectures
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
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.

Assessment Methods

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

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.

Reading Lists