Financial Institutions and Markets

Module Title	Financial Institutions and Markets
Module Code	25-5012-00S
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	5
Credit Points	20

Assessment Mode Weighting	Coursework	0%
	Examination	100%

Pre-requisites	None
Co-requisites	None

Class Contact Hours
Average Weekly	2

Directed Learning
Average Weekly	10

Module Leader	David Goacher
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

Financial systems may be regarded as comprising sets of financial institutions interacting within markets, and providing financial services and products required by individuals and organisations. The efficient and effective operation of these financial institutions and markets are vital to the smooth running of economies and hence to the standards of welfare achieved by society.

This module provides an overview of the nature and activities of the main groups of financial institutions and financial markets within the UK. It attempts to explain the interrelationships between those institutions and markets, and to identify the forces driving change within the financial system. The module also aims to offer insight into relevant aspects of the regulatory framework and the international linkages between financial systems. Theoretical underpinnings are developed in so far as they are required to assist analysis of financial institutions and markets.

Whilst the substance of the module is firmly grounded within the context of the contemporary UK financial system, the emphasis upon general principles and concepts endows it with a broad relevance. The module provides both an important underpinning for a range of specialist financial services modules at both Levels 2 and 3, and a source of useful background knowledge to students of business and finance in general.

Summary of Aims

To provide students with:

an understanding of the operations of the major groups of financial institutions within the UK financial system and an appreciation of the broad nature of the financial services and products that they offer;
an understanding of the operations of the key financial markets within the UK financial system, of the activities of financial institutions within those markets, and of the importance of the markets to the operations of the financial institutions;
an awareness of the recent and ongoing changes within the financial system;
an appreciation of the regulatory framework within which financial institutions and financial markets function;
an ability to identify the forces of change facing financial institutions and to appraise the alternative development strategies which may be pursued.

Anticipated Learning Outcomes

Upon completion of this module, the student should be able to:

identify the forces driving change within the financial system;
describe the role and operations of the major groups of financial institutions within the financial system;
examine the trends in the strategic development of the major groups of financial institutions within the financial system;
explain the role of various financial markets in the delivery of financial services and products to personal, business and public sector clients;
outline the main characteristics of the regulatory framework within which financial institutions and markets operate;
analyse the impact of the regulatory framework upon the operations and strategy of financial institutions.

Assessment and Feedback Strategy

The summative assessment for this module comprises a single time constrained written examination. This form of assessment is resource efficient (allowing emphasis to be placed upon supported student development) and facilitates deeper learning within the semester delivery. It also provides a transparent and relatively unambiguous method of assessing the anticipated learning outcomes for the module.

A statement of module assessment criteria will be provided to, and discussed with, students at an early stage during the delivery of the module. It is intended to make available to students written indicative answers to examination questions following the publication of results. Students being required to retake the examination will be offered feedback on their examination performance.

Formative assessment will comprise a series of multiple choice tests to be completed as part of the seminar programme. These tests will begin in week 4 and will take place fortnightly thereafter. With the exception of the test in week 12, which will be marked by the students themselves in class, the marked multiple choice tests will be returned the week after they have been taken, so as to give rapid feedback on progress. The pattern of answers across each seminar group will determine the focus of oral feedback and the basis for diagnosis of additional learning support requirements.

In addition, students will be expected to prepare answers to pre-set questions for each weekly seminar. The questions will direct the attention of the students to the key aspects of syllabus content, and collectively emphasise the anticipated learning outcomes for the module. Discussion of the questions and students' answers will take place during the seminars, and written indicative answers will be provided to students for the majority of questions, so as to allow reflective self-assessment of progress. Again, the performance of the students in seminar discussion and relative to the seminar questions will be used as an ongoing diagnostic device for the provision of feedback and advice on required further study.

Module Assessment Criteria

The three-hour examination paper will normally be divided into four sections covering:

the role and operations of major financial institutions;
the driving forces of the strategic development of major financial institutions;
the role of financial markets and their importance within the financial system;
the characteristics and impact of the regulatory framework.

Each section of the examination paper will contain two questions, and students will be required to answer one question from each section. The questions will be structured so as to ensure full coverage of assessment of all anticipated learning outcomes, but will give scope for students to demonstrate originality and creativity of thought and the achievement of unanticipated learning outcomes. All questions will carry equal weight, and a standard assessment criteria matrix will form the basis for assessment of achievement. For each question the matrix will be refined so as to capture the particular required knowledge content and set of learning outcomes being assessed.

Learning Outcome	Assessment Method	Level descriptors
Learning Outcome	Assessment Method	Fail	Pass	2.2	2.1	First
Outcome 1	Examination	No significant forces identified	Some primary forces identified	Most primary forces and some secondary forces identified	All primary and most secondary forces identified	Exhaustive identification of primary and secondary forces
Outcome 2	Examination	Inaccurate or confused description of role and operations	Reasonably clear description of the main elements of the role and operations	Clear description of the main elements of the role and operations	Accurate description of the main and some subsidiary elements of the role and operations	Accurate and rigorous description of the main and a wide range of subsidiary elements of the role and operations
Outcome 3	Examination	No relevant analysis of trends in strategic development	Some analysis of the main trends in strategic development	Detailed analysis of the main trends in strategic development	Detailed analysis of the main trends and examination of some subsidiary trends in strategic development	Rigorous analysis of the main trends and examination of some subsidiary trends in strategic development, demonstrating insight into the relationship between trends
Outcome 4	Examination	No relevant description of the role of any prescribed financial markets in the delivery of financial services and products	Basic description of the role of any prescribed financial markets in the delivery of financial services and products	Clear explanation of the role of prescribed financial markets in the delivery of financial services and products	Clear and detailed explanation of the role of prescribed financial markets in the delivery of financial services and products	Rigorous explanation of the role of prescribed financial markets in the delivery of financial services and products
Outcome 5	Examination	No accurate or clear statement of any of the main characteristics of the regulatory framework	Reasonably clear and accurate statement of some of the main characteristics of the regulatory framework	Clear and accurate statement of most main characteristics of the regulatory framework	Clear, accurate and detailed statement of most main characteristics of the regulatory framework	Clear, accurate and detailed statement of all main characteristics of the regulatory framework
Outcome 6	Examination	No relevant analysis of the impact of the regulatory framework upon operations and strategy	Some relevant analysis of the impact of the regulatory framework upon some aspects of operations and strategy	Detailed analysis of the impact of the regulatory framework upon some aspects of operations and strategy	Detailed analysis of the impact of the regulatory framework upon most major aspects of operations and strategy	Rigorous analysis of the impact of the regulatory framework upon all major aspects of operations and strategy

The standard examination question assessment criteria matrix to be applied is as follows:

Standard examination question assessment criteria matrix

	<40	40 - 49	50 - 59	60 - 69	>69
Evidence of recognition of key question requirements	Fails to identify any question requirements	Very basic recognition of some question requirements	Clear recognition of main aspects of question requirements	Clear recognition of all main aspects and some minor aspects of question requirements	All aspects of question requirements clearly identified
Definition of relevant concepts and principles	Fails to define any relevant concepts and principles	Very basic definition of some relevant concepts and principles	Detailed definition of some relevant concepts and principles	Detailed definition of all major relevant concepts and principles	All relevant concepts and principles clearly defined
Examination of relevant concepts and principles defined	Fails to examine any relevant concepts and principles	Very basic examination of some relevant concepts and principles	Detailed examination of some relevant concepts and principles	Detailed examination of most relevant concepts and principles	Detailed examination of all relevant concepts and principles
Identification and explanation of underlying theory	Fails to identify any underlying theory	Identification of some aspects of underlying theory	Identification and explanation of some aspects of underlying theory	Identification and explanation of most relevant aspects of underlying theory	Identification and explanation of all relevant aspects of underlying theory
Utilisation of contemporary examples and illustrations	Fails to utilise any contemporary examples and illustrations	Limited utilisation of some contemporary examples and illustrations	Utilisation of a range of contemporary examples and illustrations	Wide ranging use of contemporary examples and illustrations	Wide ranging and innovative use of contemporary examples and illustrations
Evidence of extensive study and independent investigation	No evidence of extensive study and independent investigation	Very limited evidence of extensive study and independent investigation	Some evidence of some extensive study and independent investigation	Clear evidence of extensive study and independent investigation	Clear and wide ranging evidence of extensive study and independent investigation
Presentational quality of answer	Very poor presentation with many grammatical and spelling errors	Serious weaknesses in structure, grammar and spelling	Reasonably clear structure with satisfactory grammar and spelling	Logical structure and good quality of presentation overall	Coherent and reader friendly. Logical structure. Good quality in all attributes.

Teaching and Learning Strategy and Methods

Detailed study notes and a week-by-week study programme will serve to introduce key concepts and learning material, and to provide a framework for independent reading, research and reflection by the student. Each student will be expected to prepare answers to pre-set questions to be discussed in seminars. These questions will provide a focus for study and cognitive and analytical skill development, highlighting the attainment of the anticipated module learning outcomes. In addition, students will be provided with clear guidance upon sources of both traditional and electronic literature and data, so as to encourage exploration of contemporary applications of key concepts and principles. Consequently, the approach to teaching and learning aims to equip students with core knowledge and intellectual tools to enable them to become self-sufficient in their learning abilities pertaining to module content beyond the end of the module delivery period.

Students will also be expected to take short multiple choice tests beginning in week 4 and continuing fortnightly until week 12. These formative assessments will again concentrate attention upon the anticipated learning outcomes, and will provide rapid feedback on the progress of learning. The patterns of results will influence the subsequent balance of emphasis of seminar discussion. The outcome will also provide specific guidance to individual students on the areas of study requiring further work and consolidation.

Indicative Content

Introduction to the financial system
Broad trends within the financial system and the drivers of change
Financial intermediation
Deposit-taking institutions including retail and wholesale banks, building societies and the Bank of England
Investment institutions including insurance companies, pension funds, module trusts and investment trust companies
Financial regulation and supervision
Money markets
Capital markets
Foreign exchange markets
Derivatives markets.

Indicative Reading List

Each year, the most appropriate contemporary core text will be recommended along with a regularly up-dated range of supplementary books, newspapers and journal articles. Students will also be encouraged to utilise the very wide range of official and commercial web sites providing massive amounts of contemporary data and literature on topics relevant to the achievement of module learning outcomes. For 2000/2001, the reading list would include:

Core Text

Howells and Bain, Financial Markets and Institutions, 3rd ed., 2000, Financial Times/Prentice Hall, with Companion Web Site www.booksites.net/howells.

Supplementary Texts

Valdez, An Introduction to Global Financial Markets, 3rd ed., 2000, Macmillan.

Coggan, The Money Machine: How the City Works, 4th ed., 1999, Penguin.

Data Bases

Financial Times

The Economist

FT Discovery

Proquest

Mintel

Web Sites

www.news.bbc.co.uk

www.fsa.gov.uk

www.bankofengland.co.uk

www.londonstockexchange.co.uk

www.statistics.gov.uk

www.search.ft.com

Sheffield Business School, Howard Street, City Campus, Sheffield Hallam University, Sheffield, S1 1WB
Student Support - All Full Time students: Student Help and Information Point, Level 1, Stoddart, City Campus Telephone 0114 225 5256
Part Time Postgraduate and Doctoral students: The Welcome Point, Level 1, Stoddart, City Campus Telephone 0114 225 2820