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Unit of study_
BANK3012: Bank Supervision
2024 unit information
This unit provides undergraduate students with knowledge and a greater understanding of the central issues and principles underpinning recent developments in the global regulation and supervision of banking/financial institutions. The concept of financial stability as the goal of public policy and the rationale for prudential regulation and supervision of banks is discussed first. Students are then exposed to a range of concepts and issues pertaining to the measurement, management and prudential regulation of key risks in banking (i.e. market risk, credit risk, operational risk, liquidity risk). Other elements in the unit entail discussion and examination of issues relating to the concept of capital adequacy and risk-based capital ratios with particular reference to Basel Capital Accords; the Basel Core Principles for Effective Banking Supervision; different national approaches to regulation and supervision of banks; government financial safety nets (i.e.'Lender of Last Resort' and depositor protection schemes); post-crisis structural banking reform proposals.
Unit details and rules
Managing faculty or University school:
Business (Business School)
| Study level | Undergraduate |
|---|---|
| Academic unit | Finance |
| Credit points | 6 |
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Prerequisites:
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BANK2011 or ECOS2004 or FINC2011 |
|---|---|
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Corequisites:
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None |
| Prohibitions:
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None |
| Assumed knowledge:
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BANK3011 |
At the completion of this unit, you should be able to:
- LO1. Discuss and explain the rationale for bank regulation and supervision, and why such regulatory/supervisory efforts need to be undertaken within a global context.
- LO2. Explain the core principles of effective banking supervision and how such principles can be applied to assess a country’s supervisory and regulatory regime.
- LO3. Identify and explain the importance of bank culture and conduct, and why regulators have increasingly prioritised these risks.
- LO4. Identify the principal risks encountered by the banking industry and explain why they attract regulatory scrutiny; clearly articulate how the effective management of these risks is central to the performance and viability of banks and financial institutions.
- LO5. Explain the role of capital adequacy requirements, and describe the regulatory requirements set out by the Bank of International Settlements in its capital accords.
- LO6. Explain how banks measure, model and manage their market, credit, operational, liquidity, and conduct risks, and assess regulatory/supervisory perspectives on the effective management and supervision of these risks.
Unit availability
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